Hunt Capital Partners Secures $15.4M for Maui Affordable Housing
Hunt Capital Partners, in collaboration with ʻIkenākea Development, the Hawaiian Community Development Board (HCDB), and Mark Development, has successfully closed financing for Hale O Pi’ikea III, marking the final phase of an ambitious three-phase affordable housing initiative in southwest Maui. Situated in Kīhei, Hale O Pi’ikea III aims to provide much-needed housing options for low-income families earning up to 30%, 40%, and 60% of the Area Median Income (AMI). This phase introduces 35 additional affordable rental homes along with one exempt manager’s unit, bringing the total count to 223 units across all three phases. With families and seniors facing increasing economic challenges, the development provides a crucial resource in addressing the region’s ongoing housing crisis.
The completion of Hale O Pi’ikea Phase III represents a significant step forward in tackling the chronic housing shortage plaguing Maui County. A 2023 report estimated that West Maui alone faced a shortage of approximately 7,000 affordable housing units. The situation was further exacerbated by the tragic Lahaina wildfires, which resulted in the loss of nearly 700 affordable homes. This stark reality underscores the urgent need for sustainable and accessible housing solutions, and Hale O Pi’ikea III serves as a vital response to this growing demand. By offering rent-restricted housing options, the development will allow families to save up to 75% compared to market-rate rental prices, providing them with financial relief and stability.
“Hunt Capital Partners is honored to collaborate once again with 3 Leaf Holdings, Hawaiian Community Development Board, and Mark Development to bring much-needed affordable housing to Maui residents,” stated John Lee, Managing Director of Hunt Capital Partners Funds Management. “By lowering housing costs, families can redirect their financial resources toward other critical needs, such as healthcare, education, and nutrition, ultimately leading to improved quality of life and long-term economic stability.”
Located on a 1.93-acre site, Hale O Pi’ikea Phase III will consist of four two-story garden-style residential buildings complemented by thoughtfully designed shared spaces. Community amenities will include a clubhouse, picnic areas, and a playground, fostering a welcoming and family-friendly environment. The apartment homes are designed with both comfort and efficiency in mind, featuring ceiling fans and Energy Star appliances, including electric ovens, refrigerators, garbage disposals, and washer/dryers. Sustainable design principles are integral to the development, with storm-resistant construction materials, water intrusion prevention measures, solar power installations, and water-efficient landscaping contributing to the project’s resilience and environmental stewardship.
Beyond housing, the development offers a comprehensive range of resident services to support long-term financial and personal well-being. Free on-site programs will include financial literacy and money management workshops, homeownership education, and parenting support. In addition, one unit will be specifically designated for a household experiencing homelessness. This household will receive tailored case management support through Malama Na Makua A Keiki, a well-established direct service provider on Maui dedicated to assisting families in crisis.
“We are extremely pleased to be working with Hunt Capital Partners on the third and final phase of our Hale O Pi’ikea Affordable Housing community in Kīhei,” said Chris Flaherty, Principal of ʻIkenākea Development. “Hunt Capital Partners brings invaluable expertise in sourcing the right investors for our projects. Their deep understanding of Hawaii’s unique challenges and the distinctions between its islands and communities allows us to form a strong strategic partnership that is essential to our success.”
The development team behind Hale O Pi’ikea Phase III comprises ʻIkenākea Development as the managing general partner, HCDB as the co-managing general partner, and Mark Development, Inc. as the administrative general partner and property management agent. Moss & Associates, LLC serves as the general contractor, while Design Partners Incorporated has been designated as the architect of record, ensuring the project meets the highest standards of quality and sustainability.
Funding for Hale O Pi’ikea Phase III was made possible through a combination of federal, state, and local financial contributions. The project received $10.3 million in federal 9% Low-Income Housing Tax Credits (LIHTCs) and an additional $5.2 million in Hawai‘i state LIHTCs. Bank of Hawai‘i played a key role in financing, providing $12.5 million in construction funding and $3.3 million in permanent financing. Additionally, the Hawai‘i Housing Finance and Development Corporation contributed $6.8 million in soft financing through its Rental Housing Revolving Fund, while the County of Maui supported the initiative with $3.5 million sourced from a combination of a HOME loan, an American Rescue Plan loan, and a Housing Trust Fund loan. HCDB also contributed $1.9 million in soft financing via its Affordable Housing Fund grant.
Prioritizing Environmental, Social, and Corporate Governance (ESG) Initiatives
Hunt Capital Partners remains committed to supporting ESG-focused investment opportunities, recognizing the growing interest among institutional investors in projects that generate meaningful social impact. Affordable housing developments, such as Hale O Pi’ikea, not only provide secure and stable living conditions but also help dismantle economic barriers that hinder individuals and families from achieving long-term success. By alleviating financial strain, residents are able to reallocate resources toward essential expenses such as food, clothing, extracurricular activities, and educational programs, all of which contribute to community development and individual empowerment.
One of the most profound benefits of affordable housing is its positive influence on residents’ physical and mental health. Stable housing reduces stress and provides a foundation for better healthcare access, improved nutrition, and overall well-being. Through its investments in affordable housing, Hunt Capital Partners fosters long-term improvements in the quality of life for low-income families and seniors, ensuring a lasting positive impact on the communities it serves.
The completion of Hale O Pi’ikea Phase III stands as a testament to the power of strategic collaboration and innovative financing in addressing Hawaii’s housing crisis. As the state continues to navigate challenges related to affordability and availability, developments like this serve as a blueprint for future housing initiatives. By prioritizing sustainable design, essential services, and financial accessibility, Hale O Pi’ikea III will offer not just homes but opportunities for stability and growth for generations to come.
