The Department of Hawaiian Home Lands (DHHL) is actively pursuing the construction of modular housing as a cost-effective solution to address its extensive waitlist, which currently has over 29,000 applicants.
Legislators are considering allocating funds to purchase a 196,000-square-foot hangar located in Kalaeloa. This space would then be transformed into a facility dedicated to manufacturing modular housing units, which could be produced at a 10% to 15% reduced cost compared to traditional building methods. The hangar, presently owned by the University of Hawai?i, is utilized for helicopter storage by the police and fire departments.
At this new manufacturing facility, the homes would be assembled and subsequently sold to beneficiaries awarded land leases. Although lawmakers have yet to finalize the financial details for DHHL to acquire the hangar, the land has been assessed at a value of $4.4 million. Additionally, Director Kali Watson has projected that refurbishing the hangar would require approximately $4.8 million.
For years, DHHL has faced significant challenges in providing adequate housing options for Native Hawaiians on its waitlist. Unfortunately, many individuals have passed away without receiving a lease for land that has been promised to them through a federal law that has existed for a century.
When parcels of land become available through DHHL, many Native Hawaiians encounter difficulties financing the construction of new homes. The department believes that modular housing can serve as a more economical alternative, with a potential output of up to 40 homes monthly from an O?ahu-based factory. “It may be our go-to approach if we find the savings is tremendous,” stated Watson to lawmakers earlier this month.
DHHL plans to collaborate with Fading West, a Colorado-based firm that specializes in off-site homebuilding. Fading West has previously undertaken projects in Hawai?i, including the construction of 82 homes for the Federal Emergency Management Agency intended for use in Lahaina.
According to Eric Schaefer, the company’s business development officer, these homes were delivered from their facility in Buena Vista, Colorado, and were ready for occupation within approximately four months of FEMA’s order. The home designs showcased on Fading West’s website are tailored to fit Colorado’s aesthetic, but in partnership with DHHL, custom designs suitable for Hawaiian neighborhoods will be developed.
The process of producing these modular homes is likened to an automotive assembly line. Schaefer mentioned that Fading West’s methodology draws inspiration from Toyota’s approach to vehicle construction. “Instead of building Corollas and Camrys, we’re building two- (and) three-bedroom homes,” he explained.
Both Fading West and DHHL anticipate that these homes could cost as much as 15% less than those built on-site in Hawai?i. Currently, new home construction in Honolulu is estimated to exceed $500 per square foot, meaning DHHL stands to save around $75,000 on each 1,000-square-foot modular home.
In a pilot initiative, Fading West intends to construct 24 homes for DHHL on Maui. These homes will be prefabricated on the mainland before being shipped to Hawaii, where local contractors will handle the installation of essential elements like roofing, plumbing, and electrical systems.
While pre-fabricated housing has faced resistance from the traditional building industry due to concerns about lower wages for construction workers, the urgency of rehousing individuals impacted by the recent Lahaina wildfire appears to have softened those concerns.
DHHL stood alone in its testimony supporting Senate Bill 1553, which proposes the acquisition of the hangar, and has yet to face any opposition. The agency previously received a historic funding boost of $600 million three years ago, most of which has been allocated to homelands projects state-wide, and they are currently seeking an additional $600 million from the Legislature this year.
Senate Bill 1553 successfully passed through the Senate Ways and Means Committee and is now set to proceed to the full Senate for a vote.
