More than 150 affordable one-, two- and three-bedroom rentals are expected to be available on Kaua‘i next year.
Uahi Ridge, a new affordable rental housing development underway in Līhu‘e, broke ground this week.
Located at 4534 Uahi Road, the project is being developed in partnership with Kaua‘i County; Mark Development, Inc.; Wa‘a Partners, LLC; 3 Leaf Holdings, Inc.; and the Hawaiian Community Development Board, a recent announcement noted.
“Kaua‘i has some of the most expensive housing costs in the state,” Dean Sakata, acquisitions and development manager for Mark Development, on behalf of Uahi Ridge Hui LP, said in an email to Aloha State Daily. “Uahi Ridge addresses this need by developing new affordable rental housing for Kaua‘i.”
When complete, this phase of the project — the first of two — will offer 96 affordable rental units for families earning at or below 60% of the area median income in eight buildings. The second phase will add 60 more units in five buildings.
According to the announcement, rents were "established in compliance with federal guidelines that aimed to support households earning 50% and 60% of the area median income," but 10 units will be reserved for households that earn 40% AMI and eight will be set aside for those earning 30% AMI.
Allowable income levels vary depending on household size.
Sakata told ASD that for a family of four on Kaua‘i, for example, the maximum income level at 30% of the area median income is $39,870; at 40% AMI is $53,160; at 50% AMI is $66,450; and at 60% AMI is $79,740.
Rents will range from $616 to $1,364 for a one-bedroom unit; $716 to $1,614 for a two-bedroom unit; and from $1,499 to $1,844 for a three-bedroom unit, he said, but noted that incomes and rents are subject to change.
Click here to find the county's breakdown of 2024 income limits.
The developers say Uahi Ridge also will offer a multi-purpose room, storage space and “abundant” parking for tenants and guests, as well as a keiki playground.
Completion of the first phase is projected for summer of 2026, with the first building ready for move-in starting next spring, Sakata said. Work on the second phase is expected to start this summer with completion scheduled for late 2026.
Sakata says that the proximity of the site to employment opportunities, heath care services, schools and shopping attracted the developers to the location.
There are few available sites on the Garden Isle “that allows families to spend more time together by minimizing their commute times,” he says.
“The project is located next to the Aloha Church Kaua‘i, offering a unique opportunity for residents to walk next door to escort their child to preschool.”
According to Sakata, the first phase of the project will cost an approximate $73 million.
Uahi Ridge received financing from the Hawai‘i Housing Finance and Development Corp., Hula Mae Multi-family bonds, federal and state Low Income Housing Tax Credits and the Rental Housing Revolving Fund, with further support from the Kaua‘i County Housing Agency, and U.S. Housing and Urban Development project-based Section 8 vouchers, the announcement noted. American Savings Bank is the lead bond purchaser and lender and Hunt Capital Partners is the tax credit syndicator, it further noted.
Sakata says that financing for phase one closed last year so the developers were able to lock in prices for most materials prior to tariff increases.
Stephanie Salmons can be reached at stephanie@alohastatedaily.com.
