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Nonprofit developer looks to build 89-unit W. Maui rental project

Housing geared toward families at 60% or less of area median income

Doug Bigley, president of Ikaika Ohana and an executive officer of UHC Communities, announced the updated plans for an 89-unit affordable rental complex, which would require an additional $3.7 million in county funds. The Maui News / DAKOTA GROSSMAN photo

LAHAINA – A proposal to build an 89-unit affordable rental complex in Lahaina is on a “very aggressive schedule,” with hopes of starting construction by next spring and securing an additional $3.7 million in funding from the Maui County Council, the developer said.

West Maui residents, three of whom testified Wednesday night at the Kaunoa Senior Center in Lahaina, were generally supportive of the proposed plans for the Kaiaulu o Kupuohi Apartments off Kupuohi Street.

“Lahaina needs affordable housing. Nobody is shocked by that,” said Doug Bigley, president of Ikaika Ohana and an executive officer of UHC Communities, which oversees project feasibility, planning and financing.

“There is also a lack of development-ready projects.”

Ikaika Ohana is a nonprofit affordable housing developer, social service coordinator and asset management company that works with the state and private companies to develop housing. The nonprofit has “already committed” to building 89 affordable rentals on 2.1 acres below the Lahaina bypass but needs additional funding from the county. The housing complex would include one-, two- and three-bedroom units, ranging from $443 to $1,333 a month.

Lori Tsuhako

Bigley spoke Wednesday night to about 20 residents and the members of the County Council’s Affordable Housing Committee to review updated project plans. He notified them that around 89 percent of the funding, or $50.4 million, is coming from other sources, such as federal and state funds, including the Hawaii Housing Finance and Development Corp.

The $3.7 million that Ikaika Ohana is requesting from the county would account for the other 11 percent of the total funds.

The Affordable Housing Committee has not yet voted on additional funding, and no agendas have yet been posted to discuss the item.

The project is formerly known as Kai Mauka Ike Nui and is commonly referred to as the “Star Noodle project,” though the project is not affiliated with the restaurant or its owners.

Lori Tsuhako, director of the county Department of Housing and Human Concerns, said that the initial project proposal was to create 59 rental units for families earning 60 percent or less of the area median income, and 24 to 29 market-rate rental units. The market-rate rentals were originally going to be funded without the use of county funds.

“In the meantime, between the initial proposal and tonight’s hearing, Mr. Bigley has been able to make some arrangements for the sale of the market-rate units,” Tsuhako said. “So he’s proposing to take out the market-rate units and add affordable units, for a total of 89 affordable rental units.

“So I’m here to say that the mayor has supported this project. . . . This project accomplishes a lot of what we need in our community.”

Bigley explained that the funding that Ikaika Ohana is seeking from the county would help cover the cost of keeping the additional units affordable. He said that construction of the apartments may begin by March 2020, and that if everything goes as planned, they would be completed 14 months later.

They hope to secure financing by August since an application was submitted in February to HHFDC.

The main qualification for the Kaiaulu o Kupuohi Apartments is income, which would be for families earning 60 percent or less of the Lahaina area median income, according to the proposal.

For example, the cost of a two-bedroom unit for a family of four with an annual income of $29,280, or 30 percent of the median income, would be about $511 per month. For a family with an annual income of $39,000, or 40 percent of the median income, the same unit would be about $731 per month. And, for a family earning about $58,560 a year, or 60 percent of the median income, it would cost about $1,333 a month. (There are no units specifically restricted to 50 percent of the area median income, so families who earn income at that level can qualify for the 60 percent level.)

The project would have 20 one-bedroom, 34 two-bedroom and 35 three-bedroom units available.

Bigley said that sewer and water services have already been allocated on the lot.

“What makes this project particularly attractive is that (Bigley) has been able to use the initial investment accounting funds and leverage those funds to attract the need from other sources so that the county is paying a small portion of funding project needs total,” Tsuhako added. “For those reasons, we support the project.”

While the committee and testifiers were generally supportive of the proposal, they asked questions about how the project would address traffic in an already congested area, especially with the neighboring Keawe Street project — a 200-unit rental apartment complex that Ikaika Ohana plans to build off Keawe Street — in the works. Bigley had estimated that project would be completed by 2022.

He added that the goal of the Kupuohi Street housing project is to actually “reduce traffic” by providing residents homes closer to their jobs.

“I know there is a lot of traffic there, but one of the mitigators is that this has 100 percent affordable housing,” Bigley said. “One of the hopes of affordable housing is that it will reduce the number of trips that somebody would have to take on the road. . . . One of the principle goals, among many others, is that you would be able to get to work by walking or biking, or by other means, rather than by car.”

Adjustments to the Lahaina bypass and the Keawe Street entrance were suggested.

For more information, visit ikaikaohana.org or email Tom Fischer of Ikaika Ohana at tfischer@uhcllc.net. A video of the meeting will be available for viewing at http://mauicounty.us/agendas. (Select “Affordable Housing Committee” to view committee agendas and videos.)

* Dakota Grossman can be reached at dgrossman@mauinews.com.

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