Land sale final for affordable senior rental housing project
The Maui News
Catholic Charities Housing Development Corp. finalized its purchase of 3.86 acres in Kahului from Alexander & Baldwin late last month for a 165-unit senior affordable rental project.
The land transaction for Kahului Lani was completed June 27, according to the nonprofit development corporation’s announcement Monday. No terms were disclosed.
“We are excited that this land purchase will allow us to move ahead in the development of this important facility,” said development corporation President Rick Stack.
The site, located across the street from Foodland and near the Kahului Public Library, is bordered by Vevau, School and South Kane streets. The developers plan to build in two phases with construction on the first phase — a six-story building with 82 units — set to begin by the end of the year. Completion is targeted for 2020.
The future second phase will include another six-story building with 83 units and a two-story multipurpose building. The multipurpose facility will include offices for Catholic Charities Hawai’i, the development corporation’s parent entity, to provide on-site case management services and programs for residents.
Kahului Lani will provide low-income seniors with an affordable permanent living option, offering complementary amenities so residents can “age in place.” Seniors ages 55 and older who earn 60 percent or less of the county median income (about $34,190 for a single person, according to the county) will be eligible to apply as tenants.
The environmental assessment for the project put monthly rents for one-bedroom units at between $484 to $969 based on 2017 federal Housing and Urban Development income and gross rent limits, which could change when the project is completed and rented.
The entire project is expected to cost $47.8 million, according to the environmental assessment. The development corporation said Monday that financing for construction of the first phase already has been secured through various funding sources, including state and federal low income housing tax credits, the Rental Housing Revolving Fund and a Hula Mae Multi-Family Bond.
Earlier this year, the Maui Planning Commission granted a special management area use permit to allow construction of the senior affordable rental project.
A&P Properties originally had planned the Kane Street Commercial project for the site and had worked to obtain land-use approvals and to begin sales in the mid-2000s. It was planned as a mixed-use development of two and three-bedroom apartments with commercial space, but delays and the Great Recession set the project back.
“We are pleased to have played a role in helping Catholic Charities Hawaii to bring more affordable housing to Maui, in particular for Maui’s seniors, who are very important to A&B,” said Lance Parker, A&B chief real estate officer. “We are confident that Catholic Charities understands the needs of this special group and will provide housing that they all can truly call home.”
A&B will not be involved in the project.
Incorporated in 1999, the nonprofit Catholic Charities Housing Development Corp. operates as a subsidiary of Catholic Charities Hawai’i. It owns, develops and manages real estate properties with the intent to provide affordable housing for the elderly, special needs individuals and other socially or economically disadvantaged people and families.