Hanapēpē expansion includes plans for affordable rental-to-ownership housing for Hawaiian beneficiaries.
HANAPĒPĒ, KAUAʻI — The state Department of Hawaiian Home Lands (DHHL) is offering 832 residential homestead project leases on Kauaʻi, including 82 lots planned for an expansion of an existing Hawaiian homestead community in Hanapēpē.
The lease offering, scheduled for Saturday, Oct. 31, at the Royal Sonesta Kauaʻi Resort in Līhuʻe, includes 750 future residential lots in Līhuʻe and 82 lots in Hanapēpē Phase II.
The Hanapēpē project, located off Moi Road near Hanapēpē Park, will expand an existing community of 47 homesteads. Construction on the approximately 28-acre expansion began in 2023, with infrastructure improvements including roads, utilities and drainage.
Plans for the development also include affordable rental housing for lower-income Hawaiian beneficiaries, with an option to purchase their homes after 15 years.
According to DHHL’s current project information, 30 rental-to-ownership homes are planned through local developer Mark Development. More recent reporting indicates that as many as 40 rental homes could be included in the initial development.
The approximately $23 million infrastructure project received $18 million from a historic $600 million legislative appropriation to DHHL in 2022.
While the project was initially expected to be completed in late 2024, DHHL’s current development schedule estimates completion in November 2027.
The 832 leases being offered are considered project leases, meaning beneficiaries may receive lease awards before their residential lots or homes are ready for occupancy.
Under the Hawaiian homesteading program, eligible beneficiaries can receive residential land leases for $1 annually, although the cost of purchasing or constructing a home remains their responsibility unless participating in a rental housing program.
Westside Ledger is seeking additional information from DHHL regarding the Hanapēpē project’s construction timeline, the number of rental-to-ownership homes planned, and when beneficiaries can expect to occupy their homes.
As the development progresses, Westside Ledger will continue following its impact on Hawaiian homestead families and the broader Hanapēpē community.
Sources: Department of Hawaiian Home Lands; Mark Development, Inc.