The funds are a portion of a $995,755 HOME grant provided by the U.S. Department of Housing and Urban Development. The program is a federal block grant provided to state and local governments exclusively for affordable housing for low-income households.

A public hearing on the proposed allocation of the HOME funds will be held at 2 p.m. today in room 438 on the fourth floor of the Kalana O Maui building in Wailuku.

Also at the hearing, the public will be able to comment on county proposals for use of Community Development Block Grant funds. The county is proposing to allocate $2 million in CDBG funds to nine projects, including $250,000 for rehabilitation of the Kahului Town Terrace, $369,450 for county curb ramp improvements and $574,000 for a new tanker for the Lanai Fire Station.

Kamaile Sombelon, executive director of Lokahi Pacific, told The Maui News that the Waiehu project hinges on the HOME funds. The $900,000 will be used for pre-development expenses as well as infrastructure development costs.

The Waiehu Mauka Rental Housing Project will use 6.5 acres donated by Pacific Rim Land, Sombelon said. Pacific Rim Land has offices in Kihei and on the Mainland.

The project site is makai of Kahekili Highway bordering the Waiehu Heights subdivision near the Waiehu Terrace recycling center. Lokahi proposes 40 one- and two-bedroom rental units for families at 50 percent or below median income.

In addition, Lokahi is studying the possibility of building 60 townhouse units for sale as affordable housing. The three- and four-bedroom townhouse units would be priced from $165,000 to $250,000.

Because of the land donation, Sombelon said Lokahi is able to keep the prices low. She said Lokahi has not finalized plans pending allocation of the HOME funds.

Sombelon said the county has provided "excellent" support for the proposal citing in particular the cooperation of new Housing and Human Concerns Director Vanessa Medeiros and Mayor Charmaine Tavares.

Knowing of the need for low-cost housing on Maui, she said she is sure the units will be occupied as soon as they can be completed.

With other HOME funds, the county proposes to use $10,755 for the ongoing county American Dream Downpayment Initiative Program, providing loans for down payments by low-income first-time home buyers. Repayment of the loans is deferred.

In addition to the hearing today, comments on the allocation of the HOME funds may be sent to the Housing Division Office by May 3, Attention: Wayde Oshiro, Department of Housing and Human Concerns, County of Maui, 86 W. Kamehameha Ave., Kahului, 96732-2259. Comments may be hand delivered by 4:30 p.m. May 3, at the Housing Office in Kahului.