The state has issued a request for proposals that would preserve the same number of public housing units at Kuhio Park Terrace and Kuhio Homes, while adding new units for higher-income families and addressing millions of dollars in repairs.

The request is modeled on successful public housing redevelopment projects in other states, and represents more than a year of work by the Hawai'i Public Housing Authority to try to figure out how to address glaring needs at public housing projects in the worst shape — without much in the way of state appropriations. Officials have said mixed-income redevelopment will require little to no direct appropriations, but will need state housing tax credits, loans and other subsidies.

Mixed-income redevelopment is designed to revamp structures, adding higher-income apartments to existing public housing projects to bring in more money and de-concentrate poverty.

The request says redevelopment proposals should preserve all the public housing units at the projects, designed for those making 30 percent of median area income or less, while adding new subsidized, workforce and market units. It also says redevelopment should address backlogged maintenance needs, including some $162 million in repairs needed at Kuhio Park Terrace.

Under the plan, the state would lease the land under the projects, but retain ownership.

State housing officials have said if mixed-income redevelopment works at KPT, it could be replicated at other public housing projects in need of major repairs.

The request for proposals notes that redevelopment plans for the projects should include information on how public housing residents will be moved to other projects or into subsidized units on the private market during construction. It also says relocated residents will have the "right to return" if they are in good standing, but adds, the "HPHA may ask that a committee composed of residents will establish criteria for returning residents to promote a healthy new community."

Some 2,500 people live at Kuhio Park Terrace and Kuhio Homes in Kalihi. The two have 748 units, located in two high-rise buildings and 14 low-rise structures. Kuhio Park Terrace was built in 1965; Kuhio Homes opened in 1953.

The state said that it would prefer to keep the towers at KPT standing.

The redevelopment plans comes as the state is grappling with how to address claims in a recently filed federal class action lawsuit, which alleges conditions at Kuhio Park Terrace and Kuhio Homes are substandard.

Redevelopment proposals are due May 1. A bid will be chosen in August.