New federal funding coming to Kaua‘i County will support housing and transportation projects on the Garden Isle.
The county will receive nearly $7.5 million for three projects: $3.15 million for the Lima Ola affordable housing subdivision in ‘Ele‘ele; $2 million for the Kīlauea Town Expansion Project; and $2.3 million for the construction of a shared-use pedestrian and bicycle path between Waimea and Kekaha.
“These investments reflect years of planning and coordination among county departments, federal partners and community stakeholders,” the county said in a recent announcement, noting that it will “work closely with federal agencies to finalize grant agreements and advance each project into the next phases of design and construction.”
“These federal earmarks represent meaningful progress toward some of Kaua‘i’s most pressing needs,” Mayor Derek Kawakami said in the announcement. “We appreciate the strong partnership and advocacy of our federal delegation, which allows us to invest in affordable housing and safe, connected infrastructure, and to continue building communities where local families can live, work and thrive.”
Lima Ola
According to the county, the $3.15 million in federal funding from the U.S. Department of Housing and Urban Development Community Development Fund will be used for the construction of subdivision infrastructure in the third and fourth phases of the Lima Ola development.
Construction is underway on the 75-acre, county-owned subdivision. When it’s finished, it’ll offer approximately 600 affordable homes constructed across multiple phases, making it Kaua‘i County’s largest affordable housing development, the announcement notes.
The first phase of the project is about 95% finished and includes a 40-unit building for senior rentals, a 45-unit workforce rental complex, 32 supportive housing units for residents experiencing homelessness and 36 single-family homes.
A county spokesperson told Aloha State Daily in an email that 75 single-family homes and approximately 100 multi-family rental units are planned for the second phase, and an additional 300 multi-family units are tentatively planned for the third and fourth phases.
The development of the subdivision infrastructure in phase one totaled $19 million, the spokesperson confirmed, while vertical construction in this phase is roughly estimated to be around $66.7 million.
The spokesperson, however, noted that construction costs were paid by development partners and the county only directly developed the supportive housing project for homeless families at a cost of about $5.5 million. Āhē Group was selected in 2022 to develop the multi-family and senior projects in phase I, the project website states.
The projected subdivision development costs for all remaining phases, including highway improvements, is roughly $31 million, the spokesperson says.
Find more about Lima Ola here.
Kīlauea Town Expansion
The $2 million in funding for the Kīlauea Town Expansion Project also is supported through HUD’s Community Development Fund.
According to the county, this money will advance first-phase site preparation for a new affordable housing subdivision in Kīlauea.
The project is expected to offer about 350 affordable rental and for-sale homes while also integrating parks, commercial space and future county services, the county notes.
Following a “lengthy series” of community meetings, Kaua‘i County completed a project conceptual plan and is now working to “wrap up predevelopment studies and an environmental assessment based on the concept plan,” the county spokesperson says. After the EA is completed, the county will submit a 201H application for required land use entitlements.
“The next step will be to complete final construction and engineering plans for the subdivision infrastructure,” the spokesperson explained. “At this stage, it is premature to provide a definitive total project cost. However, based on our analysis of recent comparable projects, we estimate that the full development of the subdivision may require roughly $30 million and will likely be carried out in at least two phases.”
Find more about the proposed Kīlauea Town Expansion here.
Housing continues to be a need across the Islands.
Statewide, Hawai‘i will need an estimated 64,490 additional housing units by 2027 to meet demand, according to the Hawai‘i Housing Finance and Development Corp.'s 2024 Hawai‘i Housing Planning study, which was published last year.
That same study found that Kaua‘i County needs a total of housing 4,914 units by 2027 — 2,156 for ownership and 2,758 rental units. Of those, 3,258 units are needed for those making 80% or below of the area median income.
Shared-use path
Meanwhile, the $2.3 million secured for the shared-use pedestrian and bike path comes from the U.S. Department of Transportation Highway Infrastructure Programs.
According to the county spokesperson, plans call for the path to be constructed on the mauka side of Kaumuali‘i Highway between Carl Furutani Street in Waimea and Kekaha Road in Kekaha. The new path will connect with existing sidewalks on Carl Furutani Street, previously Huaka‘i Road, and Kaumuali‘i Highway in Waimea as well as to proposed sidewalks on Kekaha Road, which will be part of another project.
“The main goal of this initiative is to establish a shared-use bike and pedestrian path that enhances safety and comfort for both residents and visitors to Kaua‘i,” the spokesperson says. “It aims to provide a safer alternative for pedestrians and cyclists traveling between Waimea Town and Kekaha Town, offering a more pleasant experience than using the shoulders of Kaumuali‘i Highway.”
According to the spokesperson, the path will be designed to accommodate people of ages and skill levels, which means it’ll be accessible to a range of bicyclists and pedestrians.
“Furthermore, this improvement will create safe routes to school for students attending Kekaha Elementary School in Kekaha, as well as Waimea Canyon Middle School and Waimea High School in Waimea, since students from both towns often attend both schools,” they continued. “Additionally, the path will benefit future residents and users of the ‘Waimea 400’ property, which the county owns and is currently planning for development. The project is expected to commence in 2028.”
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Stephanie Salmons can be reached at stephanie@alohastatedaily.com.
