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County officials report 158 new affordable units, zero out legacy housing credits
Summary
The county’s Office of Housing and Community Development told the committee the quarter added 158 affordable units—140 in Waikoloa and 18 via conversion of Dolphin Bay Hotel—and described corrections to excess-credit balances; councilmembers asked for supporting agreements and closed the file.
Anne Bailey, a representative of the Office of Housing and Community Development, told the Communications Reports and Council Oversight Committee on March 17 that the county’s affordable housing quarterly report (Oct. 1–Dec. 31, 2025) shows 158 new affordable units came online in the most recent quarter. “We were able to award 28.5 excess credits to…62 74 kaiulu or Waikoloa,” Bailey said, and she described two projects that produced the units: a 140-unit project in Waikoloa built on county property and an 18-unit conversion of the Dolphin Bay Hotel, the latter purchased with federal ERA II funds and placed into perpetual affordability.
Bailey also described an administrative correction to the county’s excess-credit balances: she said the Kona Country Club balance and other pre‑awarded credits tied to a federal case for the Westview project were zeroed out because no housing has been built on those sites to date. “Gretchen Osgood’s credits were also zeroed out. She had a previous balance of 41 and it’s been determined that these were pre‑awarded credits for the Westview project,” Bailey said.
Council members thanked housing staff for the report and asked for documentation. One councilor requested a copy of the affordable‑housing agreement and supporting materials for the Waikoloa project and asked scheduling and agreement details for the credits. Bailey said the department has the records and will provide them on request.
Several council members pressed the department about whether Kauhale developments would be counted as permanent supportive housing; Bailey said that determination depends on the project’s design and usage and that projects may be placed into the permanent supportive housing category if they meet those criteria.
After discussion, the committee voted to close the file on communication 35.5 by voice vote; the clerk announced eight ayes with one council member excused.
