A dedication ceremony was held Thursday, October 24, 2024, marking the completion of Kauhale I Ke Kula Uka, a new affordable family rental community in Kailua-Kona.

Nonprofit developer Hawaiʻi Island Community Development Corporation (HICDC) was joined by stakeholders and dignitaries for the untying of the maile lei and blessing of the critically needed housing units.

“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. 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,” said Governor Josh Green, M.D.

Kauhale I Ke Kula Uka features 99 units, including 58 3-bedroom units and 41 2-bedroom units, for households earning up to 60% of area median income (AMI), in addition to a manager’s unit. For reference, a household of four in 2024 could earn up to $66,480 per year.

The units are housed in six two-story and three-story garden-style residential wood-frame buildings with solar water heating and laundry facilities. Each unit is equipped with a range, oven, refrigerator, and garbage disposal.

A centrally located community center provides onsite property management space, kitchen, private meeting rooms, congregate gathering space, and mailboxes. Additionally, there is a basketball court for recreation.

Families are expected to begin moving into the units in the coming weeks, just in time to celebrate the holiday season and the start of a new year in a new home.

Applications for units were prioritized through a lottery held this summer, and while the initial application phase has closed, a waiting list is maintained by Hawaiʻi Affordable Properties, Inc., the property manager.

Funding for the $54.4 million Kauhale I Ke Kula Uka is derived from tax-exempt bonds, Low-Income Housing Tax Credits (LIHTC), Rental Housing Revolving Fund (RHRF), HOME, Housing Trust Fund, and 75 Project-Based Vouchers awarded by the County of Hawaiʻi Office of Housing and Community Development.

“Through the dedication and collaboration of our community partners, the County of Hawaiʻi Office of Housing and Community Development is proud to support Kauhale I Ke Kula Uka. This project exemplifies our commitment to providing affordable family rentals, ensuring that every family has a safe and welcoming place to call home,” said County of Hawaiʻi Housing Administrator Susan Kunz.

Kauhale I Ke Kula Uka is the first family development by the HICDC on Hawaiʻi Island and the nonprofit’s first project in the Kona area since the completion of senior housing at Hualalai Elderly in 2007. Since its founding in 1992, the HICDC has coordinated the development of 13 rental projects comprising 523 units and 420 self-help homes.

“Kauhale I Ke Kula Uka marks a significant milestone for our organization and the community. As our first multi-family development in Kona, we are excited to continue our mission of providing affordable housing solutions and to foster vibrant neighborhoods where families can flourish,” said Keith Kato, HICDC Executive Director.

Another critical component to realizing the affordable housing project was the construction of a new 2-mile sewer line to service Kauhale I Ke Kula Uka, 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 Hawaiʻi Civic Center, neither project could progress.

To facilitate the costly improvements, the County of Hawaiʻi 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.

“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 County of Hawaiʻi Mayor Mitch Roth.

Kauhale I Ke Kula Uka is located at 73-4515 Hina Lani Street, approximately 2.3 miles east of Queen Kaʻahumanu Highway. For more information and to apply, please visit https://www.hawaiiaffordable.com/.

The County of Hawaiʻi 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.

More information on the Office of Housing and Community Development and its programs can be found online . To receive news alerts and OHCD’s quarterly newsletter, click here. You can also connect with OHCD on Facebook and Instagram.