After years of delays, the Kaiaulu O Kapiolani affordable housing project in Hilo received a crucial boost Tuesday when the Hawaii County Council’s Legislative Approvals and Acquisitions Committee recommended adoption of a five-year extension — pushing the construction deadline to March 2031 — to keep the development on track.
Grant Bigley, vice president of developer Ikaika Ohana, told the committee via Zoom that a funding decision, initially expected in August, has been pushed to this month. 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.
Despite the delay, Bigley said the project remains on schedule. He also confirmed the completion of a yearlong drainage study, addressing community concerns about potential flooding.
Councilwoman Jennifer Kagiwada asked Bigley, “Are you able to … reassure the public that you are prepared to do whatever’s necessary to make sure that this area will not be flooding and will have adequate drainage for the area and not be pushing off any other runoffs … to potential other areas?”
Bigley responded, “Yes, we’ve done extensive work with multiple civil engineers, hydrology reports, you know, we’ve done everything up until the building permits and the site work level to get the necessary approvals, and the drains will not be an issue.”
The project, located at 350 Kapiolani St. in the Kukuau 1st subdivision, will have 63 income-restricted rental units for households earning between 30% and 60% of the area median income, plus one unrestricted manager’s unit. The development includes 28 two-bedroom, 29 three-bedroom, and seven four-bedroom units across nine two-story buildings.
Amenities will include a community center, children’s play area, two laundry facilities, community gardens and 117 parking stalls — including five handicapped-accessible spaces.
Community members did not offer any oral testimony regarding Bill 88 during Tuesday’s meeting.
The bill is now headed to the full council for a vote.
Email Daniel Farr dfarr@hawaiitribune-herald.com