Construction Begins on Phase II of 156-Unit Affordable Housing Community in Līhu‘e, Kaua‘i
Hunt Capital Partners, in partnership with Mark Development and ʻIkenākea Development, has officially announced the financial closing and groundbreaking of Uahi Ridge Phase II, a three-story garden-style affordable housing community located in Līhu‘e, Kaua‘i. This milestone represents an important step forward in addressing the persistent housing shortage on the island, providing new opportunities for local families to secure stable and affordable homes.
Phase II will deliver an additional 60 affordable rental homes, comprising a mix of one-, two-, and three-bedroom units. These will join the 96 homes currently under construction under Phase I, bringing the community’s total to 154 affordable rental homes, supplemented by two dedicated manager’s units. Phase I of Uahi Ridge successfully closed in August 2024, marking the start of a multi-phased effort designed to ease the severe housing challenges faced by Kaua‘i’s residents.
The development specifically targets families earning up to 30%, 40%, 50%, and 60% of the Area Median Income (AMI), ensuring that the housing is accessible to households with a broad range of financial needs. Importantly, 14 of the new homes will be reserved for extremely low-income families earning just 30% of AMI, while another 31 units will benefit from 20-year Section 8 project-based rental assistance contracts. These measures directly address the needs of those most at risk of housing instability and displacement.
Responding to Hawai‘i’s Urgent Housing Needs
For the island of Kaua‘i, where the median home price now exceeds $1 million, the construction of Uahi Ridge is more than a development project—it is a lifeline. With soaring real estate costs and limited supply, homeownership is unattainable for many, and renters often face unsustainable financial burdens. According to county housing data, Kaua‘i faces a shortfall of approximately 1,400 affordable homes for low-income residents.
The disparity between wages and housing costs further illustrates the depth of the crisis. To rent a modest two-bedroom apartment at market rates, a Kaua‘i resident earning the mean hourly wage of $19.92 would need to work the equivalent of 2.3 full-time jobs. This mismatch between income and cost underscores the urgent need for initiatives like Uahi Ridge, which can provide realistic and stable housing options for working families, seniors, and individuals.
As Chris Flaherty of ʻIkenākea Development explained:
“We are grateful to the many partners, agencies, and community members who worked alongside our team to bring Uahi Ridge to life. With construction now underway, we look forward to the day when these affordable homes are complete and we can share in the joy they will bring to families in Līhu‘e.”
Partnering for Community Impact
The Uahi Ridge project is the result of extensive collaboration between developers, financial partners, government agencies, and community advocates. Hunt Capital Partners, a leading national firm specializing in affordable housing tax credit syndication, has worked closely with local developers Mark Development and ʻIkenākea Development to bring the vision to reality.
Dana Mayo of Hunt Capital Partners emphasized the broader mission:
“Uahi Ridge represents our commitment to bring affordable housing to families throughout Hawai‘i’s counties, Kaua‘i now included. We appreciate the opportunity to direct tax credit equity to assist our development partners in delivering housing relief for low-income families. Access to affordable housing is critical to providing positive outcomes and enables local families to spend more of their hard-earned income on other essential costs.”
This blend of national expertise and local knowledge ensures that the project is both financially viable and community-centered.
Design, Amenities, and Sustainable Features
Beyond affordability, the development team has prioritized quality of life for future residents. Uahi Ridge will feature a thoughtful array of amenities designed to foster community connection and provide a safe, welcoming environment. Highlights include:
- Two community clubhouses for resident gatherings and activities
- Two central laundry facilities for convenience
- Playground and picnic areas for families and children
- On-site management and maintenance facilities to ensure responsive service
- Intercom entry security systems to enhance safety
- Eight ADA-compliant units to ensure accessibility for residents with disabilities
In addition to these amenities, the development incorporates sustainable features that reduce environmental impact while lowering utility costs for residents. The project is designed to achieve LEED Silver certification, demonstrating its commitment to energy efficiency and sustainable construction practices. Each unit will include Energy Star-certified appliances, LED lighting, and photovoltaic (PV) solar panels, along with infrastructure for future electric vehicle (EV) charging stations. These investments position Uahi Ridge as not only an affordable housing community but also a forward-thinking model of environmentally responsible development.
Experienced Development and Construction Team
Delivering a project of this scale requires deep expertise and coordination across multiple disciplines. The Uahi Ridge development brings together a seasoned team of professionals:
- Mark Development, Inc. and ʻIkenākea Development serve as the lead developers, drawing on extensive experience in affordable housing across Hawai‘i. Mark Development will also serve as the property manager once the community is operational.
- Goodfellow Bros, Inc. is responsible for the site work as general contractor.
- Shioi Construction, Inc. serves as the general contractor for vertical construction.
- Bow Engineering and Development, Inc. provides civil engineering expertise.
- Marc Ventura AIA, LLP is the architect of record, bringing the vision of Uahi Ridge to life through its design.
This collaboration reflects both local craftsmanship and proven affordable housing expertise, ensuring that the community is built to high standards of durability, safety, and livability.
Financing a Community Investment
Affordable housing projects of this magnitude require complex financing structures to succeed. Uahi Ridge has been made possible through a blend of federal and state tax credits, direct financial support, and private investment.
Together, Phases I and II leverage:
- $49.3 million in federal Low-Income Housing Tax Credits (LIHTCs)
- $24.65 million in Hawai‘i state LIHTCs
- $600,000 in Solar Tax Credits
Hunt Capital Partners syndicated these credits, with JPMorgan Chase serving as the federal tax credit investor and First Hawaiian Bank as the state tax credit investor. Additional financial backing came from American Savings Bank, Kaua‘i County, and the Hawai‘i Housing Finance and Development Corporation (HHFDC) through its Rental Housing Revolving Fund.
This public-private partnership model underscores how collaboration between government agencies, financial institutions, and developers can deliver tangible solutions to one of Hawai‘i’s most pressing challenges.
A Step Toward a More Affordable Future
When completed, Uahi Ridge will stand as one of the most significant affordable housing developments on Kaua‘i in recent years. It will not only provide 154 families with safe, modern, and affordable homes but also demonstrate the power of innovative financing and community partnerships in addressing housing insecurity.
For Kaua‘i families struggling to balance wages with the cost of living, Uahi Ridge represents hope and stability. By alleviating the financial burden of housing, residents will have more freedom to allocate income toward healthcare, education, food, and other essentials that contribute to long-term well-being.
As Hawai‘i continues to confront the challenges of rising costs, limited land availability, and increasing demand, projects like Uahi Ridge highlight the importance of sustained investment in affordable housing. They also remind us that housing is more than a commodity—it is the foundation of community, opportunity, and resilience.
With construction underway, the development team, local officials, and families across Kaua‘i look forward to the day when Uahi Ridge opens its doors, providing not just housing, but a thriving community where residents can build brighter futures.
