Hawaiʻi County Council considering leasing 6 residential properties to nonprofits

After hearing over an hour of testimony and conducting a lengthy executive session, the Hawaiʻi County Council Finance Committee passed a controversial resolution to lease six county-owned residential properties to nonprofits.

The resolution said it is for “long-term permanent housing for underserved populations who face significant barriers to secure, safe and affordable housing.”

Last fall, the county Office of Housing and Community Development purchased eight single-family homes for $6.4 million using Emergency Rental Assistance 2 Program funds from the U.S. Department of Housing and Urban Development. The funding had to be used by Sept. 30, 2025.

In November, the Office of Housing and Community Development issued a request for proposals for the leasehold operation and rental of each of the six residential properties as long-term housing for underserved populations.

One of the households had a lessee that has backed out of the proposal and another household is not deemed livable at the moment.

“Our goal is to provide safe, decent housing in our communities and we have a gap in permanent housing options,” said Kehaulani Costa, administrator at the Office of Housing and Community Development. “The nonprofits have plans for support services at each location, and the Office of Housing and Community Development will manage the properties following guidelines set by the county, state and federal government.”

The funding requires the homes purchased be used for long-term affordable housing, which, according to the federal government requires them to be leased for six months or longer.

The prospective lessees were chosen for six of the houses and are listed below:

• 73-4338 Napoo Place in Kona Palisades, bought for $1.28 million in October, with Hale Kipa as the prospective lessee.
• 74-5068 Kealapua St. in Kona Chocho Estates, bought for $990,000 in October, with Mental Health Kōkua as the prospective lessee.
• 15-1393 29th Ave. in Hawaiian Paradise Park, bought for $530,000 in October, with HOPE Services Hawaiʻi as the prospective lessee.
• 81-994 Hale Keekee Place in Kealakekua, bought for $1.25 million in October, with Mental Health Kōkua as the prospective lessee.
• 2089 Kinoʻole St. in Waiākea Homestead Houselots, bought for $860,000 in October, with Big Island Substance Abuse Council as the prospective lessee.
• 16-1397 35th Ave. in Orchidland, bought for $840,000 in November, with HOPE Services Hawaiʻi as the prospective lessee.

The nonprofits will each only pay $10 annually for the houses to the county.

Costa said the $10 amount was a precedent set before her tenure and is in place because the lessees take on all maintenance and repair responsibilities.

The proposed initial lease term is from April 1, 2026 to March 31, 2027 with four one-year options to renew.

Ashley Ferraro, an Orchidland Estates resident, said she was concerned about the 4,472-square-foot multifamily home in Orchidland that the county wants to lease to HOPE Services Hawaiʻi.

While she is not against helping low-income families, Ferraro was frustrated with not knowing how the nonprofits would use each location and who they aim to serve.

“The public has a right to know from nonprofits how exactly these locations will be used in their neighborhoods and what demographic they will serve,” Ferraro said. “I would much rather help low-income families with children and know there will be 24/7 staff on leased locations to help manage crises if needed.”

Hilo community member Douglas Halstead said he does not think this housing can make a difference if there aren’t social services to match.

He said he understood the Office of Housing and Community Development was “under pressure to spend the unused grant money.”

But he added: “Housing doesn’t cure the social problems. The individuals who have those types of special needs will still have those special needs when they move in. So there have to be other services brought to it.”

One of the prospective lessees is the Big Island Substance Abuse Council, which plans to use the property to operate the Kinoʻole Moms and Babies Therapeutic Living Program to serve pregnant women and mothers with infants who are engaged in substance use and mental health treatment.

Lane Miyake-Kamahele, a staff member and former client of Big Island Substance Abuse Council, voiced her support for the resolution due to her personal experience with addiction and the nonprofit’s residential programs.

“Big Island Substance Abuse Council didn’t just offer me a bed; it offered me a lifeline,” Miyake-Kamahele said. “The residential program is not just housing; they are the difference between life or death for people like me.”

She added: “Without stable, therapeutic, supervised environments, countless individuals will never get the chance I was given. They will remain trapped, unseen and unsupported. The county can empower nonprofit providers to create the same safe spaces that saved me.”

According to Dr. Hannah Preston-Pita, executive director of Big Island Substance Abuse Council, the property would service approximately six to eight mothers and their infants at any given time, translating to an estimated 20 to 30 women and children served annually.

“We have operated in this exact neighborhood for over 20 years without complaint and with strong community relationships,” Preston-Pita said. “Our management plan includes 24/7 staffing, structured residency agreements, safety protocols, and accountability measures to ensure the property remains a positive asset to the community.”

Ultimately, the Finance Committee passed the resolution, with councilmembers Ashley Kierkiewicz and Matt Kanealiʻi-Kleinfelder voting no..

The resolution will be on the Hawaiʻi County Council agenda on Wednesday, April 22.