Tax Credit Financing Secured for 89-Unit Kaiāulu O Kupuohi Development in Lahaina, Maui
Hunt Capital Partners, in collaboration with Ikaika ʻOhana and Urban Housing Communities LLC, announced the closing of $21.9 million in federal and $8.1 million in state low-income housing tax credit equity for the new construction of Kaiāulu O Kupuohi in Lahaina, Maui.
The total development cost for Kaiāulu O Kupuohi is $64.6 million.
The five-story high-rise complex will offer 89 units to moderate and very low-income families.
Kaiāulu O Kupuohi is located at 187 Kupuohi Street in a mixed-use neighborhood consisting of residential, commercial and undeveloped land. The development is makai of the Lahaina Bypass, south of Keawe Street, and north of the Kelawea Mauka III Park. Land use to the west of Kaiaulu O Kupuohi consists of commercial/retail uses, including Trilogy Excursions, Volvano Cratoes, Alchemy Maui by BIK, and Tamura’s Fine Wine and Liquors.
Construction began in December 2020. Once completed in June 2022, Kaiāulu O Kupuohi will provide 20 one-bedroom, 34 two-bedroom, 34 three-bedroom, and one three-bedroom exempt manager’s unit for households who earn up to 30, 40 and 60 percent of the area median income.
Units will have balconies/patios, vinyl flooring, quartz countertops, central air conditioning and modern appliances. Some apartments will also feature oceans views. Community amenities include a clubhouse, courtyard, picnic area, playground, elevators, on-site management and central laundry facilities.
“Rising housing costs, higher transportation fees, offshore buyers purchasing homes, and high material import costs have all contributed to the housing shortage felt acutely by low-income families in Maui county,” said Hunt Capital Partners Executive Managing Director Dana Mayo. “We are glad Kaiāulu O Kupuohi will bring more affordable housing options to the island of Maui. It takes a village to bring such a large development to fruition. We thank UHC, Ikaika ʻOhana and our financial partners for their hard work to close this deal.”
The managing general partner is an affiliate of UHC and the co-general partner is an affiliate of Ikaika ʻOhana. Goodfellow Bros. LLC and Maryl Group Construction Inc. are the general contractors. Design Partners Incorporated is the project architect. ThirtyOne50 Management LLC is the management agent.
Hunt Capital Partners facilitated the sale of federal and state tax credits through Hunt Capital Partners Tax Credit Fund 29, a proprietary fund with the Bank of Hawaiʻi, and Hunt Capital Partners Tax Credit Fund 41, a multi-investor fund. Other funding sources include the Bank of Hawaiʻi, who provided a $27.6 million construction loan and an $8.2 million construction to permanent loan.
The Hawaiʻi Housing Finance and Development Corporation provided $17.1 million in Rental Housing Revolving Funds. Maui County provided a $6.4 million permanent loan. Ikaika ʻOhana provided a $725,952 permanent loan.