Word spread quickly in West Hawaii about the potential sale of the beloved Manago Hotel and the prospect of the iconic restaurant serving the last order of pork chops.
The sale has not been finalized, but Mental Health Kokua, a nonprofit organization, was awarded $5.5 million in County of Hawaii Affordable Housing Production Program funds to acquire the hotel.
The Manago Hotel was founded by Kinzo and Osame Manago in March 1917.
During World War II, the military contracted Manago to feed the soldiers who, at the time, occupied Konawaena School. It was then turned over to the next generation, Harold and Nancy in 1942. After the war, Harold purchased the land beneath the hotel to expand in acreage and guest rooms. They managed the business for 42 years. In 1984, Harold and Nancy’s youngest son Dwight, and wife Cheryl, took over the hotel and continued to run the family business.
MHK plans to covert 72 units in the hotel into affordable workforce rental housing.
The proposed project includes 67 studios, two one-bedroom, and three two-bedroom units. These units will be available to households earning no more than 140% of the AMI, currently $112,980 for a family of two.
According to the Hawaii County Affordable Rent Guidelines, rent is to be based on 30% of income. The units will forever remain affordable.
Manago Hotel is not closing at the end of the month, despite rumors circulating in the community, according to MHK CEO Greg Payton in a prepared statement. Once the acquisition is complete, the Affordable Housing Production Program requires MHK to rent rooms to members of the workforce. MHK plans to transition the hotel to workforce housing while the units are occupied.
Peyton said the Manago Hotel restaurant will not be closing.
He said the Manago family has tentatively agreed to share their signature recipes, including their famous pork chops.
“Our plan is to provide much-needed workforce housing and to continue the legacy of the Manago restaurant,” said Payton.
Minor renovations to transition the hotel to workforce housing will commence after the close of sale. Updates on the project will be provided by MHK as they become available.
Neither Payton or Manago’s responded to requests for further information.
The county Office of Housing and Community Development is currently finalizing grant agreements and environmental reviews for each of the projects funded, including the acquisition of Manago Hotel.
Once grant agreements are executed in the next few months, funds will be released allowing the purchase to move forward.
The acquisition of the commercial space at the hotel, which includes the restaurant and potato chip factory on its southern end, is not funded by Affordable Housing Production Program monies according to the Office of Housing and Community Development. MHK will use other funding sources to cover acquisition of the commercial space.
According to the administrative rules, activities funded to increase affordable housing units, such as design, acquisition, infrastructure and new construction, shall be complete within one year and result in occupancy of affordable housing units within five years from the date the grant agreement is executed.
The Affordable Housing Production Program is the result of Ordinance 22-77, passed by the County Council in June 2022, and signed into law by Mayor Mitch Roth. The law appropriates a minimum of $5 million per year to the Office of Housing and Community Development to facilitate programs that support, increase, and sustain the supply of affordable rental and owner-occupied housing on Hawaii Island.
Appropriations from two fiscal years were combined into one Request for Proposal for Fiscal Year 2023-24.
Future funding rounds will be for single fiscal year appropriations.
In total seven projects were selected to receive a share of over $17.3 million in funding via the Affordable Housing Production Program for Fiscal Year 2023-24.
In addition to Manago Hotel, funding was granted for three projects in South Kohala, two in Hilo and one in Puna.
