6 county-owned properties to be leased to nonprofits as long-term housing

Despite some opposition from residents, the Hawai‘i County Council on Wednesday passed a resolution to lease six county-owned residential properties to nonprofits.

These homes will be for “long-term permanent housing for underserved populations who face significant barriers to secure, safe and affordable housing.”

Resolution 475-26 passed 5-3, with council members Ashley Kierkiewicz, Matt Kaneali‘i-Kleinfelder and Dennis Onishi the dissenting vote. Council Member Holeka Inaba was absent.

The measure authorizes the negotiation of six one-year leases with four one-year renewal options at an approximate annual cost of $10 for the residential properties.

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

• 73-4338 Napo‘o 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.

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.

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

As was the case at the Finance Committee meeting on April 7, several people testified for and against the resolution.

Some residents expressed concern over a lack of transparency about what the homes would be used for and the safety of the neighborhoods.

“I’m very sympathetic to fears and concerns of the folks in the neighborhoods where these homes were purchased, but I agree that they will be well supervised and there will be people to be accountable for any actions,” Council Member Jenn Kagiwada said.

Kagiwada said three issues highlighted by several speakers spoke to the crux of this crisis of unattainable housing, mental health concerns and addiction issues. She said the council, the county and the state are doing their best to address these issues.

Kaneali‘i-Kleinfelder had concerns about how the houses would be maintained in the future with or without oversight from the county.

Jim Dorr, a resident near one of the properties that will be leased to Mental Health Kōkua, opposed the measure saying nearby residents were not being informed in advance about what was going to be done with the house.

“We are a small neighborhood of private or single-family residences, and now we’re being told that they’re entertaining a lease to Mental Health Kōkua, who serves the severely mentally challenged or ill, whether it be related to things mental or from substance abuse,” he said.

Shirley David, representing St. Michael, the Archangel Church in Kailua-Kona, supported the resolution, saying that while she understands the issues that neighbors have with these houses, she thinks about how anyone in any neighborhood doesn’t know their neighbors anymore.

“It behooves us to come meet them and talk to them about what they care for and talk about the issues that you may be seeing,” David said. “That’s what a good community does.”