The Hawaii Public Housing Authority has signed a predevelopment agreement with a team of developers to redevelop Mayor Wright Homes into a mixed-use, mixed-income project.

The federal public housing project in Kalihi was built in 1953 and the state has struggled with its upkeep. Residents even settled a class-action lawsuit against the state because of substandard conditions.

“This reinvestment in public housing will provide new homes in a thriving community that includes employment centers, open space and recreational facilities, and services geared to local residents. Through this partnership, we’ll be able to keep housing affordable in Kalihi while increasing opportunities for people who live in the area,” Gov. David Ige said in a press release.

The development group is led by Hunt Companies, Inc. and includes McCormack Baron Salazar and Vitus Group.

In a press release, HPHA said the predevelopment agreement allows the agency to work with the developers and community stakeholders to create a master plan and pursue regulatory approvals.

“With inadequate state and federal funds available to address its capital needs, the mixed-income, mixed-finance, mixed-use model will provide the additional capital necessary to truly revitalize the site and surrounding neighborhood,” the press release said.