Making affordable housing more accessible: Kapaa Homes approved for redevelopment

HONOLULU (KHON2) — Affordable housing continues to be a struggle throughout the State, but a recent redevelopment approval looks to expand Kauai’s affordable housing rental inventory for residents.

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On Tuesday, the Hawaii Public Housing Authority and Highridge Costa Development Company announced that the plan to redevelop Kapaa Homes has been unanimously approved.

Originally constructed in 1966, Kapaa Homes currently consists of 36 homes offering units that have between one to four bedrooms.

The new plan will expand the current 36 homes to 124 for families on Kauai.

“Access to affordable housing is a challenge across the island, and our Kapa‘a Homes project represents the first of several sites that will add direly needed inventory to our neighbor island communities,” HPHA Executive Director Hakim Ouansafi said.

Kauai Mayor Derek Kawakami announced the idea of taxing vacation rentals on Kauai to help generate revenue for affordable housing.

“It’s going to raise about $5.85 million in additional revenue,” explained Mayor Kawakami. “What better way to earmark all of that additional revenue every single dime and penny into our affordable housing fund.”

Construction for the project is scheduled to begin in late 2025 and will be completed in early 2027.

“This project would not be possible without the support of and partnership with our elected leaders, the planning department and countless others who recognize how critical this initiative is for the people of Kaua‘i,” Ouansafi added.