A large affordable housing effort on Hawaii Island is officially underway. The Hawaii Island Community Development Corporation, or HICDC, held a groundbreaking and blessing ceremony for the 440-acre Koaiʻe Self Help Affordable Housing Project in Waimea, Big Island Video News reported.
Phase one: 39 self-help homes
According to HICDC, the first phase will include 39 self-help homes, with access from Kawaihae Road via Waiula Drive. Over time, the nonprofit says, the overall project will include self-help housing, single-family homes for sale and potentially low-rise multifamily housing, along with future parks, open space and gathering areas.
HICDC says water has been secured for the first phase. Road and utility construction for the subdivision is estimated at $8.8 million, and Ludwig Construction is set to begin that work in November, Big Island Video News reported.
How the job will run
HICDC's news release lays out the sequence:
- Road and utility construction (about 9 months): HICDC will monitor subdivision construction, evaluate applicant eligibility and process loan applications.
- House construction (about a year): HICDC will manage house plans and permits, procure subcontractors, train and supervise self-help builders on safety and construction, coordinate subcontractors and inspections, and handle loan funds through home completion.
In a self-help model, future homeowners put in their own labor on the houses under supervision, alongside subcontractors who handle specialized work.
A land and cash gift
The project grew out of a major gift. HICDC Executive Director Keith Kato said in the release that the nonprofit received a 282-acre land donation from Marc and Lynne Benioff in 2023, along with $7.5 million to support site planning and infrastructure and an additional unrestricted $1 million to expand HICDC's capacity. A year later, the Benioffs added 158 acres, bringing the site to 440 acres.
"To say that we could not have done this without Marc and Lynne Benioff would be an understatement," Kato said.
Kahu Danny Akaka and Anna Akaka performed the on-site blessing, according to Big Island Video News.
An experienced builder
HICDC says it has developed more than 900 affordable housing units on Hawaii Island over the past 30 years. That includes working with more than 400 self-help builders who finished homes in communities including Ainaloa, Hawaiian Paradise Park, Kailua-Kona, Kawaihae, Keaʻau, Keaukaha, Kohala, Mountain View, Panaʻewa and Pepeʻekeo. The 40 existing self-help homes next to Koaiʻe were an earlier HICDC project.
The nonprofit has also completed more than 500 affordable rental units in Hilo, Waimea, Kapaʻau and Kailua-Kona, including a 100-unit family rental project in Kailua-Kona finished in 2024 that is fully occupied.
Why it matters for contractors
The near-term work is in site development. Ludwig Construction's roughly nine-month, $8.8 million road and utility package starting in November is the first big contract, and that kind of job typically pulls in earthwork, paving, water, sewer, drainage and electrical subcontractors and suppliers.
The next opportunity comes during house construction. HICDC says it will procure subcontractors and coordinate inspections for the home-building phase. Self-help programs still rely on licensed trades for parts of the work, which can mean steady, repeatable scopes across dozens of homes for local plumbers, electricians, roofers and other trades on the Big Island. Contractors interested in that work should get to know HICDC well before the house phase begins.
Longer term, with 440 acres and plans for for-sale single-family homes and possible low-rise multifamily, Koaiʻe could become a multi-phase pipeline of work in Waimea. Water has been secured only for the first phase, so future phases will depend in part on additional water availability. Builders should watch for HICDC announcements on later phases and the infrastructure they'll require.