Key financing has been arranged for the construction of the Villages of La‘i ‘Ōpua Phase II, an affordable housing development that will be located in Kailua-Kona, Hawaii.
Hunt Capital Partners (HCP), in collaboration with Urban Housing Communities (UHC) and Ikaika ‘Ohana, announced the closing of $10 million in federal low-income housing tax credit (LIHTC) equity and $3.8 million in state low-income housing tax credit equity financing for the development.
Villages of La‘i ‘Ōpua Phase II will provide 24 single-family, affordable homes for Native Hawaiian households who earn up to 30%, 40%, and 60% of the area median income. Additionally, at the end of the initial 15-year LIHTC compliance period, the affordable homes will be sold to qualified buyers, with tenants at the development having a first-right-of-refusal purchase option.
The Department of Hawaiian Home Lands (DHHL) has a waiting list of approximately 5,800 Native Hawaiian households in need of housing. The Villages of La‘i ‘Ōpua Phase II helps to meet this need and is part of a master-planned community that includes 572 acres, comprising land designated for commercial, community, conservation, and primarily residential uses, according to project officials.
The first phase featured 59 single-family LIHTC units and is 100% occupied.
“The demand for affordable housing for Native Hawaiians couldn’t be more evident, and we are proud to invest in the Villages of La‘i ‘Ōpua Phase II to meet this immediate need in the Kailua-Kona community,” said HCP executive managing director Dana Mayo. “Hawaii has been a priority investment location for Hunt Capital Partners for many years. To date, we have financed 19 transactions in Hawaii that have built over 850 affordable housing units. We look forward to financing more developments in the future to continue to increase the affordable housing stock across Hawaii.”
The 24 three- and four-bedroom homes will be furnished with modern appliances and will have a lanai, hardwood floors, central air conditioning, ceiling fans, and other amenities.
Villages of La‘I ‘Ōpua Phase II is designed to meet the 2018 Energy Conservation Code of Hawaii, and the development team aims to achieve LEED Gold certification. The units will be built with sustainable features, such as Energy Star-rated appliances, HVAC equipment and ventilation, LED lighting, building envelope insulation, and low-E windows. Additionally, domestic hot water will be provided by solar water heaters with electric backup.
As far as resources for residents, Ikaika ‘Ohana will collaborate with community-based organizations to create social and education programs that address the specific needs of the community. Programs may include immunizations and health screenings, child care, GED and ESL classes, occupational certification courses, resume preparation and job referrals, and financial counseling. Services will be offered to residents from an on-site community room, through nearby schools and community centers, or even to specific residents within their individual apartments.
The total development cost for Villages of La‘i ‘Ōpua Phase II is $18.4 million. HCP facilitated the federal and state tax credits through its proprietary investor fund, Hunt Capital Partners Tax Credit Fund 47, with Central Pacific Bank. Central Pacific Bank also provided an $11.1 million construction loan and an $850,000 permanent loan. Hawaii Housing Finance and Development Corp. provided a $2.6 million soft loan from its Rental Housing Revolving Fund. DHHL provided a grant of $31,793.
UHC and Ikaika ‘Ohana’s development team includes Coastal Construction as the general contractor. Design Partners Incorporated is the architect, and ThirtyOne50 Management is the property manager.