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Hale O Piikea

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Hale O Pi‘ikea Phase III: Expanding Affordable Housing in South Maui

The final phase of the Hale O Pi‘ikea affordable housing development is officially underway in Kīhei, Maui, marking a significant step forward in addressing the island’s housing crisis. Developed in collaboration with Hunt Capital Partners, ‘Ikenākea Development, Hawaiian Community Development Board, and Mark Development, Hale O Pi‘ikea Phase III will introduce 35 new affordable rental units and one manager’s unit, adding to the 187 units already in progress. Upon completion, the community will offer 223 affordable homes for families and seniors with incomes ranging from 30% to 60% of the Area Median Income (AMI).

Addressing Maui’s Affordable Housing Shortage

Maui County continues to face a severe housing shortage, with a 7,000-unit shortfall in West Maui alone as of 2023. The situation was further exacerbated by the Lahaina wildfires, which destroyed approximately 700 affordable units. Hale O Pi‘ikea Phase III is a much-needed initiative that will provide rent-restricted housing, allowing families to save up to 75% compared to market rates.

“Hunt Capital Partners is proud to collaborate once again with 3 Leaf Holdings, Hawaiian Community Development Board, and Mark Development to bring much-needed affordable housing to residents in Maui,” said John Lee, Managing Director of Hunt Capital Partners Funds Management. “By reducing housing costs, families can allocate resources toward other essential needs like healthcare, education, and nutrition.”

A Sustainable and Community-Focused Development

Situated on a 1.93-acre parcel, Hale O Pi‘ikea Phase III will feature four two-story garden-style residential buildings, designed with energy-efficient appliances, storm-resistant materials, and solar power systems. Residents will enjoy shared community spaces including a clubhouse, picnic areas, and a playground.

Beyond housing, the development will offer free, on-site programs in financial literacy, homeownership education, and parenting support. Additionally, one unit will be reserved for a household experiencing homelessness, with specialized case management provided by Mālama Nā Makua A Keiki, a respected local service organization.

“We are extremely pleased to be working with Hunt Capital Partners on the 3rd Phase of our Hale O Pi‘ikea Affordable Housing community,” said Chris Flaherty, Principal at ‘Ikenākea Development. “Their expertise in securing the right investors and understanding the unique needs of Hawai‘i make them a valuable strategic partner.”

Project Financing and Key Partners

Hale O Pi‘ikea Phase III is backed by a mix of federal, state, and county funding, including:

  • $10.3 million in federal 9% Low-Income Housing Tax Credits (LIHTCs)
  • $5.2 million in Hawai‘i state LIHTCs
  • $12.5 million in construction financing and $3.3 million in permanent financing from Bank of Hawai‘i
  • $6.8 million in soft financing from the Hawai‘i Housing Finance and Development Corporation’s Rental Housing Revolving Fund
  • $3.5 million from Maui County, sourced from HOME, American Rescue Plan, and Housing Trust Fund loans
  • $1.9 million from HCDB’s Affordable Housing Fund grant

The Future of Affordable Housing in Maui

As the demand for affordable housing continues to grow, projects like Hale O Pi‘ikea are essential in providing sustainable, community-oriented solutions. With strong partnerships and strategic financing, this development will help ensure that local families and seniors have access to safe, affordable homes for years to come.

For more updates on Maui real estate and affordable housing developments, visit MauiProperty.com or contact us today!

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Maui Property is a real estate team affiliated with The Maui Property Team. The Maui Property Team is a licensed real estate broker with a principal office in Maui, Hawaii, and abides by all applicable equal housing opportunity laws. All material presented herein is intended for informational purposes only. Information is compiled from reliable sources but is subject to errors, omissions, and changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description. All measurements and square footages are approximate. This is not intended to solicit property already listed. Nothing herein shall be construed as legal, accounting, or other professional advice outside real estate brokerage.

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