Key financing has been secured for a 200-unit affordable housing development in Hawaii.
In partnership with developers Ikaika Ohana and Urban Housing Communities, Hunt Capital Partners announced the closing of $69.71 million in federal low-income housing tax credit (LIHTC) equity and $26.97 million in state LIHTC equity financing for the construction of Kaiāulu o Kūku’ia.
The apartments, which will be spread across 25 two-story buildings, will be located in Lahaina on Maui.
“The shortage of affordable housing across Hawaii severely affects the quality of life for those at or below the poverty guideline,” said Dana Mayo, executive managing director of Hunt Capital Partners. “This development meets a critical need for affordable housing and shortens commuting times for many, while it also empowers residents to better allocate their limited financial resources to other important needs, such as food and education.”
His firm plans to facilitate the federal and state LIHTCs through multiple multi-investor tax credit funds and three proprietary funds with local banks.
Other funding partners involved in the $163 million project include the Bank of Hawaii and Central Pacific Bank, which provided an $83.6 million tax-exempt construction loan and a $21 million tax-exempt permanent loan. Hawaii Housing Finance and Development Corp. (HHFDC) provided a $37 million soft loan from its Rental Housing Revolving Fund. Ikaika Ohana will provide a soft loan of $2.5 million via HHFDC’s Dwelling Unit Revolving Fund.
The community will feature 100 two-, 72 three-, and 25 four-bedroom units restricted to households earning up to 30%, 40%, 50% and 60% of the area median income (AMI), as well as three managers’ units. Units will have balconies/patios, blinds, vinyl flooring, ceiling fans, central heating and air conditioning.
Residents will also benefit from social and education programs that may include immunizations and health screenings, child care, GED and ESL classes, occupational certification courses, resume preparation and job referrals, and financial counseling. These programs may be held at an on-site community room, through a nearby school or community center, or other locations.
Design Partners is the project architect. ThirtyOne50 Management will be the management agent. The general contractors include Maryl Group Construction and Goodfellow Bros.