Maui County withdraws EIS preparation notice for Hoʻonani Village housing project

Maui County has withdrawn its submission of an environmental impact statement preparation notice as part of the permitting process for the proposed Hoʻonani Village affordable rental housing project in Puʻunēnē. The county is stepping aside to make way for the state’s Land Use Commission as the project’s “accepting authority.”

In a Sept. 4 letter to the State of Hawaiʻi Environmental Review Program, Maui County Planning Director Kate L.K. Blystone said the department was withdrawing the February submission of a preparation notice because the state’s Land Use Commission “is the more appropriate agency to be the accepting authority for the proposed project’s EIS.” The letter noted the commission would be “involved to a greater extent in decision-making processes relating to the action.”

The developer, Hoʻonani Development LLC, will now work with the Land Use Commission to determine if an EIS is required and resubmit a preparation notice at a later date with the state agency as the accepting authority.

The project is led by developer Howard Kihune Jr., president of ʻĀina Lani Pacific. The conceptual plans for the 1,600-unit multifamily rental and commercial complex were presented to the Maui County Council’s Housing and Land Use Committee in March 2024.

The project is planned for a 165-acre parcel in Puʻunēnē, located between the old Puʻunēnē sugar mill and the Puʻunēnē Shopping Center. Kihune described his vision for the development as a “walkable community” and a “gathering place for local people.”

The development’s plans call for a 50% affordability component. Half of the 1,600 units, or 800 units, would be designated for workforce housing. The developer proposed that the affordable units would be split into three groups, with one-third each for households earning 50% to 80%, 80% to 100%, and 100% to 120% of Maui’s median income. The developer reported considering the option of using Maui County’s residential workforce housing policy to maintain affordability.

The land is zoned for agricultural use. To proceed with the proposed development, developers would need to seek a zoning change, likely to M1 light industrial. This zoning change would permit the construction of multifamily and commercial developments. The project also aims to support small businesses, such as mom-and-pop restaurants, barber shops and bakeries.