HONOLULU – Gov. Linda Lingle has released $1,150,000 to complete the first phase of construction of low-income senior housing at the Hale Mahaolu Ehiku complex in Kihei, Maui. The project is being developed by Hale Mahaolu.

To date, 34 one-bedroom affordable rental units have been completed. This grant-in-aid will allow for the construction of 21 additional units, as well as a manager's unit, a Harry and Jeanette Weinberg South Maui Senior Center, an adult day care center and an office building to house Hale Mahaolu administrative staff and operations. Subsequent phases will bring the total number of units to 114 and also add a residential care home, dental office, community police substation and office space for support services.

"Increasing access to affordable housing in Hawai'i is a priority for our Administration," Lingle said.. "I applaud Hale Mahaolu for serving as trusted partners in this important effort and for helping to make South Maui's first affordable housing project for our kupuna a reality. Every time affordable units are added to the market, the larger community benefits."

Incorporated in 1967, Hale Mahaolu is a non-profit organization that develops, owns and manages low- and moderate-income housing for families, the elderly and disabled residents in Maui County. It currently manages 13 properties on Maui, Lana'i and Moloka'i consisting of more than 900 units.

"The Hale Mahaolu Ehiku complex will help seniors age in place by providing them with affordable rental options," said Roy Katsuda, executive director of Hale Mahaolu. "In addition to housing, the on-site adult day care center will help families throughout South Maui cope with the demands of care giving."

The project is located on six acres at the corner of Old Welakahao Road and Liloa Drive in Kihei. Rents for Hale Mahaolu Ehiku are subsidized by federal low-income housing programs and are generally based on 30 percent of the residents' adjusted gross income.

The total cost for the first phase of construction is $20,871,436. Other funding has come from a combination of sources, including federal Housing and Urban Development (HUD) programs, the Weinberg Foundation, Maui Adult Day Care Centers, Hale Mahaolu, Federal Home Loan Bank, Dowling Company, Bank of Hawaii, Low Income Housing Tax Credit, Maui County and others.

Construction is scheduled to be completed in April 2009.