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The Honolulu Advertiser
Posted on: Wednesday, April 22, 2009

Affordable rentals rise on Big Island

By Andrew Gomes
Advertiser Staff Writer

Hawaii news photo - The Honolulu Advertiser

Developer Ho'olehua Housing's 306-unit Lokahi Apartments in Kailua, Kona, will consist of 18 three-story buildings. Rents will range from $320 to $833 a month.

Pacific Housing Advisors

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Hawaii news photo - The Honolulu Advertiser
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An affordable-housing developer is seeking applicants for a low-income rental housing project in Kailua, Kona, on the Big Island, where monthly rents will range from $320 to $833.

Project developer Ho'olehua Housing LP has begun accepting rental applications for Lokahi Apartments, a 306-unit project slated for completion in phases starting in July through the end of 2010.

To be considered, applicants may not earn more than 60 percent of the Big Island's median household income, which equates to $40,500 for a family of four or $28,380 for a single person. Seventeen units are reserved for people earning no more than 30 percent of the area median income, which equates to $20,250 for a family of four or $14,200 for a single person.

The developer plans to select renters through a lottery scheduled for May 15. Prospective tenants may obtain an application by calling 523-8826 on O'ahu or visiting www.lokahiapartments.com on the Web.

Lokahi Apartments is being developed in Lower Palisades, two miles south of the Kona International Airport, by Ho'olehua Housing, an affiliate of related Seattle-based firms Allied Pacific Development and Pacific Housing Advisors.

The project will be the first new rental housing project built in the past three years in an area where the projected need for similarly priced affordable rentals was at 2,585 households in 2007, according to a final environmental assessment filed by the developer in January.

The $75 million project is being financed in part with $33.5 million in bonds floated by the Hawai'i Housing Finance and Development Corp., a $9.75 million loan from the state agency and proceeds from the sale of state and federal affordable housing tax credits.

Lokahi Apartments will consist of 18 three-story buildings on 10 acres. Planned amenities include a volleyball court, half-size basketball court, picnic areas and a playground.

Units include 90 studios with 384 square feet of living space renting from $320 to $675 a month, 108 one-bedroom units with 640 square feet renting from $328 to $708, and 108 two-bedroom units with 936 square feet from $377 to $833.

The developer anticipates completing the first building with 30 units in July, allowing the first residents to move in during August, followed by completion of one building a month. Under financing terms, Lokahi Apartments will be maintained as an affordable rental complex for a minimum of 55 years.

Reach Andrew Gomes at agomes@honoluluadvertiser.com.