LA'IE — Land management company Hawaii Reserves Inc. has purchased a 227-acre parcel between La'ie town and Malaekahana with plans to build affordable housing.

In 2003, the company, which is the land management arm for The Church of Jesus Christ of Latter-day Saints, purchased 663 acres in Malaekahana and said it was planning to build 550 affordable single-family and multi-family homes for La'ie workers.

The new property is expected to help HRI's current plans to build workforce housing in Malaekahana, according to a news release from the company yesterday.

"It made sense to have one contiguous land holding from La'ie to Malaekahana," said HRI President and Chief Executive Officer Eric Beaver in the news release. "This additional acreage will aid the affordability equation for our workforce housing project, allow us to connect the two communities of Malaekahana and La'ie via roads and bike paths mauka of Kamehameha Highway, reduce traffic flows on the highway and create an opportunity for park and open-space recreational facilities at the center of our holdings to benefit both La'ie and Malaekahana."

HRI purchased the 227 acres from KRC Golf LLC for about $4 million. The Malaekahana land cost $10 million.

Nicola Jones, with KRC Golf, said the land transfer will benefit both companies and the community.

"We wholeheartedly support the use of the land for bike paths, open park space and to enable the planning of HRI's affordable housing project to move forward," Jones said. "HRI's use of this land fits perfectly with our vision of providing affordable housing and open space to the community."

Plans for Malaekahana were under way but with this new purchase, it will be reevaluated, said Beaver.

HRI plans to work with the city to incorporate its plans into the Ko'olauloa Communities Sustainable Plan that is under review now, the news release said, adding that HRI is also exploring the state's affordable housing program that allows an expedited entitlement and permitting process.

HRI hopes to make the majority of its homes affordable to households earning 140 percent or less of the area's median income, as defined by the U.S. Department of Housing and Urban Development.

It is also redeveloping the Laie Inn, a hotel adjacent to the Polynesian Cultural Center.

Reach Eloise Aguiar at eaguiar@honoluluadvertiser.com.