Hunt Capital Partners announced work on the final phase of the Hale O Pi‘ikea affordable housing development in South Maui. Located in Kīhei, Hale O Pi‘ikea III will introduce a mix of one-, two-, and three- bedroom housing options for low-income families earning up to 30%, 40%, and 60% of the Area Median Income. Phase III adds 35 affordable rental homes and one exempt manager’s unit to its 187 units that are already under construction, offering a total of 223 affordable homes for families and seniors who make a range of incomes.
The project is made possible through partnerships with ‘Ikenākea Development, Hawaiian Community Development Board, and Mark Development.
Hale O Pi‘ikea Phase III aims to deliver urgently needed affordable housing to residents in Maui County, an area that has continued to grapple with a chronic housing shortage. In West Maui, an estimated shortfall of 7,000 available affordable homes was reported in 2023, a situation that was later intensified by the loss of approximately 700 affordable units due to the Lahaina wildfires.
Hale O Pi‘ikea Phase III will offer residents rent-restricted housing, enabling families to save up to 75% compared to market rate rents, according to a news release announcement.
“Hunt Capital Partners is proud to collaborate once again with 3 Leaf Holdings, Hawaiian Community Development Board, and Mark Development to bring much-needed affordable housing to residents in Maui,” said Hunt Capital Partners Funds Management Managing Director John Lee. “By reducing housing costs, families can allocate resources and focus more on other vital needs that foster improved health outcomes like healthcare, education and nutrition.”
Situated on a 1.93-acre parcel, Hale O Pi‘ikea Phase III consists of four two-story garden style residential buildings with shared common spaces that include a clubhouse, picnic areas and a playground. The apartment homes will be equipped with ceiling fans and Energy Star appliances including electric ovens, refrigerators, garbage disposals, and washer/dryers. The community will feature a range of sustainable initiatives that include storm-resistant building materials and water intrusion prevention measures, as well as the installation of solar power systems and water-efficient landscaping and fixtures.
Residents will benefit from free, on-site services ranging from financial literacy and money management programs to homeownership education and parenting programs. Additionally, one of the housing units will be set aside for a household experiencing homelessness and will receive specialized case management through Mālama Nā Makua A Keiki, an established direct service provider on Maui.
”We are extremely pleased to be working with Hunt Capital Partners on the 3rd Phase of our Hale O Pi‘ikea Affordable Housing community located in Kīhei,” said ‘Ikenākea Development Principal Chris Flaherty. “Hunt Capital Partners brings a great team to the table in sourcing the right investors for our projects. They understand Hawai‘i and the differences that exist between islands and their communities and provide us a great strategic partnership that we value.”
The development team consists of ‘Ikenākea Development as managing general partner, HCDB as co-managing general partner, and Mark Development, Inc. as the administrative general partner and property management agent. Moss & Associates, LLC is the general contractor and Design Partners Incorporated is the architect of record.
Hale O Pi‘ikea Phase III will be financed, in part, with $10.3 million in federal 9% Low-Income Housing Tax Credits (LIHTCs) and $5.2 million in Hawai‘i state LIHTC. Bank of Hawai‘i provided $12.5 million in construction financing and $3.3 million in permanent financing. Hawai‘i Housing Finance and Development Corporation provided $6.8 million in soft financing through its Rental Housing Revolving Fund. The County of Maui provided $3.5 million in soft financing sourced from a HOME loan, an American Rescue Plan loan, and a Housing Trust Fund loan. HCDB provided $1.9 million in soft financing through its Affordable Housing Fund grant.
