A new project that will house dozens of low income families broke ground Friday on Hina Lani Street.
Following a traditional Hawaiian blessing by Kahu Danny Akaka, dignitaries and stakeholders turned the earth to symbolically start the project.
The Kaloko Heights Affordable Housing Project will feature 99 family units, including 58 3-bedroom units and 41 2-bedroom units, in addition to one 3-bedroom manager’s unit. The 10.75-acre site is located on the Kohala (north) side of Hina Lani Street, approximately 2.3 miles mauka (east) of Queen Ka‘ahumanu Highway.
The $54.4 million development will serve families earning 30% to 60% of Area Median Income, which ranges from $39,200 to $78,400 for a family of four. Rent will range from $530 to $1,335, depending on income.
The family rental units will be housed in six two-story and three-story garden-style residential wood-frame buildings with solar water heating. Each unit will be equipped with a range, oven, refrigerator, and garbage disposal.
“We’ve made a commitment to addressing the affordable housing crisis for our residents, and we’re going to deliver,” said Mayor Mitch Roth. Every unit we build is a place for a local family to call home. That’s what sustainability is all about – making our island a place where our keiki can raise their keiki for generations.”
A centrally located community center will provide onsite property management space, kitchen, private meeting rooms, congregate gathering space, mailboxes, and laundry facilities. A playground and ‘tot lot’ will also be built.
Developer Kaloko Heights Housing LLLP, general partner Kaloko Heights Community Development, and manager Hawaii Island Community Development Corporation anticipate completion of the Kaloko Heights Affordable Housing Project in the fourth quarter of 2024. Families could begin occupying units in early 2025.
The target population for the project is low-income households with children and families at-risk of or currently experiencing homelessness, or transitioning out of an emergency shelter or transitional housing program.
Coastal Construction Co. is the contractor. Property management will be provided by Hawaii Affordable Properties.
Funding for the affordable housing project is derived from tax-exempt bonds, Low-Income Housing Tax Credits (LIHTC), HOME, Housing Trust Fund, and project-based Housing Choice Vouchers.
Another critical component in getting the project off the ground was the construction of a new sewer line to service the affordable housing units, as well as the 1,300-unit market-rate development planned by RCFC Kaloko Heights LLC. Without a connection to the existing sewer line near the West Hawaii Civic Center, neither project could progress.
To facilitate the costly improvements, Hawaii County partnered with RCFC Kaloko Heights LLC to implement a Community Facilities District and issue just over $13 million in Special Tax Revenue Bonds to finance the project. The bond, which will not affect the County’s creditworthiness or bond rating, will be repaid in full through owners within the market-rate development.
“This innovative funding mechanism allows the Kaloko Affordable Housing Project to move forward now to provide much-needed affordable housing on Hawaii Island.
Reaching this milestone and marking the start of construction of this long-planned affordable housing development would not have been possible without this partnership,” said Hawaii County Office of Housing and Community Development Housing Administrator Susan Kunz. “This type of private-public collaboration is what is needed to ensure every Hawaii Island resident has a safe place to call home without having to choose between paying rent and other necessities.”
Akaka said the location chosen for the project is a very special place.
“It is special to give this place for affordable housing for our families,” he said. “It will be a safe place for all.”
