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DHHL explores modular housing pilot with Fading West to speed affordable home delivery
Summary
DHHL staff presented an informational proposal to pilot factory‑built modular homes (20 scattered lots on Oʻahu) with Fading West; the firm described faster factory production, FEMA experience building 109 homes in Maui, and potential long‑term benefits and challenges for a local factory or temporary manufacturing site.
The Department of Hawaiian Home Lands’ land development division presented an informational item on modular construction as a strategy to accelerate affordable housing for beneficiaries. Staff noted current construction costs on new DHHL sites often exceed $550 per square foot and that modular methods could reduce per‑unit costs and timelines.
Elijah Davidson and Acting LDD Administrator Kalani Frond described plans for a 20‑home pilot (scattered lots) to demonstrate quality, affordability and logistics. The department said a pilot would use off‑island factory production initially, with a future option to stage local factory capacity in a temporary sprung‑structure or permanent facility.
Representatives from Fading West (CEO Charlie Chupp and development officer Eric Schafer) described their factory system, which they said can produce multiple modules per month, noted a FEMA contract to build 109 homes for Maui, and stressed partnerships with local contractors and unions. "We build over 1,000 homes now," Chupp said, describing standardized quality control, faster factory lead times and the ability to design for Hawaiian climate and cultural preferences.
Commissioners asked about accessibility, multi‑generational needs and adaptability. Fading West and DHHL staff said the modules will be designed to local preferences, allow for later expansions, and be built to IRC/IBC codes with options for ADA/aging‑in‑place designs. The department plans to combine units into higher‑density configurations where appropriate.
Next steps: a 20‑home pilot is planned for completion in 2026; staff will coordinate with Habitat for Humanity and other partners on home allocation. DHHL will assess costs and options for a local factory, estimated in the transcript at tens of millions of dollars to build full factory capacity, or a temporary sprung‑structure factory as a lower‑cost interim approach.
