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DHHL unveils modular‑housing pilot with Fading West to cut costs and speed delivery
Summary
DHHL presented a plan to pilot modular construction for scattered lots (20 homes) and explore a local factory, citing per‑unit cost reductions and faster build times. Fading West described past FEMA and mainland projects and factory capacity.
Department of Hawaiian Home Lands staff presented a proposal to pilot modular construction for DHHL homes and to explore a long‑term factory model to accelerate housing delivery.
Acting Land Development Division administrator Kalani Frond said the department faces an affordability and production shortfall using traditional on‑site construction and is testing alternatives including modular systems, structurally insulated panels and on‑site fabrication. “Our current construction timelines for traditional stick build homes do not meet DHHL needs,” Frond said, citing an average wait‑list age over 60 years.
Fading West CEO Charlie Chupp and Chief Development Officer Eric Schafer described their off‑site production experience, including a recent FEMA contract to build 109 homes for Maui disaster relief that was completed and occupied within months. Chupp noted the company has capacity and standardized processes: “We’ve built over 1,000 homes now,” he said, and described factory controls that reduce waste and shorten delivery timelines. Fading West supplied comparative pricing examples used by DHHL staff showing a sample modular 1,600 sq ft house priced at about $436,000 versus a 1,100 sq ft traditional house at roughly $600,000 in a recent DHHL lot selection context.
DHHL plans a proof‑of‑concept pilot to deliver 20 homes on scattered lots (15 in partnership with Habitat for Humanity, five for DHHL) with a completion target of late 2026, after which the department will evaluate factory options. Staff noted building a permanent local factory is capital‑intensive (estimates ranged from roughly $60M on the mainland to higher in Hawaii) and described interim options such as a sprung‑structure factory shell to begin local assembly at lower upfront cost.
Commissioners and staff discussed modular suitability for Hawaiian lifestyles (multigenerational households, ADA/accessibility and expandability), local labor and union participation, and the potential to stack modules for multifamily or townhouse configurations. Fading West emphasized design flexibility and local partnerships; the pilot will test build quality, local supply chain and union engagement before any factory investment.
The commission treated the submittal as informational; staff said they will report pilot outcomes and any factory proposals to future commission meetings.
