A recently completed $7 million rehabilitation project has breathed new life into an affordable rental community in Līhu‘e, preserving long-term dozens of affordable rental homes on the Garden Isle.
Kaua‘i Housing Development Corp., a nonprofit corporation established in 1992 to provide affordable housing for low and moderate income families, was joined last week by government officials, project partners and other community leaders for a dedication and blessing of Kalepa 23.
“This investment ensures that 80 affordable homes on Kauaʻi will remain available to local families and kūpuna for years to come,” KHDC Executive Director Andy Friend said in a recent announcement. “We’re grateful to the state, county and all of our partners who worked with us to improve this community and preserve an important source of affordable housing for Kauaʻi."
According to the announcement, Kalepa 23 encompasses phases 2 and 3 of Kalepa Village, and includes eight two-story residential buildings with one-, two- and three-bedroom apartments.
The rehab included the total replacement of the solar water heating system; repairs to exterior dry rot; interior and exterior painting; upgrades to individual residences, including new flooring, appliances, cabinetry and light fixtures; and replacement of numerous plumbing fixtures and interior doors, the announcement notes.
Kalepa 23 serves households earning up to 60% of the area median income, with some units designated for households at the 30%, 50% and 60% income levels, the announcement notes. Income limits are determined by household size; you can find current guidelines for Kaua‘i County here.
All 80 units are now fully occupied.
Friend told Aloha State Daily in an emailed response to questions that he's seen a couple of market studies that show a need for more than 2,000 affordable housing units on Kaua‘i, and with land and development costs so high, it's "extremely challenging to increase the supply of both single-family and multi-family housing."
"Building new affordable housing is needed, but we can't overlook the importance of preserving the affordable housing we already have," Friend says. "We need to do both to increase the overall supply. As multi-family properties reach 15, 20 or 25 years of age, they require rehabilitation and improvements to remain safe and viable for rental. Investing in these properties not only extends their useful life but also gives people a sense of pride in where they live."
Friend says the development was originally built in two phases, with 40 units completed around 2004 and another 40 built around 2008.
Statewide, Hawai‘i will need an estimated 64,490 additional housing units through 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 notes that Kaua‘i County needs a total of housing 4,914 units by 2027 — 2,156 for ownership and 2,758 rental units. Some 3,258 units are needed for those making 80% or below of the area median income.
According KHDC, the Kalepa 23 rehabilitation project was completed with both public and private financing, including federal and state Low-Income Housing Tax Credits, support from the Hawai‘i Housing Finance and Development Corp.'s Rental Housing Revolving Fund, and financing by Bank of Hawai‘i and Rural Community Assistance Corp.
Kaua‘i County owns the underlying land. Shioi Construction, Inc. was the general contractor for the rehab work, the announcement says.
Stephanie Salmons can be reached at stephanie@alohastatedaily.com.
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