Kihei affordable housing project gets financing
The Maui News
Financing has been obtained for the 118-unit Kaiwahine Village affordable housing project in north Kihei, according to an announcement.
Hunt Capital Partners, in partnership with Urban Housing Communities LLC, announced the closing of $25.98 million in federal low-income housing tax credit equity and $12.9 million in Hawaii state tax credit equity financing for the rental housing project.
The $62.76 million project is targeted for families earning from 30 to 60 percent of the area median income. According to May guidelines, that would be $24,420 to $48,840 for a family of four.
Hunt Capital Partners committed $31.5 million in federal and state equity to the project. Other capital providers include Citibank, which provided a $33.18 million construction loan and a $7.03 million permanent loan. Hawaii Housing Finance and Development Corp. has made available a Rental Housing Revolving Fund loan of $19.7 million. Maui County set aside $2.25 million in the form of a HOME loan as well as $1.35 million from the Rental Housing Trust Fund program.
In 2016, the state Department of Business, Economic Development and Tourism estimated Maui needs the construction of 13,949 housing units between 2015 and 2025 to keep up with growing demand. About 11,512 of those units would need to be allocated for new households.
“Kaiwahine Village will bring much-needed affordable housing to Maui,” said Hunt Capital Partners Executive Managing Director Dana Mayo. “We are pleased to invest in this development, and we are happy to partner with UHC once again.”
Located in a primarily residential neighborhood, the project development would provide two- and three-bedroom units as well as two employee units. Upon completion in early 2020, all homes would include modern amenities, the announcement said.
The project would provide central laundry facilities and recreation areas with a clubhouse and courtyard. The housing complex would be managed by nonprofit managing general partner Ikaika Ohana.
For Kaiwahine Village, Urban Housing Communities is the developer. Moss & Associates is the master contractor. Design Partners Inc. is the architect, and Big Island Housing Foundation is the property management agent.
The project had been a fee-simple development approved by the Maui County Council in 2011. But, in February, it was proposed to switch to a 100 percent affordable rental project.
Some neighbors have expressed concerns about adding traffic to the area.