Nā Hale O Maui blessed a new project Wednesday in Kahului that will bring seven permanently affordable four-bedroom homes to local families through a unique community land trust model.

The Fairways at Maui Lani project, located at 120 Puʻumakani St., marks a milestone for the nonprofit as it shifts toward new construction to combat island real estate market prices, which now top $1 million for single-family homes. The seven lots cover approximately 1.4 acres, across the street from temporary housing units for wildfire survivors.

Maui County granted the seven lots in May 2024 to provide affordable workforce housing for low- to moderate-income residents. Nā Hale O Maui owns the land and leases it to homeowners. Maui’s high real estate prices are well out of reach for most Maui residents, including teachers, police and firefighters.

Nā Hale O Maui Executive Director Carrie DeMott said the nonprofit’s community land trust model keeps homes affordable by separating the cost of the land from the structure. Homeowners purchase the house and enter a 99-year renewable lease for the land, currently starting at $45 a month.

“Community land trusts take the cost of the land away from the cost of the house, making it more affordable,” DeMott said.

For a family earning a typical local income, this model provides a path to ownership that would otherwise be out of reach. DeMott estimated the homes will be priced between $425,000 and $525,000, tiered based on area median income categories.

Construction is expected to take approximately six months, with the first homes potentially completed by the end of the year. Lehua is serving as the contractor for the project.

Sandra Duvauchelle, owner of project contractor Lehua Builders, said affordable housing projects are “a huge passion” for her family-owned company, which was established in 2005.

“We’re really excited,” Duvauchelle said before a groundbreaking ceremony and blessing Thursday afternoon. “I love the Nā Hale O Maui format where they’re for-sale houses, and very much affordable.”

The general contractor will deliver high-quality homes “like we were going to move into them,” she said.

All of the homes will have four bedrooms and 2.5 baths, she said. There will be five single-story homes and two two-story homes, all with brand new stainless steel appliances. Flooring will be luxury vinyl plank, and bathrooms will have tile.

Under the land trust agreement, the properties must remain owner-occupied as primary residences and cannot be used as investment properties or short-term rentals.

When a family decides to move, the home is sold at a price dictated by a resale formula. This allows the owner to earn equity while ensuring the home remains affordable for the next qualified buyer.

Nonprofit board member Jen Mather moved into a Nā Hale O Maui home in the Kehalani Subdivision in July 2024 after her family struggled to find affordable housing for nearly 10 years.

“I know what it is to want to be in a place where I’m cosmically connected, and I want to put forward the opportunity to others like me,” she said.

Homeownership has been life-changing, she said.

Before she owned a home, “there was always this latent anxiety about renting,” she said. “I have children. I have pets.”

Then, after moving into her own home, that anxiety was gone, she said. “It’s amazing.”

And now her children, now ages 16 and 17, also have an opportunity for homeownership, she said.

The Fairways project is funded in part through the County of Maui’s Affordable Housing Fund. DeMott noted that the county is increasingly looking at deed-restricted properties to preserve affordability in perpetuity.

Prospective buyers must complete a four-step program, including homebuyer education courses, to qualify for the program. DeMott said the organization focuses on ensuring families are financially prepared for the responsibilities of ownership.

“It really matters. I think for the kids,” DeMott said. “The house became like a true ʻohana for the family, like a secure place for people to go. It’s definitely life-changing.”