Council committee backs county support for Hale Makua 100‑unit workforce rental project at Kahului Community Center site

A Maui County Council committee voted 7‑0 on Aug. 4 to recommend adoption of Resolution 25‑139, a nonbinding measure expressing the county’s intent to support a future land transfer or agreement to allow Hale Makua Health Services and Ala Kai Development to build a workforce rental housing project on a portion of the Kahului Community Center park site.

The measure, presented by Wesley Lowe, chief executive officer of Hale Makua, calls for roughly 100 workforce rental units with preference for entry‑ to mid‑level health care and education workers and people displaced by the 2023 Maui wildfires. Rents in the project are proposed not to exceed 30 percent of a resident’s income, and presenters said the project would preserve public access to the Kokua Pool and the Kahului Community Center.

The resolution is intended to allow predevelopment work, including engineering and surveys, and to authorize further county consultation while developers refine property meets and bounds. Hale Makua and co‑developer Ala Kai said they would pursue financing including philanthropic support and state funding programs; presenters named a large philanthropic grant already awarded and said they are negotiating potential support from the Hawai‘i Housing Finance & Development Corporation (HHFDC) and a partnership letter of intent with HMSA for expanded medical services.

Why it matters: The project links housing and workforce development to local health care capacity. Committee members repeatedly framed the proposal as a post‑fire recovery priority that would support kupuna and frontline workers by combining housing, training and clinical pathways to higher wages.

Project history and schedule - Presenters traced planning back to 2018, noting prior county resolutions and a master‑planning process that included a health impact assessment and community surveys. Hale Makua said the project evolved after the August 2023 wildfires and the Maui Economic Recovery Commission discussions. - Hale Makua said it has completed a Certificate of Need with the state health planning authority for an associated health facility and reported a Finding of No Significant Impact (FONSI) for an expanded rehab center in previous reviews. - Developers said preliminary predevelopment work is underway: archeological surveys are in progress and design and engineering efforts continue. They identified the archeological survey as the longest lead item and said the group expects to use the 201H process with HHFDC for approvals and funding.

Funding and affordability Presenters described a capital stack that currently includes a large philanthropic grant (stated in the presentation) and anticipated financial participation by HHFDC (including a DURF/DERF loan referenced by developers). Hale Makua representatives said they would aim to set rents at no more than 30 percent of income and to target entry‑level workers (for example, CNAs beginning around $22/hour with earn‑and‑learn pathways to LPN/RN salaries).

What council members asked and flagged Committee members expressed support for the concept but raised several recurring concerns during Q&A: - Permanence of affordability and land ownership: several members pressed why the county would convey title rather than lease land in order to preserve long‑term affordability; administration staff said conveyance details and deed restrictions would be negotiated and brought back to council. - Scope of ‘‘30 percent’’: members asked whether the 30 percent would include utilities and Wi‑Fi. Developers and HHFDC program rules indicated utilities would be treated as part of rent under many funding scenarios but that final pro formas would specify whether utilities are built into the monthly rent amount. - Preference and Fair Housing limits: developers said they plan to give hiring and occupancy preference to health care and education workers and to work with legal counsel to craft preferences that comply with Fair Housing obligations. - Cost escalation and schedule: presenters warned that construction cost escalation and permitting/review timelines are the primary schedule risks; they estimated roughly four years to completion from building permit stage but said archeology and approvals drive timing before permits. - Amenities, add‑on charges and tenant costs: council members requested clarity at conveyance on parking charges, laundry configuration and any fees that could drive effective housing costs above advertised rents.

Quotes from the meeting - ‘‘The proposed project members would provide approximately a 100 workforce rental units ... Rents will not exceed 30% of a resident’s income,’’ Wesley Lowe, chief executive officer, Hale Makua Health Services, said while introducing the resolution. - ‘‘We are looking to retain this in the county’s hands and to ensure access for the community,’’ Lowe said when describing intent to preserve community use of the pool and center. - ‘‘That’s not something that Kaiann and I made up. That is what HUD suggests people spend on their housing,’’ John Wallenstrom of Ala Kai Development said, referring to the 30 percent rent‑to‑income target. - ‘‘On behalf of the administration, we wholeheartedly support this project,’’ Deputy Director Anna Lillis, Department of Planning, told the committee.

Formal action and next steps The committee moved to recommend adoption of Resolution 25‑139; the motion was made by Committee Vice Chair Gabe Johnson and seconded by Pro Tem Tasha Kama. The committee recorded a voice count of seven ayes, zero noes and two council members excused; staff said the item will be transmitted to the full council for consideration at the August 12 meeting. Developers said conveyance documents, deed restrictions and financing details would be returned to the council in subsequent steps.

Implementation risks and outstanding items Presenters and council staff identified several matters that must be resolved before any conveyance or construction: final property meets and bounds, easements to preserve the pool and community center, archeological clearances, finalized capital stack (including any HHFDC loan and philanthropic commitments), and legally compliant occupancy preference language. Council members asked administration and developers to return with clear, itemized pro formas and deed restrictions when a conveyance is proposed.

Community context Presenters said the project would prioritize local health care and education employees and provide training pathways (an earn‑and‑learn CNA→LPN→RN model with Maui College) intended to raise wages over time. Developers emphasized they expect local demand to fill units quickly and said prior Ala Kai projects in Oʻahu leased rapidly to local workers.

Taper Committee members said they generally supported the project’s goals but asked the administration and developers to address affordability permanence, utility inclusion, parking and other tenant costs and to document the final financing plan before full council action. The item will proceed to the full council for consideration on Aug. 12.