The Hawaii County Council’s Legislative Approvals and Acquisitions Committee will hear a presentation Tuesday at 11 a.m. about a request to extend the construction deadline for a 64-unit affordable housing development in Hilo.
Bill 88, introduced by Councilwoman Heather Kimball at the county’s request, proposes amending previous zoning ordinances to grant a five-year extension for the Kaiaulu O Kapiolani affordable rental housing project in Kukuau 1st subdivision.
The project, proposed by Ikaika Ohana, includes 63 income-restricted rental units for households earning between 30% and 60% of the area median income, plus one unrestricted manager’s unit.
The site plan calls for 28 two-bedroom, 29 three-bedroom and seven four-bedroom units across nine two-story buildings. Planned amenities include a community center, play area, two laundry facilities, community gardens and 117 parking stalls, including five designated for handicapped access.
The project has remained behind schedule. A previous assessment stated construction was estimated to begin in the first quarter of 2022, with final completion by April 2023.
The 5.05-acre property at 350 Kapiolani St. was rezoned from single-family and high-density residential to multi-family residential under Ordinance 10-32.
The property is owned by Giampaolo Boschetti, who owns multiple properties throughout Hilo.
The proposed amendment would update that ordinance, extending the construction deadline from March 2026 to March 2031, allowing more time to secure funding and address potential delays.
In addition to the five-year extension, the updated ordinance allows the deadline to be paused while the developer awaits required government permits or plan approvals, provided proper documentation is submitted.
The principal officers of Ikaika Ohana are members of the Bigley family, who have been proposing this project for more than three years.
The developer is seeking $40.7 million in state and federal tax credits and $38.3 million in federal tax-exempt bonds from the Hawaii Housing Finance and Development Corporation. A funding decision was expected by August 2025, with construction projected to begin no later than January 2026 and take an estimated 18 to 24 months.
County Planning Director Jeff Darrow will present the proposal to the committee on Tuesday. The Windward Planning Commission previously reviewed the request and forwarded it with a favorable recommendation to the County Council.
The ordinance includes several conditions for the development, including maintaining water commitments, meeting parking and landscaping requirements, connecting to the county sewer system and submitting a solid waste management plan. A drainage study is required to ensure stormwater runoff is handled onsite.
The project also must file annual progress reports with the Planning Department until all conditions are met. If conditions are not fulfilled or a time extension is not requested, the property’s zoning could automatically revert to its previous designation.
The ordinance requires the developer to pay a fair-share contribution to support county infrastructure and services such as parks, roads and public safety. However, these fees may be conditionally waived if the development meets requirements outlined in an affordable housing agreement.
Patricia Tummons, editor of Environment Hawaii, expressed skepticism about the project’s viability in a Thursday interview with the Tribune-Herald.
“The problems that stymied the previous developer have not changed,” Tummons said. “There’s, first and foremost, drainage. The entire area floods in heavy rains. The soil has been described by the USDA as muck.
“The right-in, right-out entry/exit onto Kapiolani Street will only divert more traffic onto Kukuau and create yet more congestion at the already difficult-to-navigate intersection of Kukuau and Kapiolani. As a previous environmental assessment showed, connecting to a sewer line is problematic since the nearest main is on Kukuau, and whether it has sufficient capacity is not a settled matter.
The owner has been trying to off-load this property for years without success.”
Grant Bigley, the vice president of Ikaika Ohana, could not be reached in time for this story.
Email Daniel Farr at dfarr@hawaiitribune-herald.com.