HILO, Hawaii: A new 60-unit affordable senior rental housing project in Hilo is set to break ground.

The Mohouli Heights Senior Neighborhood has scheduled a groundbreaking ceremony for Thursday, March 29 at 10:30 a.m.

The project will be located at the corner of Komohana and Mohouli Streets in Hilo.

Phase 1 is comprised of 11 residential buildings and a community gathering place connected with covered walkways. In addition to the new Hilo Adult Day Center future plans include 90 more residential units for seniors.

The Hawaii’s Hawaii Housing Finance and Development Corporation provided $20.5 million in state and federal Low Income Housing Tax Credits, and two different loans totalling over $16 million dollars. The project is also financed with $600,000 in HOME Investment Partnership Act funds administered by the County of Hawaii and a $4.0 million interim loan from the Rural Community Assistance Corporation.

The County of Hawaii and the Hawaii Island Community Development Corporation were also a part of the partnership that brought the project to fruition.

The rental units are targeted at seniors whose incomes are at or below 30 to 50 percent of the Hawaii County median income as determined by U.S. Department of Housing and Urban Development, or HUD.

Utilizing rental assistance from HUD and the County of Hawaii, the tenants’ share of the monthly rent will be approximately 30 percent of their income for a 576 square foot one-bedroom unit. In exchange for federal and state financing and tax credits rents will remain affordable for 61 years.