A nonprofit developer has started to build an affordable rental housing complex for families on Hawaii island where monthly rents are projected to be as low as $350.

The Honolulu-based Coalition for Specialized Housing recently broke ground on the 110-unit project in Waikoloa Village largely financed by a state agency that helps produce affordable housing.

Work to arrange the $45 million project dates back at least three years.

“It was a long process and we would not be at this point without the support from the state and county,” Andrew Furuta, the project’s coordinator, said in a statement.

Specialized Housing mainly received a mix of bonds, a loan and federal and state tax credits through the Hawaii Housing Finance and Development Corp., a state agency, to fund the project, slated for completion in the spring of 2023.

Units with one or two bedrooms spread throughout 18 two-story buildings will be reserved for families earning no more than 60% of the median income on Hawaii island. Income limits today would equate to $40,020 for a couple, $45,000 for a family of three and $49,980 for a family of four.

Initial monthly rent is projected to be about $800 for 71 two-bedroom units and about $600 for 33 one-bedroom units for households earning up to 60% of the median income. There also will be six one-bedroom units reserved for households earning no more than 30% of the median income and renting for $350 a month initially.

Rents will adjust with Hawaii island’s median income but must remain affordable for 61 years.

Specialized Housing was formed in 1989 to develop affordable housing on the site of the Hale Mohalu care home for Hansen’s disease patients on Oahu. That 210-unit project in Pearl City was completed in the 1990s, and the nonprofit completed additional phases on the site with about 330 more apartments between 2013 and 2015.

Waikoloa Family Affordable is the first project other than Hale Mohalu for Specialized Housing, which was formed by Wally Inglis, a former priest and friend of Hale Mohalu residents.

“We are thankful for and appreciate all of the assistance we received to make this project possible,” Inglis said in a statement. “Waikoloa Family Affordable will be our first project on the Big Island, and will help meet the growing need for affordable housing for Hawaii families.”