New affordable housing units provide more options for Kona families

A dedication ceremony marked the completion of Kauhale I Ke Kula Uka, a new affordable family rental community in Kailua-Kona on Thursday.

Nonprofit developer Hawaiʻi Island Community Development Corporation was joined by Gov. Josh Green, Mayor Mitch Roth and several stakeholders and dignitaries for the untying of the maile lei and blessing of the housing units.

“Today, as we celebrate the completion of Kauhale I Ke Kula Uka, we reaffirm our commitment to addressing the urgent need for affordable housing in our state,” Green said during the ceremony. “This project exemplifies our collaborative efforts to provide safe, welcoming homes for families, reflecting the belief that every individual deserves a place to call home. Together, we are making strides toward a better quality of life for all our communities.”

Kauhale I Ke Kula Uka features 99 units, including 58 three-bedroom units and 41 two-bedroom units, which will house households earning up to 60% of area median income, and one managerʻs unit. A house of four could earn up to $66,480 per year in 2024.

The units are in six garden-style residential wood frame buildings with solar water heating and laundry facilities. Each unit is equipped with a range, oven, refrigerator, and garbage disposal.

A centrally located community center is a gathering space with a kitchen, private meeting rooms, mailboxes, a basketball court and place for onsite property management.

Families are expected to begin moving into the units in the coming weeks, just in time to celebrate the holiday season and the start of a new year in a new home.

Applications for units were prioritized through a lottery held this summer, and while the initial application phase has closed, a waiting list is maintained by the property manager, Hawaiʻi Affordable Properties, Inc.

The project cost 54.4 million with funding coming from tax-exempt bonds, Low Income Housing Tax Credits, the Rental Housing Revolving Fund, the HOME Investment Partnerships Program, Housing Trust Fund and 75 project-based vouchers awarded by the County of Hawaiʻi Office of Housing and Community Development.

“Through the dedication and collaboration of our community partners, the County of Hawaiʻi Office of Housing and Community Development is proud to support Kauhale I Ke Kula Uka,” County of Hawaiʻi Housing Administrator Susan Kunz said. “This project exemplifies our commitment to providing affordable family rentals, ensuring that every family has a safe and welcoming place to call home.”

Kauhale I Ke Kula Uka is the first family development by the Hawaiʻi Island Community Development Corporation on Hawaiʻi Island and the first project in the Kona area since the completion of senior housing at Hualalai Elderly in 2007.

Founded in 1992, the Hawaiʻi Island Community Development Corporation is a nonprofit on a mission to develop housing for low- and moderate-income households on Hawaiʻi Island.

In 32 years, the nonprofit has coordinated the development of 13 rental projects comprising 523 units and 420 self-help homes.

“Kauhale I Ke Kula Uka marks a significant milestone for our organization and the community,” said Keith Kato, Director of the Hawaiʻi Island Community Development Corporation. “As our first multi-family development in Kona, we are excited to continue our mission of providing affordable housing solutions and to foster vibrant neighborhoods where families can flourish.”

Another critical component for the affordable housing project was the construction of a new two-mile sewer line to service Kauhale I Ke Kula Uka, 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 Hawaiʻi Civic Center, neither project could progress.

To facilitate the costly improvements, the County of Hawaiʻi partnered with RCFC Kaloko Heights LLC to implement a Community Facilities District, which funds public facilities construction or improvements, and issued just over $13 million in special tax revenue bonds to finance the project. The bond will be repaid in full through owners within the market-rate development and will not affect the countyʻs creditworthiness or bond rating, according to a press release from Public Information Officer Cyrus Johnasen.

“By partnering with RCFC Kaloko Heights LLC, we have not only enabled the Kauhale I Ke Kula Uka project but also laid the groundwork for future developments that will benefit our entire community,” Roth said. “This is a vital step toward creating a sustainable and thriving environment for all residents.”

Kauhale I Ke Kula Uka is located at 73-4515 Hina Lani Street, approximately 2.3 miles east of Queen Kaʻahumanu Highway. For those interested, Hawaiʻi Affordable Properties has applications and more information.

The County of Hawaiʻi Office of Housing and Community Development is responsible for the planning, administration and operation of all County of Hawai’i housing programs. Its mission is to provide for the development of viable communities through decent housing, suitable living environments and expanded economic opportunities. Programs and updates can be found on its quarterly newsletter.