This rendering shows the Hale O Pi‘ikea project's three phases. Photo courtesy 3 Leaf Holdings

The team that’s building Hale O Pi’ikea III, the final phase of a three-phase affordable housing development in southwest Maui, has reportedly closed $15.5 million in federal and state financing for the project.

Hunt Capital Partners is working in a partnership with ‘Ikenākea Development, Hawaiian Community Development Board and Mark Development on Hale O Pi’ikea III.

Situated on a 1.93-acre parcel in Kihei, Hale O Pi’ikea III will introduce a mix of one-, two- and three-bedroom housing options for families earning up to 30%, 40% and 60% of the Area Median Income, according to the development team.

Developers say the project’s third phase will add 35 affordable rental homes and one exempt manager’s unit to 187 units that are already under construction, and Hale O Pi’ikea Phase III will offer residents rent-restricted housing, enabling families to save up to 75% compared to market rate rents.

Developers say that Phase III will consist of four two-story garden style residential buildings with shared common spaces including a clubhouse, picnic areas and a playground.

Additionally, the apartments will be equipped with ceiling fans and Energy Star appliances including electric ovens, refrigerators, garbage disposals and washer and dryers.

The community will also feature a range of sustainable initiatives such as storm-resistant building materials, water intrusion prevention measures, solar power systems and water-efficient landscaping and fixtures.

This map shows where developers are building teh Hale O Pi’ikea affordable housing project off Liloa Drive and Piikea Avenue in Kihei. Photo courtesy 3 Leaf Holdings

This map shows where developers are building teh Hale O Pi’ikea affordable housing project off Liloa Drive and Piikea Avenue in Kihei. Photo courtesy 3 Leaf Holdings

The project comes as West Maui is in a housing crisis. The area was reported to be 7,000 available affordable homes shy of what’s needed in 2023 before the loss of approximately 700 affordable units in the August 2023 wildfires.

“Hunt Capital Partners is proud to collaborate once again with 3 Leaf Holdings, Hawaiian Community Development Board, and Mark Development to bring much-needed affordable housing to residents in Maui,” Hunt Capital Partners Funds Management Managing Director John Lee said in a news release. “By reducing housing costs, families can allocate resources and focus more on other vital needs that foster improved health outcomes like healthcare, education and nutrition.”

Developers also say residents will benefit from free, on-site services ranging from financial literacy and money management programs to homeownership education and parenting programs.

One of the housing units will also be set aside for a household experiencing homelessness and will receive specialized case management through Mālama Nā Makua A Keiki.

The development team consists of ‘Ikenākea Development as managing general partner, HCDB as co-managing general partner, and Mark Development, Inc. as the administrative general partner and property management agent. Moss & Associates, LLC is the general contractor and Design Partners Incorporated is the architect of record.

Hale O Pi’ikea Phase III will be financed, in part, with $10.3 million in federal 9% Low-Income Housing Tax Credits and $5.2 million in Hawai’i state LIHTC.

Bank of Hawai’i provided $12.5 million in construction financing and $3.3 million in permanent financing. Hawai’i Housing Finance and Development Corporation provided $6.8 million in soft financing through its Rental Housing Revolving Fund.

The County of Maui provided $3.5 million in soft financing sourced from a HOME loan, an American Rescue Plan loan, and a Housing Trust Fund loan. HCDB provided $1.9 million in soft financing through its Affordable Housing Fund grant.