A dedication ceremony on Thursday marked the completion of Kauhale I Ke Kula Uka, a new affordable family rental community in Kailua-Kona.
Stakeholders and dignitaries joined nonprofit developer Hawaii Island Community Development Corporation for the untying of the maile lei and blessing, according to a news release.
“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,” said Gov. Josh Green in the release. “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 has 99 units — 58 three-bedroom units and 41 two-bedroom units — for households earning up to 60% of area median income. For reference, a household of four in 2024 could earn up to $66,480 per year.
Six two-story and three-story garden-style residential wood-frame buildings hold the units that also include a manager’s unit, plus solar water heating and laundry facilities. Each unit has a range, oven, refrigerator and garbage disposal.
A community center has an onsite property management space, kitchen, private meeting rooms, congregate gathering space, mailboxes and a basketball court.
According to the county, families are expected to begin moving into the units in the coming weeks.
A lottery was held this summer during which applications were prioritized. And though the initial application phase has closed, a waiting list is being maintained by the property manager, Hawaii Affordable Properties, Inc.
According to the county, funding for the $54.4 million housing project came from tax-exempt bonds, Low-Income Housing Tax Credits, Rental Housing Revolving Fund, HOME, Housing Trust Fun and 75 Project-Based Vouchers awarded by Hawaii County’s Office of Housing and Community Development.
“Through the dedication and collaboration of our community partners, the County of Hawaii Office of Housing and Community Development is proud to support Kauhale I Ke Kula Uka,” said County of Hawaii Housing Administrator Susan Kunz. “This project exemplifies our commitment to providing affordable family rentals, ensuring that every family has a safe and welcoming place to call home.”
Since its founding in 1992, the HICDC has coordinated the development of 13 rental projects comprised of 523 units and 420 self-help homes. Kauhale I Ke Kula Uka is the nonprofit’s first family development on Hawaii Island and its first project in the Kona area since the completion of Hualalai Elderly in 2007.
A critical component of the project was the construction of a new two-mile sewer line to service Kauhale I Ke Kula Uka and a 1,300-unit market rate development planned by RCFC Kaloko Heights LLC. Without connecting to the existing sewer line near the West Hawaii Civic Center, neither project could progress.
Partnering with RCFC Kaloko Heights LLC helped the county facilitate the improvements through implementing a Community Facilities District and issuing just over $13 million in Special Tax Revenue Bonds to finance the project.
“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. This is a vital step toward creating a sustainable and thriving environment for all residents,” said Mayor Mitch Roth.
Kauhale I Ke Kula Uka is located at 73-4515 Hina Lani Street, roughly 2.3 miles east of Queen Kaahumanu Highway. For more information and to apply, visit the Hawaii Affordable Properties website.
Sarah Yamanaka covers news and events for Spectrum News Hawaii. She can be reached at sarah.yamanaka@charter.com.