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Lanai affordable housing project: county officials, developer say infrastructure is main hurdle; multiple funding layers planned
Summary
County and developer representatives described the Lanai affordable housing project as primarily constrained by infrastructure. Officials said the county allocated $10 million in the budget and that funding will be layered with federal funds, DHHL participation, tax credits and other sources; some federal earmarks did not materialize for FFY2025.
Developer and county officials told the BFED committee that the principal barrier to affordable housing development on Lāna‘i is infrastructure, and that the county intends to use layered public and private funding to pay for utilities and vertical construction.
Key takeaway: County staff and a project representative said the county’s $10 million commitment is intended to address infrastructure shortfalls that prevent vertical development; additional layers of financing under consideration include federal funds, Department of Hawaiian Home Lands participation, tax credits and affordable‑housing trust funds.
Details from the presentation Mister Begley (appears in the transcript as “Mister Begley” / “Bigley”) briefed the committee that the project has an infrastructure component and a vertical construction component. “The goal of the project is to get the biggest hurdle and that is…infrastructure,” he said, adding county infrastructure work will “open the potential for all future development to the county parcel.” He said contractors who have recently completed projects on Lāna‘i are being asked whether they can reduce costs for the current project.
County and federal funding Council members asked whether the loss of an FFY2025 congressional earmark would change the county’s financing stack. Director Mitchell said the county is working with the Department of Management to retool the project scope for a federal fiscal year 2026 funding request and that the administration is relying on county funds to underwrite the “meat” of the project, particularly infrastructure and vertical construction. Mitchell said he supports the project and the department will back increased county funding requests if the mayor and managing departments approve them.
What still needs to happen Developer Begley told members he would supply a one‑page project summary to the council. Committee members pressed for clarity on total project costs and the breakdown of funding sources; Begley said those details would be provided in follow‑up materials.
Community context and next steps Council members emphasized the high cost of construction on Lāna‘i and called the project important because the island has not seen for‑sale affordable housing in decades. Director Mitchell reiterated departmental support and said county staff will continue to refine the project scope as federal funding opportunities are pursued.
