LIHU‘E — The Homestead Community Development Corporation announced Sunday its purchase of a six-unit apartment building on Halenani Street in Lihu‘e, with the goal of keeping the housing affordable.
“Kaua‘i is our home, Hawai‘i is our home, and its well-being, its economy, the availability of affordable workforce housing is important to everyone,” said HCDC CEO Robin Danner. “These units are important to our county, and they are important to us as a Kaua‘i-serving housing nonprofit.”
The nonprofit is governed by the Sovereign Council of Hawaiian Homestead Associations, a representative policy voice and expert on 203,000 acres of lands set aside for Native Hawaiian homes under the federal Hawaiian Homes Commission Act of 1920.
HCDC was founded in 2009 by SCHHA leaders to focus on affordable housing and economic development statewide, and since then has built homes for low-to-moderate-income families and developed job-creating community projects.
While the nonprofit is mainly focused on Native Hawaiian housing and economic opportunities, Danner, who also serves as SCHHA chair, views this acquisition as part of a broader goal to address housing affordability on the island.
The purchase is an important milestone as the first time a homestead beneficiary association has owned a fee property in Hawai‘i, HCDC reported.
“This is the first off-tribal-lands property to be owned by the SCHHA through our homestead nonprofit,” said Kaua‘i County Councilmember KipuKai Kuali‘i, who is also the SCHHA Policy Committee chair. “We intend to implement affordable housing rental projects in every county across the state — this is just our first!”
The sale closed on Jan. 14 after 756 days on the market.
The apartment building — located at 4277 Halenani St. in Lihu‘e — sold for $825,000 from the previous owner Jim Gair. The purchase was financed by the First Hawaiian Bank through a conventional commercial real-estate loan and an affordable housing investment provided by the Rural Community Assistance Corporation.
The units are all already occupied by tenants, who HCDC hopes will all be able to stay in their homes after a certification process.
“We have committed to not only keep rental rates affordable based on annual (U.S. Department of Housing and Urban Development) published rates but also to rent to low-to-moderate-income tenants, typically in the 80% of area median income,” said Danner.
Area median income is calculated to be $93,400 for a family of four on Kaua‘i, so a family of four making 80% AMI would bring in $81,550 a year, according to the Kaua‘i County Housing Agency.
A blessing of the building is planned on March 26, the 151st birthday of Prince Jonah Kuhio Kalanianaole. Kuhio championed the Hawaiian Homes Commission Act, a federal law setting aside lands in Hawai‘i for the benefit of Native Hawaiians.
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Guthrie Scrimgeour, reporter, can be reached at 647-0329 or gscrimgeour@thegardenisland.com.
