The Maui News reported that the agreement stems from KSD Hawaii's development of the 240-acre, 35-lot Pulehu Farm subdivision in Kula. Under the agreement, the developer will make available 17 units, selling from $240,000 to $425,000, although final pricing had yet to be determined as of Monday and four units might be substituted with a per-unit cash contribution.

Thirteen of the homes will be in Makawao near the intersection of Makawao Avenue and Maha Road. They will range from 600 to 1,100 square feet, with six two-bedroom homes and seven three-bedroom residences. Eight of the homes have been remodeled, and five are being built new.

Four units may be substituted with a per-unit cash contribution, as allowed by the county's residential work force housing ordinance, which became law in December 2006. Or, they also may be built in the same Upcountry community plan area, according to county officials.

The housing ordinance requires developers of homes, hotels and time-share units to provide 40 percent to 50 percent affordable units based on the size and prices of the developments.

"This agreement represents an important first step in realizing our county's affordable housing initiatives," Tavares said. "Finding an affordable place to live on Maui can be difficult, especially Upcountry, so we are pleased that this first implementation of the ordinance will make these units available."

KSD Hawaii President David Goode, a former county public works director, said his company was proud to make the homes available to families needing affordable housing.

"Now we're excited about starting the buyer-selection process and working toward move-in day for the 13 families," he said.

Called "Na Hale O Kilinahe," the project's 13 initial units on 2 acres will be offered individually for sale in about 60 to 90 days, county officials said. Units will be sold through a lottery, with units being made available to families earning from 80 percent to 160 percent of the federal median income for Maui County.

Pending final negotiations with the developer, Na Hale O Kilinahe will be managed by Na Hale O Maui, a community land trust that will ensure that the units are kept affordable in perpetuity.

The affordable project's features include underground utilities, curbs, gutters, sidewalks, landscaping, new waterlines and individual water meters. The homes will be equipped with solar water heaters and energy-efficient light bulbs.

One new home will have a complete photovoltaic system, courtesy of Hnu Photonics of Kahului.

The project's name, "Na Hale O Kilinahe," which means homes of the sweet, gentle raindrops, was selected by students in a Hawaiian-language class at the Kamehameha Schools Maui.

For more information on the residential work force housing program or other county housing initiatives, contact county Housing Commissioner Jo-Ann Ridao at 242-1180. For information on Na Hale O Kilinahe, call Goode at 572-3011.