Commercial space, 66 affordable rental apartments coming to Līhuʻe

A mixed-use affordable housing community will help meet Kauaʻi’s critical housing needs while contributing to the revitalization of Līhuʻe’s historic town core.

On Wednesday, Riverbend Management held a traditional ground blessing ceremony for the Rice Street Apartments, which will be built over the next 18 months.

The project is designed to provide high-quality, affordable housing in the heart of Līhuʻe with 66 two-bedroom units reserved for families earning 60% or less of the area median income.

The four-story development will include three levels of residential units, including one manager’s unit, built over a ground-floor commercial and retail space. Rents will be approximately $1,000 per month, net of utility allowances.

“Today’s groundbreaking shows the power of public-private partnerships in tackling our affordable housing needs,” said Mayor Derek S.K. Kawakami. “Mahalo to Riverbend Management, Rice Street Hale, our Housing Agency, and all our partners for making this project possible. Together, we’re building more than housing — we’re building hope for our community.”

Project development partners include Riverbend Management, Foulger Pratt, and FourSight. The general contractor is Unlimited Construction, the demolition contractor is Pacific Concrete Cutting and Coring, and the site contractor is Koga Engineering & Construction.

The 16,000 square feet of retail space, fully funded by Riverbend Management, is part of a broader vision to rejuvenate Rice Street’s role as a vibrant hub. This space could accommodate up to 10 local businesses.

“We are excited about the new project and hope it may help spark a broader rejuvenation of Rice Street, our community’s historic municipal center and business hub,” said Adam Roversi, director of the Kauaʻi County Housing Agency.

Riverbend Management first identified the property in 2018 as a prime redevelopment site to address Kauaʻi’s housing shortage while enhancing the economic vitality of Rice Street. Despite pandemic delays and rising construction costs, Riverbend collaborated closely with the community, the Rice Street Business Association, and Kauaʻi County to earn unanimous support from regulatory agencies.

Key financing was secured in 2022, including a $10.6 million loan from Hawaiʻi’s Rental Housing Revolving Fund, Low-Income Housing Tax Credits, and conventional financing. The county also provided a $500,000 grant from the County Housing Development Fund, federal project-based rental assistance vouchers for 15 units, permit fee waivers totaling $888,000, affordable housing exemptions, and expedited permitting.

Riverbend Management also acknowledged Central Pacific Bank, which had to relocate its Līhuʻe branch to support the affordable housing project.

To ensure the project’s viability in its final stages, Riverbend Management owner Frank VanderSloot personally contributed approximately $1.9 million to bridge a funding gap. His commitment not only safeguarded the project’s future but underscored the importance of partnerships in community development.

“Kauaʻi’s housing shortage is a real challenge, and we’re honored to join with the county and community partners to help make a difference,” VanderSloot said. “This project represents what’s possible when we work together to create solutions that strengthen families and revitalize communities.”

Demolition is now complete, and with all permits secured, construction on the foundation of the Rice Street Apartments will begin immediately. It is anticipated to take approximately 18 months.

Beyond addressing urgent housing needs, the project is expected to energize Rice Street’s walkability, boost local commerce, and contribute to the long-term vibrancy of Līhuʻe’s historic district.

“We believe in projects that have lasting impact,” VanderSloot said. “This investment reflects our confidence in Kauaʻi’s future and in the community leaders who are making housing a priority.”