The County Council Committee on Legislative Approvals and Acquisitions will meet today to discuss a resolution allowing an affordable housing developer exemptions to certain code requirements.
The Kuakini Heights Affordable Housing project is proposed to be built in the heart of Kona, behind Lowe’s Home Improvement, by the affordable housing developer Ahe Group located in Kailua, Oahu.
Ahe is proposing 100 rental units for residents who fall in the 30% to 60% of Hawaii County median income, which ranges from $39,200 to $78,400 for a family of four.
The proposed project includes 14 one-bedroom, 72 two-bedroom and 13 three-bedroom units that would be built on a 10-acre parcel off Malulani Drive on land owned by SCD Kona 108 LLC.
Rezoning of the acreage in 2006 for residential development triggered affordable housing requirements. Chapter 11, Hawaii County’s Affordable Housing Policy, mandates the inclusion of affordable housing in and throughout various market developments. The rezoning of parcels triggers Chapter 11.
Adjacent to the affordable housing development, SCD Kona 108 LLC plans on developing 97 market rate units.
The council resolution states the majority of developed residential units for the project site shall serve as affordable housing, as approved by the county Office of Housing &Community Development, and the market rate residential development cannot exceed 49% of the overall development of the site.
Ahe is seeking exemption from Hawaii County Code provisions for setback requirements, grading permit fees, building permit fees, and loading zone stall height requirements, as well as exemptions from change of zone conditions, time constraints on completion of construction, the development of a Salvation Army Complex, fair share contributions, and impact fees.
Ahe Group President Makani Maeva said confusion arose after a West Hawaii Today story reported Kona Three LLC, developers of the controversial proposed 450-unit Kona Vistas multiple-family housing project planned mauka of Queen Kaahumanu Highway, between Kona Vistas and Pualani Estates subdivisions, claimed they were working with Ahe.
In Kona Three’s annual report submitted to the state Land Use Commission by principal Richard Wheelock last week, the developer still contends the affordable housing credits needed to satisfy their obligation comes from the proposed affordable housing project.
“Kona Three principals arranged a donation of 10 acres of land above Lowes in Kona to Makani Maeva’s affordable housing development entity in return for payment from the Kona Three principals to the landowner. Makani Maeva agreed to convey 67 Affordable Housing Credits to Kona Three for use at Royal Vistas and Kona Vistas, and is moving forward with her new 100-unit affordable rental project ‘Kuakini Heights’ on the 10 acres,” reads the 2023 annual report.
Wheelock was listed as a principal of SCD Kona 108 when that developer was seeking a zoning change for the property above Lowes in 2006.
Kona Three claims it signed a new housing agreement confirming that 67 affordable housing credits would fulfill the affordable housing obligations of the Kona Vistas project.
However, Maeva strongly denies any involvement with Kona Three or their housing credits.
“The entity that we are acquiring the property from is SCD Kona 108. They just confirmed that they own no other property in Hawaii. As we discussed, there is no relationship between these two projects. There is no agreement to satisfy the affordable housing requirements at Kona Vista in any way,” she told West Hawaii Today. “For background, I have affordable housing credits from the construction of the 306 unit Lokahi project.
“Kona Three approached us for 67 AH credits, but at the time, we didn’t know what project they were intending to use the credits for. When we understood the intention was to use the credits for a controversial project, Kona Vistas we made it clear we have another project in the works, Kuakini Heights, and we could not be involved in a politically charged project. We have no relationship with Kona Three. We have no commitment to sell Kona Three affordable housing credits. We simply trying to get … approval for our 100 unit Kuakini Heights project which is 100% affordable for 61 years for those residents making less than 60% of the AMI.”
Kona Three will be appearing before the Land Use Commission today in attempts to clarify the affordable housing credit confusion amongst other subjects related to Kona Vistas.
