Committee debates Olowalu workforce housing project

Panel discussion to resume Monday

The County Council Affordable Housing Committee wrestled Tuesday with more than two dozen conditions proposed for a workforce and market-rate project with 59 lots on about 30 acres of West Maui land.

Led by landowner Peter Martin, the Lihau‘ula project located mauka of Honoapiilani Highway in Olowalu calls for building 40 workforce homes that would be sold to residents between 80 and 140 percent of the area median income, along with 19 vacant lots that would be sold to residents at market price.

Tuesday’s meeting comes less than a week after the ninemember committee heard hours of mixed testimony from residents. Supporters said workforce housing is desperately needed in West Maui and opponents said the project isn’t affordable enough, could threaten Olowalu reef health and impact plans for Honoapiilani Highway realignment.

Proposed conditions seek to redistribute the amount of homes available for area median income ranges, prevent condominium conversion or further subdivision, restrict fee waivers and deal with private water systems.

During Tuesday’s discussion, council Vice Chairwoman Keani Rawlins-Fernandez said that the developer disagreeing with some of the conditions is a “deal breaker,” and she won’t be voting for the project.

Committee Chairwoman Tasha Kama, who decided to recess the meeting so conditions can be discussed further, said the panel owes it to the community to fully vet proposals.

“If our job is to be able to create more housing, better housing, and a better place in however we can do it, I think we owe it to our people to have a discussion,” she said.

Rawlins-Fernandez said that’s where the two disagree.

“As I stated multiple times during the past term, I am all in support of affordable housing, but not at all and any cost,” she said. “It cannot put too much of a strain on our resources.”

Kama affirmed her stance but added that without a “deeper dive and a bigger discussion it’s difficult to gauge at such a time like now.”

Council Chairwoman Alice Lee asked, toward the end of the meeting, that the county Department of Housing and Human Concerns look into where the county can find affordable homes to curb the housing crisis if this project is shut down.

“OK, if we don’t do this 40, it’s not like we have people knocking down our door to build housing, so somebody’s gotta do the housing, who’s going to do the housing?” she asked.

Martin is looking to fasttrack his Lihau‘ula project, a process that allows developers to request exemptions or modifications from the County Code. In exchange, the project must have more than 50 percent workforce homes. Lihau‘ula is 68 percent affordable, according to project manager Kyle Ginoza.

During a project presentation last week, Ginoza said 40 three- and four-bedroom homes, each design with two baths, would be designated for West Maui residents earning between 80 to 140 percent of the area median income (ranging from maximum sales prices of $506,400 to $815,235). Another nine 10,000 square foot vacant lots would be sold to residents for market rates of $250,000 to $350,000. Ten 1-acre vacant lots would be sold for $350,000 to $500,000.

The 40 affordable units follow the 201H affordable housing process and Maui County Code 2.96 requirements, Ginoza said. Also, 100 percent of the 59 units would be sold to residents, preferably those in West Maui, with no allowance for short-term rentals.

The project would include individual wastewater systems and a private water system.

Located on 28 acres off Luawai Street, the project is located between Olowalu General Store and Camp Olowalu. With approvals, home construction could begin in 2022.

The meeting was recessed to 9 a.m. Monday.