A new affordable housing project in Kapolei that eventually will add almost 500 homes to O'ahu's moderately priced inventory begins signing up buyers and renters tomorrow.

The development is among more than 25 affordable or moderately priced housing projects of the Hawai'i Housing Finance & Development Corporation that are expected to bring roughly 5,000 homes to the state over the next five years.

At the same time, some housing advocates say the homes, which are priced for moderate-income families, aren't affordable enough to help Hawai'i's growing low-income and homeless populations.

And even with the new homes, there is still a "tremendous need" for affordable housing on O'ahu, said Dan Davidson, executive director of HHFDC, a state agency.

Applications for the new homes in the Nohona project in Kapolei — developed through a partnership of HHFDC and Castle & Cook — will become available for the first time tomorrow.

The developer said the project will be one of the larger affordable housing communities in 'Ewa.

Nohona, slated to be finished by the middle of next year, is the first of three affordable neighborhoods being built on 20 acres in Kapolei by Castle & Cooke.

When finished at the end of 2009, the entire project will consist of 476 multi-family units, 248 of which will be rentals and 228 of which will be sold fee simple. Units will be from 920 square feet to 1,180 square feet.

Other affordable projects coming on line in the next few years include a 330-unit condominium project in Waipahu, a 200-unit planned rental complex in Kaka'ako and a 160-unit senior rental project in Iwilei.

While Castle & Cooke has not priced the units yet, the developer estimated that a three-bedroom, two-bath unit would cost $345,000 to $350,000. A two-bedroom, two-bath unit would be around $325,000 and a three-bedroom, 2 1/2 bathroom unit around $385,000.

The median price for a single-family home on O'ahu is $685,000.

The three affordable developments will target first-time homebuyers with income levels of 140 percent and below the area median income, or $102,900 for a family of four.

Some housing advocates, however, said while the new housing will help middle-income families, the units are still not affordable enough for many Hawai'i residents.

The Rev. Bob Nakata, a member of the non-profit group Faith Action for Community Equity, said the new housing project is "part of the solution, but it's too bad that it has to be at such a high price."

"It's sad that that's what's considered affordable in the for-purchase market," he said.

Nakata described Hawai'i's affordable housing situation as "very weak but getting better."

"More affordables are being built, but not fast enough to affect the market right now, and as a consequence, homelessness is still getting worse," said Nakata, whose organization has been encouraging nonprofit and for-profit companies to develop more affordable housing.

Others welcomed the project to Kapolei, a district that has recently attracted lots of young Hawai'i families with moderate incomes.

"Affordable housing is certainly something we need out here because many people can't afford the $700,000 to $800,000 homes, which seem to be the norm out here," said Maeda Timson, a Kapolei resident and member of the neighborhood board.

"It allows our young families to come out and make their home here and raise their families in the city of Kapolei."

Carleton Ching, Castle & Cooke's vice president of community and government relations, said the company pursued the projects "because they were affordable. We wanted to help the supply."

"The state has brought lots of packages and commitments to the table to make affordable housing work here," he said. "This is a great private-public partnership to get to the end result of affordable housing."

In the next seven years, 1,100 units will be added to the existing 2,899 units that have already been built in the Villages of Kapolei for a total of about 4,000 new homes, Davidson said. The units are considered "primarily affordable."

Garret Furukido, project sales director for Castle & Cooke, said the company has been receiving roughly 20 calls a day about the project and 80 people registered with Castle & Cooke's Web site yesterday in anticipation of Nohona going on sale.