Construction has kicked off on an initial phase of a delayed affordable-housing project on Hawaii island where monthly rent for some apartments will be as low as $384.
The Michaels Development Co. is holding a blessing today on the site of what will become the first increment of residences at Kamakana Villages at Keahuolu — 170 homes for families and seniors with low incomes.
Monika Mordasini Rossen, vice president of development for Michaels, said the company is pleased to produce the homes in partnership with state, county and federal support.
“With a shortage of housing across the state, Kamakana Villages at Keahuolu will provide much needed homes for families and seniors in Kailua-Kona,” she said in a statement.
The 170 homes by New Jersey-based Michaels are part of a master-planned community with 2,330 homes. The first phase of residences was expected to have been started in 2012 and finished in 2014.
The Hawaii Housing Finance and Development Corp., a state agency that facilitates affordable-housing development, selected what is now known as Forest City Realty Trust in 2008 to be the master developer of Kamakana Villages, an estimated $734 million project on 272 acres of state land. But infrastructure work by Forest City took longer and cost more than anticipated.
Ohio-based Forest City arranged for Michaels to build up to five affordable rental projects in the community.
The first two are Hale Makana ‘Ohana for families and Hale Makana ‘O Kupuna for seniors. Each project will have 85 homes and a community center with a computer room, social service space and management offices.
Construction is expected to finish on Hale Makana by the end of next year. Leasing information for prospective tenants should be available in the spring.
Monthly rent for apartments with one or two bedrooms will range from $384 to $921.
Most units will be reserved for households earning no more than 50 percent of Hawaii County’s annual median income, though some will be available to households earning up to 30 percent or 60 percent of the median income. The broad income limit range is from $14,340 to $44,220. Some units also will be subsidized by federal project-based Section 8 vouchers that help pay for rent so that tenants don’t pay more than 30 percent of their income toward rent.
Financing for Hale Makana, which will cost $52 million, was provided by the HHFDC, Hawaii County, the U.S. Department of Housing and Urban Development, and private lenders.
Building Kamakana Villages could take decades, and will include a mix of affordable and market-priced homes. At least half the homes in the community must be reserved at rental or sale prices affordable for low- to moderate-income residents. The community is also programmed for two school sites, 28 acres of park space, 27 acres of open space and about 200,000 square feet of commercial buildings.
