A Hilo hotel will soon be repurposed for affordable housing.
Hawai‘i County announced Friday that its Office of Housing and Community Development, or OHCD, has acquired the Dolphin Bay Hotel for $1.28 million, a purchase made possible by using federal funds from the Emergency Rental Assistance 2 Program.
Guest rooms will be converted into 18 affordable rentals, the county says, noting that studio, one- and two-bedroom apartments will be available for residents earning up to 50% of the area median income. Income limits are determined by household size. Find the 2025 income limits here.
Hawai‘i County Mayor Kimo Alameda said in an announcement Friday that through the sale, the hotel will continue its legacy of serving the Hilo community.
“For decades, Dolphin Bay has been a gathering place and a home for many,” former owner John Alexander said in the announcement. “I’m happy it will continue that role as affordable housing for local families.”
The hotel was built by the Alexander family in 1968 and is in the Pu‘u‘eo area of Hilo.
County Housing Administrator Kehaulani Costa said in the announcement that the acquisition is part of OHCD’s plan to more quickly expand affordable housing opportunities.
“Building new housing takes time but families need help now,” Costa says. “By purchasing existing housing, we can deliver affordable units faster and provide immediate relief for residents struggling with high housing costs.”
According to the county, Kona Moran of Hilo Brokers Ltd. facilitated the sale and Mark Development Inc. is slated to manage the property.
The first units are expected to be ready early next year, pending renovation schedules and permitting timelines, the county says.
For more information, visit mdihawaii.com, housing.hawaiicounty.gov or email meghanb@mdihawaii.com.
Read more about Hawai‘i County housing here, here, here and here.
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Stephanie Salmons can be reached at stephanie@alohastatedaily.com.
