On Friday, a groundbreaking and blessing ceremony was held for the County’s newest affordable housing development in Kailua-Kona.
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 north side of Hina Lani Street, approximately 2.3 miles 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. 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 while 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 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 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.
Photo credit: County of Hawaiʻi