Managers look to slice number of affordable homes
project calls for 125 houses to be built in Waikoloa over next year
HILO -- Managers of the Waikoloa Workforce Housing project are looking to cut construction costs in order to keep the project's new homes affordable.Craig Dougall, chief executive officer of Waikoloa Workforce Housing LLC, or Kamakoa at Waikoloa, said Thursday changes need to be made to keep homes built for the project affordable.
The project is moving forward, he said, but Kamakoa wants to cut back on the number of homes planned for its "Phase 1A" because of economic conditions, as well as work with project contractors to see if they'd be willing to do the work in some instances for less money.
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Dougall, however, said if the project continues under the present model, homes will cost $390,000 to $400,000 -- amounts that are far from affordable.
He said Kamakoa's plan would lower the cost per home by about $100,000, bringing the total cost per home to under $300,000.
"We're working with the county and the contractor to try and implement cost savings," Dougall said.
He said Kamakoa does not want to change the designs, but does want to negotiate better costs with contractors hired to build the homes.
Also, there would be a cost savings by not building all of the homes now, Dougall said.
He said Kamakoa expects to have the first homes occupied by the end of October, but he didn't know how many homes will be built by that time.
UniDev -- the project's developer, hired by Waikoloa Workforce Housing -- believes the solution to keeping the homes affordable is using a rent-to-own program, county Managing Director Bill Takaba said Thursday.
The county has a major interest in the project because it provided $40 million for predevelopment costs, infrastructure and public facilities, he said.
"We're trying to make sure what we're putting our money into is used as it was intended," Takaba said.
The administration intends to release a prepared statement Friday that provides more details on its position in the matter.
County Housing Administrator Steve Arnett said Thursday the county is committed to the project but wants to make sure its $40 million investment is properly spent.
Takaba said the final decision on how to proceed with the matter -- regardless of the county's or UniDev's input -- will be up to Kamakoa.
Dougall said Kamakoa plans to hold a meeting on Feb. 12 with all parties involved to discuss challenges facing the project.
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