KAILUA-KONA — Two developments intended to provide 170 affordable housing rental units for Kona families and seniors are expected to finish construction and start moving in new residents at the end of next year.
KAILUA-KONA — Two developments intended to provide 170 affordable housing rental units for Kona families and seniors are expected to finish construction and start moving in new residents at the end of next year.
The land for the developments, part of the Kamakana Villages at Keahuolu off Ane Keohokalole Highway, were blessed during a ceremony Wednesday.
“Today, we celebrate the hard work, dedication and teamwork of so many and our deep commitment in being partners for positive change,” said Monika Mordasini Rossen, vice president of development for The Michaels Development Company.
The $52 million developments are divided into two separate projects, which together make up phase one of the planned community.
The first will be the Hale Makana Ohana, a five-building, 85-unit development geared toward families. Of the 85 units, 50 will be one-bedroom and 35 will be two-bedroom.
The second, Hale Makana O Kupuna will provide an additional 85 units for seniors — 80 single-bedroom and five two-bedroom — and will also be spread across five residential buildings.
Each development will also include laundry facilities and a single-story community center building.
The names refer to the gifts of housing for families and seniors, said Rossen.
“The names of the communities represent the true gift of housing that’s being brought here today,” said Rossen. “It’s a gift that keeps on giving as will the gift of affordable housing continue to give forward and forward for generations to come.”
Future development residents will have to meet certain income requirements to be eligible for any of the rental units.
The developments have maximum household income limits that are based on the area’s median income as determined each year by the U.S. Department of Housing and Urban Development. In 2015, the median income in Hawaii County was $62,200, according to the income schedule released by the Hawaii Housing Finance and Development Corp.
Units in the developments are allocated into three income groups: those with incomes below 30 percent, those with incomes between 30 and 50 percent and those with incomes between 50 and 60 percent. The developers have allocated a certain number of units in each development to each income bracket.
The income limits for residents are also based on household size, with larger households allotted a higher income limit.
The 60 percent threshold for a one-person household is set at $28,680 for a single-bedroom unit, according to the guidelines, while the threshold for a three-person household in that same unit would be $36,840, according to a fact sheet provided by The Michaels Development Company about Kamakana Villages.
Monthly rent for the units will also be guided by family income and will range from $384 per month to $768 for single-bedroom units and $460 to $921 for two-bedroom units, according to the developer.
Among those at Wednesday’s blessing was Ken Van Bergen. Today, he’s the assistant housing administrator for the County of Hawaii, but his connection to affordable housing runs much deeper than that.
“I was raised by a single mother and in my early years, we lived in government housing,” he said.
Being able to grow up in a clean and safe environment, he said, was huge for his family and he’s excited to be a part of today’s affordable housing projects.
“It’s huge and it’s powerful and it’s very, very important,” he said.
Given the cost of housing in the Kona area, even relative to other areas of the Big Island, Van Bergen touted the importance of developments geared toward affordable housing for residents.
“To have 170 units is amazing,” he said. “That is gonna have a huge impact on our local community.”
In total, the two developments are expected to cost about $52 million, paid for through various outlets. Those sources include a HUD/Hawaii County community development block grant as well as loans obtained through the Dwelling Unit Revolving Fund and the Rental Housing Revolving Fund from the Hawaii Housing Finance and Development Corp.
The biggest piece of funding, said Rossen, is the low-income housing tax credit program, which translated to about $17 million for the projects. The Hawaii Housing Finance and Development Corp awarded the tax credits in 2015.
The low-income housing tax credit program, according to the Office of the Comptroller of Currency, encourages investors to put money into the development of affordable rentals by allowing those investors to claim tax credits on federal returns in exchange for their investment.
Stacie Brach, regional vice president of Interstate Realty Management, said they anticipate opening a waiting list in late spring 2017. Interstate Realty Management is the development’s property manager.