Leaders at the Villas at Puali, a $31-million housing project in Puhi, received their building permit just last week. It is virtually sold out. “We have about 90 in escrow, and a waiting list for the remaining units,” said real-estate
Leaders at the Villas at Puali, a $31-million housing project in Puhi, received their building permit just last week.
It is virtually sold out.
“We have about 90 in escrow, and a waiting list for the remaining units,” said real-estate professional Kenneth Kubiak of Century 21 All Islands.
The units range in price from $225,000 to $335,000.
Kubiak said construction has started.
The attached, three-bedroom, single-family homes, with either two or two-and-a half baths and a two-car garage, are in a condominium format.
Kubiak said provisions are in place to ensure Villas at Puali does not become a vacation-rental haven.
“The county has a seven-year-buy-back option, so it’s anti-speculative,” said Kubiak. The homes cannot be used as vacation rentals, and must be owner-occupied.
The project is being developed by leaders at Diamond Pacific Homes, a part of Parkside Homes LLC. Matt Deal, the principal of the Colorado-based Parkside Homes, described the units as gap housing.
Deal, who has developed a number of projects on Kaua’i, said gap housing addresses the needs of those who cannot afford whatever they want, but are also not eligible for government assistance.
“We’ve tried to make it a livable neighborhood with landscaping, curbs and gutters,” Deal said.
The units will range in size from 1,379 square feet to 1,392 square feet, and come with a covered porch and lanai.
According to Kenneth Rainforth, executive on housing for the Kaua’i County -Housing Agency in the Offices of Community Assistance, the site of the development was originally planned as affordable housing, but when Grove Farm leaders decided they did not need the site for that purpose, the developer came before county officials to ask for the seven-year-buy-back clause.
If county officials were to decline the buy-back option, they would pay the developer the original price plus interest equal to the consumer price index, or no less than 3 percent.
“I think it’s good for anyone who needs housing, but not for someone who wants to be speculative,” he said.
“I think it might help the housing situation,” said Karen Ono, executive director of the Kauai Board of Realtors. “A buyer would need to be a good saver on the side to make it work.”
Deal said the parties who buy the homes have their own equity, but there are limits on appreciation they might see over time.
He said anyone wishing to sell their home before the seven-year period expires would get their sales price plus whatever appreciation has accrued on their home.
Kubiak said Puhi, with its proximity to shopping, schools and Lihu’e, is a good location for this type of project, and would encourage local home ownership.
“Matt’s doing a good job. He could have sold the homes to Californians for $400,000,” Kubiak said.
Deal said the first batch of homes should be ready by late July.
Since formation in 1995, leaders at Parkside Homes have built and sold more than 900 homes in Colorado and Wyoming.
