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County seeks $1 million in planning funds for Rainbow Drive affordable-housing site
Summary
Hawaii County’s housing office asked the committee to accept a $1,000,000 state grant to pay for planning and engineering to bring roads and utilities into the 34 Rainbow Drive parcel — roughly 24.7 acres with about 7–8 buildable interior acres — enabling future rental housing development and potential state partnership.
The committee forwarded Resolution 498‑26 on April 7, which accepts a $1,000,000 grant from the State Office of Planning and Sustainable Development to pay for planning and engineering design for road and utility improvements at the 34 Rainbow Drive parcel.
Anne Bailey, division manager for the Office of Housing and Community Development, told the committee the parcel totals roughly 24.7 acres and the interior buildable area is roughly 7–8 acres. She said the county’s master plan (approved in 2024) estimates the site could accommodate about 150 rental units, and the parcel would be rental-only because it was conveyed to the county by executive order and cannot be sold.
Council members asked about utility planning, early cost estimates and possible funding sources beyond the planning grant for construction. Bailey said the $1,000,000 planning grant is expected to cover the initial planning and design contracts and that subsequent funding could come from the county’s Affordable Housing Production Fund, state CalHawaii (CalHolly) funds if available, low-income housing tax credits, or partnerships with developers. Members asked the office to coordinate with Public Works on bridge and access improvements on Wainui Nui Drive; Bailey agreed to reach out to DPW.
Why it matters: The planning funds would unlock infrastructure to enable affordable rental housing on an executive‑order parcel, with potential to serve low- and very-low-income households and to tie into regional health-corridor planning.
The committee voted to forward the resolution to the full council with a favorable recommendation; next steps include permitting, utility coordination and pursuit of capital funds for vertical construction.
