Maui Business

$12.6 Million for Maui Affordable Housing Awarded

November 16, 2011, 2:51 PM HST
* Updated November 16, 3:28 PM
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By Sonia Isotov

The Hawai’i Housing Finance and Development Corporation (HHFDC) has announced the award of $27 million in tax credits to housing developers of affordable rental units on Oahu and Maui.

The Low Income Housing Tax Credits (LIHTCs) that HHFDC allocates are a crucial financing tool used by both private and nonprofit housing developers in the construction or rehabilitation of thousands of affordable rental units throughout Hawai’i.

This year, HHFDC awarded tax credits to 10 properties. Two of these projects are being jointly developed and managed by EAH Housing, a Hawai’i based affordable housing manager and developer. With the support of LIHTCs, EAH and its partners, DBR Development, LLC, Horizon Development Consulting, LLC and Affordable Housing Specialists Group, LLC, will construct 28 new rental apartments in Wailuku, Maui. Vitus Development, LLC and EAH will rehabilitate the 64 unit senior housing community, Kahuku Elderly Hauoli Hale on Oahu.

On Maui, the LIHTC supported development will be called Imi Ikena Apartments. Consisting of 28 rental apartments, Imi Ikena will provide housing for families in Wailuku, allowing residents to live close to the Kahului Public Library and Maui Community College. The new community will consist of two- and three-bedroom apartment homes with floor plans that are suited for both small and multigenerational families.

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“We are excited to be able to bring much needed affordable housing to Maui,” said David Billings, founder and President of DBR Development, LLC, in a written statement. “There is such a need for affordable homes in this centralized Wailuku location. After almost four years of laying the groundwork for this Tax Credit award, it is very heartening to see our passion for housing working families come closer to fruition.”

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The tax credit award creates an equity investment of more than $8 million, which will pay a majority of the $12.6 million development costs for Imi Ikena.

“Public-Private Partnerships (PPPs) are essential to the production of workforce/affordable housing and the LIHTC program remains a chief financing tool,” said Karen Seddon, Executive Director of HHFDC. “These projects not only increase the inventory of much-needed affordable units, but also help stimulate the local economy and create construction jobs.”

On Oahu, EAH Housing will team up with Vitus Development, LLC to improve the selection of housing for older adults by acquiring and rehabilitating the Kahuku Elderly Hauoli Hale community. The 64 unit property is located in an Enterprise Zone in rural Oahu, where there is a very limited supply of older adult housing.

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LIHTCs will support over $8 million of the project’s $15.2 million total cost. As part of the rehabilitation work, Vitus and EAH Housing will install Energy Star water heaters, appliances, light fixtures, and solar panels which will provide power for the property’s common areas.

For more information on EAH Housing visit www.eahhousing.org.

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