A Mormon Church affiliate is planning a 663-acre development in Malaekahana that would create up to 550 affordable homes between Kamehameha Highway and the Ko'olau mountains.

Hawai'i Reserves Inc., a land management arm for The Church of Jesus Christ of Latter-day Saints, has been planning the community since it bought the land two years ago and should have a preliminary plan finished by the end of the year.

The vision is for a mix of single-family and multi-family homes affordable to most workers in La'ie.

Though potentially several years away from breaking ground, the Hawai'i Reserves project would help meet a pressing need for more affordable housing in a state where home prices are being driven further out of reach of many residents.

During the past two months, half of all single-family homes on O'ahu sold for more than $600,000, which is about double what the median price was in 2001 and $100,000 more than prices at the start of this year.

Hawai'i Reserves, through a spokesman, said there was nothing new to announce in the company's planning process and declined to comment.

LA'IE HOTEL IN PLANS

The company manages or owns roughly 7,000 acres of land in and around La'ie, most of which was purchased in 1865 by the church that also operates Brigham Young University-Hawai'i and the Polynesian Cultural Center, and plans to replace the 48-room La'ie Inn with a 200-room hotel.

Adding more housing has been on the church's agenda for several years to help provide residents — roughly 90 percent of whom are members of The Church of Jesus Christ of Latter-day Saints — with homes close to where they work.

In recent years, more families have moved farther away to places that have added new subdivisions like Kahuku.

"There's not an empty lot in La'ie," said John Elkington, a 34-year La'ie resident who owns his home and is director of housing for BYU-Hawai'i. "I have family and children that would like to live in the community."

Jack Hoag, Hawaii Reserves chairman, said in a 2001 Advertiser interview that the company wanted more homes built in the next five years. "The community badly needs some additional housing," he said at the time. But planning and permitting new homes in Hawai'i is often a particularly slow process.

$10 MILLION FOR SITE

Hawaii Reserves initially contemplated housing on a site behind its La'ie Temple, but in 2003 saw a nearby parcel owned by Campbell Estate as being more conducive to its community development plan, according to a June article in the church-sponsored Kaleo o Ko'olauloa community newspaper.

Hawaii Reserves bought the 663-acre Campbell site in Malaekahana for about $10 million two years ago, according to property records, and began incorporating the property into a revised master plan.

COMMUNITY HAD A SAY

Community input was solicited earlier this year through a survey and town meeting, and results are being worked into the draft development plan, according to the Web site for Hawaii Reserves.

Elkington, who is an area neighborhood board member and attended the community meeting, said the general response from residents was a desire for a planned, affordable community with more shopping, an elementary school and parks.

According to the Kaleo o Ko'olauloa report, the survey found that about 60 percent of area residents rent while 92 percent would rather own their home, and that 86 percent of residents said it was difficult to find housing in La'ie.

Another strong community desire is that homes be for the existing resident workforce, Elkington said, adding that Hawaii Reserves is considering giving priority to employees of Polynesian Cultural Center, the university and other businesses and church entities.

"We don't want investors coming in and buying and selling," he said. "You would keep the property in the hands of those who live here."

THROUGH COVENANTS

Elkington said one way to help ensure that would happen would be through covenants. Selling homes on land leased from Hawaii Reserves would also give the church long-term control of community real estate and help reduce home prices for buyers.

Though community and planning work is well under way along with an environmental survey, obtaining necessary permits including a land zoning change from agriculture use to residential use, put the project on more of a five-year horizon for completion.

"A lot of people get frustrated by the time it takes to do this," Elkington said. "It's a slow process. I feel very good about the future of La'ie."

Reach Andrew Gomes at agomes@honoluluadvertiser.com.