Maui Real Estate Blog

Gap Housing leads to Pulelehua Compromise

The planning commission gave their recommendation for the 882 Unit Pulelehua development on Monday. Maui Land and Pineapple and the planning commission were in a stalemate due to a dispute over the number of affordable housing units to be included in the project and a request for the developer to donate a 50 acre park. Maui Land and Pineapple had committed to make the project 50% affordable. Members of the planning commission wanted more than 50% of the units to be affordable since that 50% would also be covering part of the affordable requirement for ML&P’s Kapalua Mauka project. Maui Land and Pine argued that they could not cover the cost of the affordable units without having 50% of the project allocated to market priced housing.

A compromise was struck via what is known as “Gap Housing.” The current median home price in West Maui is $1,000,000. There is a good sized demographic of buyers who do not meet the requirements for affordable housing, but can not afford the mortgage on a million dollar home. The so called gap housing will be targeted towards a group of buyers that make between 141 percent and 200 percent of median income. Prices on the gap homes should range from $360,000 to $620,000. The final breakdown on housing will be as follows:

  • 352 Market priced homes
  • 255 Affordable units
  • An additional 125 Affordable units to meet the Kapalua Mauka requirement
  • 150 Gap Group Homes

The planning commission’s request for the 50 acre park was dropped. The blessing of the planning commission was a critical step for Pulelehua. However, the project still needs to go through County Council and State Land Use Commission Review.

Pete Jalbert

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