Hawai‘i County disperses funds for 6 upcoming affordable housing projects

Approximately $11.8 million will be distributed to six affordable housing projects across Hawai‘i Island.

The money, coming from Hawai‘i County’s Affordable Housing Production Program, is part of the program’s grant awards for the 2025-26 fiscal year, according to a press release from Hawai‘i County. The program, operated by the County’s Office of Housing and Community Development, focused on projects supporting the following priorities: increasing units for moderate-income families, supporting sustainable homeownership opportunities, and preserving existing housing units.

“These grant awards reflect the County’s commitment to expand affordable housing and maintain community stability,” said Mayor Kimo Alameda. “Whether we are building new units or preserving existing properties, each step ensures that we create a sustainable pipeline of housing for local residents.”

Of the six projects awarded funds, four were selected through the competitive Request for Proposals process. Two County-administered initiatives were funded through the program’s discretionary set-aside.

The four projects selected through the request for proposals process were approved by the County Council through Resolution 384-25, which included the following:

Ho’omalu at Waikoloa
Type: New Construction
Housing: Rental
Affordability Period: 66 years
Area Median Income Level: <100%
Units: 229
Amount: $3 million

Laula Road
Type: New Construction
Housing: For-Sale
Affordability Period: Perpetuity
Area Median Income Level: 81%-140%
Units: 1
Amount: $300,000

Ua Hale Aʻela Hawai’i County
Type: Acquisition/Financial Assistance
Housing: Rent to Own
Affordability Period: Perpetuity
Area Median Income Level: <120%
Units: 28
Amount: $4.1 million

Deferred Payment Loan Program
Type: Financial Assistance
Housing: Ownership
Affordability Period: Perpetuity
Area Median Income Level: 81%-140%
Units: 8
Amount: $790,100

The two county projects funded with money set aside are:

Hawaiʻi County Housing Protection Program
Type: Acquisition/Preservation
Housing: Rental/For-Sale
Affordability Period: Varies
Area Median Income Level: <120% (rental) / <140% (for-sale)
Units: TBD
Amount: $1,697,346

Home Improvement Loan Program
Type: Financial Assistance
Housing: Ownership
Affordability Period: Perpetuity
Area Median Income Level: <80%
Units: 40
Amount: $2 million

According to county officials, this year’s funding cycle incorporated broad community input, including two public meetings, a countywide housing needs survey, and amendments to the program’s Administrative Rules.

All projects were evaluated using a standardized weighted scoring framework that considered impact and delivery, readiness, community need, organizational qualifications and capacity, and financial feasibility and leverage.

“Deploying these Affordable Housing Production funds is about more than building units — it’s about investing in the long-term stability of our island’s families,” said County Housing Administrator Kehaulani Costa. “By supporting a mix of new construction, homeownership opportunities, and preservation efforts, we’re strengthening the foundation for a more affordable Hawaiʻi Island.”

Funding for the program is made possible through an ordinance passed by the Hawaiʻi County Council in 2022, which appropriates a minimum of $5 million per year to the Office of Housing and Development for the production and preservation of affordable housing.

Additional details on the projects can be found in the Fiscal Year 2025-26 Affordable Housing Production Program’s Annual Plan available online here. For more information on the program, including annual plans and reports, please visit www.hawaiicounty.gov/ahp or email ohcd.ahp@hawaiicounty.gov.