Business

Affordable Rental Complex to Be Completed in 2017

October 12, 2016, 3:00 PM HST
* Updated October 12, 3:03 PM
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Kamakana Villages at Keahuolu, Hale Makana ‘O Kupuna for seniors. Courtesy rendering.

The Michaels Development Company, in partnership with the Hawaii Housing Finance & Development Corporation, held a blessing on Wednesday, Oct. 12, for Kamakana Villages at Keahuolu, new affordable rental developments in Kailua-Kona.

The $52 million developments will provide 170 homes for families and seniors.

Kamakana Villages at Keahuolu, Hale Makana ‘O Kupuna for seniors. Courtesy rendering.

Kamakana Villages at Keahuolu, Hale Makana ‘Ohana for families. Courtesy rendering.

“With a shortage of housing across the state, Kamakana Villages at Keahuolu will provide much-needed homes for families and seniors in Kailua-Kona,” said Monika Mordasini Rossen, vice president of development for The Michaels Development Company. “We are pleased to work together with the governor, HHFDC, Hawai‘i County, HUD and the community to build new, quality rental housing that is conveniently located in Kona.”

Kamakana Villages at Keahuolu is a master planned community being developed in partnership with the HHFDC and Forest City Hawaii Kona LLC (Forest City) as master developer.

Forest City is working exclusively with Michaels Development Company to develop the affordable rental housing in Phase 1A of Kamakana Villages.

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Located at the corner of Ka‘eka Street and Manawalea Street, the new community is conveniently located less than a mile from Kealakehe Elementary School and the shops and restaurants of Kailua-Kona.

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The two developments—Hale Makana ‘Ohana for families and Hale Makana ‘O Kupuna for seniors—are being built simultaneously.

Both developments will include a community center that will provide residents with a place to gather and socialize.

“Kamakana Villages at Keahuolu is an important part of my administration’s focus on providing affordable housing options across the state,” said Gov. David Ige. “This public-private partnership between the state and Michaels Development is a much-needed step toward achieving our housing goals for the Kona community.”

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The developments were financed with 9% Low Income Housing Tax Credits (LIHTC) awarded by HHFDC in 2015 and syndicated by Riverside Capital to US Bank earlier this year.

Michaels received a ground lease and funding from the Dwelling Unit Revolving Fund and Rental Housing Revolving Fund from HHFDC, as well as Section 8 Project Based Vouchers and Community Development Block Grant funding from the County of Hawai‘i and The Department of Housing and Urban Development (HUD).

Hale Makana ‘O Kupuna also received a $765,000 Affordable Housing Program award from the Federal Home Loan Bank of San Francisco in 2015.

Key parties providing construction and permanent financing included: Bank of America, Citibank, Freddie Mac, HHFDC, Better Tomorrows and Foresight Affordable Housing-Kamakana LLC.

The first to be completed will be Hale Makana ‘Ohana rentals for families. It will include five residential buildings with 50 one-bedroom and 35 two-bedroom units, as well as a community center that will provide space for social services, management offices, a computer room and a laundry facility.

Second will be the Hale Makana ‘O Kupuna for seniors that will also have five residential buildings, but with 80 one-bedroom and five two-bedroom units, including a laundry room on each floor. A community center building will provide space for social services, management offices, a computer room, and will serve as a gathering area for seniors to socialize.

Future residents must meet maximum household income limits that are at or below set Area Median Income (AMI) as determined annually by HUD.

For Hale Makana ‘Ohana and Hale Makana ‘O Kupuna, there will be a total of four units for families and 17 units for seniors at 60% AMI, 60 units for families and 51 units for seniors at 50% AMI, 20 units for families and two units for seniors at 30% AMI.

Additionally, there will be 30 units for families and 15 units for seniors with Project Based Section 8, which allows qualifiers to pay 30% of their income for rent.

The current AMI and anticipated rents are as follows:

1 Bedroom                  Income Range                         Rent          

30% AMI                      $14,340 – $18,420                   $384

50% AMI                      $22,110 – $30,700                   $640

60% AMI                      $28,680 – $36,840                   $768

2 Bedroom

30% AMI                      $16,360 – $22,110                   $460

50% AMI                      $27,300 – $36,850                   $767

60% AMI                      $32,760 – $44,220                   $921

Mass grading of the site began in July 2016 and vertical construction on the buildings began in September 2016. Construction will be completed at the end of 2017, with leasing information available in spring 2017.

The Michaels Development Company is a private sector firm with over 40 years of experience in producing top quality, affordable housing. All aspects of affordable housing development, from conception through construction completion, ownership and operations are within Michaels’ expertise and experience.

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