Lanai project clears last hurdle
Development would create 150 affordable, market-rate rental units
An affordable and market rate rental housing project on Lanai cleared a major final hurdle Wednesday, as the state Land Use Commission approved a change from agricultural to urban use for 56 of the 76 acres where the 150-home rental project will be built.
All seven commissioners at the virtual meeting voted in favor of the district boundary amendment for the Hokuao project being proposed by Pulama Lana‘i, the entity managing the island for majority landowner Larry Ellison. The remaining 20 acres did not need any state land use changes, company officials said.
Commissioners said housing is very much needed on the island and commended Pulama for its work on the project that will sit just outside of the city. Eight people testified, all of whom were in favor of the project, saying the lack of housing is even keeping former residents from returning home and forcing some workers to live in hotel rooms.
The project came under earlier scrutiny from Maui County Council members, some of whom previously said that they wanted to see more affordable rentals in the mix, or perhaps see the whole project made affordable.
The rental project will have 150 two-bedroom, two-bathroom single-family homes, of which 76 will be affordable in perpetuity and 74 will be market rate, putting the project just over the 50-percent affordable threshold needed under the state’s fast-track approval process.
On Sept. 3, the council gave its approval for the project under the fast-track process, which allows exemptions from certain rules if the project is at least 50 percent affordable.
The homes will have solar panels with backup batteries and will be fully furnished. Utilities will be included in the rent for the affordable homes and landscaping will be maintained by Pulama. The development will also feature a community center and park open to the public as well as on-site parking and street parking and pocket parks along the south border. The first homes are projected to be ready in 2023.
Commissioner Lee Ohigashi of Maui made the motion to approve the district boundary amendment and its conditions, saying the project will help with the “critical need” for housing on Lanai, Maui and the state.
He added that both Keiki-Pua Dancil, senior vice present for government affairs and strategic planning for Pulama Lana‘i, and Pulama Lana‘i President Kurt Matsumoto, who both testified at the meeting, assured him that the project is intended for residents and workers on Lanai.
Matsumoto told Ohigashi at the meeting that the homes would not be for short-term rentals.
Ohigashi said he liked that Pulama will be developing infrastructure that Maui County could also use for its affordable housing project next door.
Commissioner Dawn Chang hoped that Hokuao would be a “model” for others to follow and became emotional as she spoke about her affirmative vote.
“But it demonstrates that when you have a receptive landowner and you have a CEO who has a connection to this place, who brings sensitivity to the vision and policies that
honors and respects the community and the place, it’s that kind of synergy that I think this community has desired for a long time,” Chang said, alluding to Matsumoto being a Lanai native.
But Chang also noted that it probably took some “coaching,” as Ellison is no pushover, but said that the company is “in a good place” to take up such a project.
Chairman Jonathan Likeke Scheuer also voted in favor but raised some “misgivings,” including the ability of families to pass down housing to their children. Scheuer said what allowed him to be able to live in Hawaii was that his parents were homeowners and that with rental projects, a family cannot build equity. However, he added that he did see “many merits” with rentals as well.
With county and state approvals now in hand, the project just needs construction and other permits, which it expects to get by next year. Pulama Lana‘i said the project would be fully completed in 2025. The company is funding the project on its own and said due to the private financing, it is not disclosing a cost.