Sixty affordable single-family homes are being built for Native Hawaiian households with the help of low-income housing tax credits (LIHTCs).
Hunt Capital Partners, in collaboration with Ikaika Ohana and Urban Housing Communities, announced the closing of $16.6 million in federal and $7 million in state low-income housing tax credit equity financing for the construction of the Villages of La‘i ‘Opua in Hawaii.
Located in Kailua-Kona, the development is part of a master-planned community situated on 572 acres of land allotted for commercial, community, conservation, and residential use.
Villages of La‘i ‘Opua will be restricted to Native Hawaiian households who earn up to 30%, 40%, and 60% of the area median income.
According to the Department of Hawaiian Home Lands, there are about 5,800 Native Hawaiian households on the waiting list for Villages of La‘i ‘Opua, indicating strong rental demand. The single-family homes will also be under the Villages of La‘i ‘Opua Association, which oversees single-family homes to the north and northwest as well as future single-family development sites to the east and southeast.
When the 15-year LIHTC compliance period is over, the managing general partner has agreed to sell the units to qualified tenants, and the tenants will have a first right of refusal purchase option.
“We are happy to invest in Villages of La‘i ‘Opua and partner with Ikaika Ohana and Urban Housing Communities once again,” said Hunt Capital Partners executive managing director Dana Mayo. “They are experienced affordable housing developers in the Hawaiian market with a track record of success. About 40% of Native Hawaiian households are cost burdened, and 15% experience overcrowding. Villages of La‘i ‘Opua will serve to alleviate some of that burden by providing more affordable housing options to Native Hawaiians.”
The development team also includes Coastal Construction Co. as general contractor, Design Partners, Inc., as project architect, and ThirtyOne50 Management as property manager.
When completed, Villages of La‘i ‘Opua will provide 27 two-, 26 three-, and six four-bedroom units as well as one three-bedroom exempt manager’s unit. All homes will include a lanai as well as modern appliances and amenities. Construction is scheduled for completion in October 2021.
The total development cost for Villages of La‘i ‘Opua is $37.96 million. Hunt Capital Partners facilitated the federal tax credits through its multi-investor fund, Hunt Capital Partners Tax Credit Fund 37. The state tax credits will be syndicated through Fund 37, with Monarch Private Capital as the investor, and through Hunt Capital Partners Tax Credit Fund 38, a proprietary fund. American Savings Bank provided a $19.87 construction loan and a $1.55 million permanent loan. The Department of Hawaiian Home Lands provided a $5 million Housing Trust Fund loan. Hawaii Housing Finance and Development Corp. provided a $7.62 million Rental Housing Revolving Fund permanent loan.
