(BIVN) – A blessing was held on Friday for a new, 100-unit affordable housing development in Kona.
The Kaloko Heights Affordable Housing Project, expected to be completed in Fall 2024, will provide dozens of much-needed homes for low-income families on Hawaiʻi island.
From the County of Hawaiʻi:
The Kaloko Heights Affordable Housing Project will feature 99 family units, including 58 3-bedroom units and 41 2-bedroom units, in addition to one 3-bedroom manager’s unit. The 10.75-acre site is located on the Kohala (north) side of Hina Lani Street, approximately 2.3 miles mauka (east) of Queen Kaʻahumanu Highway.
The $54.4 million development will serve families earning 30% to 60% of Area Median Income, which ranges from $39,200 to $78,400 for a family of four. Rent will range from $530 to $1,335, depending on income.
The family rental units will be housed in six two-story and three-story garden-style residential wood-frame buildings with solar water heating. Each unit will be equipped with a range, oven, refrigerator, and garbage disposal.
“We’ve made a commitment to addressing the affordable housing crisis for our residents, and we’re going to deliver,” said Mayor Mitch Roth. Every unit we build is a place for a local family to call home. That’s what sustainability is all about – making our island a place where our keiki can raise their keiki for generations.”
A centrally located community center will provide onsite property management space, kitchen, private meeting rooms, congregate gathering space, mailboxes, and laundry facilities.
Developer Kaloko Heights Housing LLLP, general partner Kaloko Heights Community Development, and manager Hawaiʻi Island Community Development Corporation anticipate completion of the Kaloko Heights Affordable Housing Project in the fourth quarter of 2024. Families could begin occupying units in early 2025.
Coastal Construction Co. is the contractor. Property management will be provided by Hawaiʻi Affordable Properties.
Funding for the affordable housing project is derived from tax-exempt bonds, Low-Income Housing Tax Credits (LIHTC), HOME, Housing Trust Fund, and project-based Housing Choice Vouchers.
Another critical component in getting the project off the ground was the construction of a new sewer line to service the affordable housing units, as well as the 1,300-unit market-rate development planned by RCFC Kaloko Heights LLC. Without a connection to the existing sewer line near the West Hawaii Civic Center, neither project could progress.
To facilitate the costly improvements, Hawaiʻi County partnered with RCFC Kaloko Heights LLC to implement a Community Facilities District and issue just over $13 million in Special Tax Revenue Bonds to finance the project. The bond, which will not affect the County’s creditworthiness or bond rating, will be repaid in full through owners within the market-rate development.
“This innovative funding mechanism allows the Kaloko Affordable Housing Project to move forward now to provide much-needed affordable housing on Hawaiʻi Island. Reaching this milestone and marking the start of construction of this long-planned affordable housing development would not have been possible without this partnership,” said Hawaiʻi County Office of Housing and Community Development Housing Administrator Susan Kunz. “This type of private-public collaboration is what is needed to ensure every Hawaiʻi Island resident has a safe place to call home without having to choose between paying rent and other necessities.”
The Hawai’i County Office of Housing and Community Development is responsible for the planning, administration, and operation of all County of Hawai’i housing programs. Our Mission is to provide for the development of viable communities through decent housing, suitable living environments, and expanded economic opportunities.