Kauhale Initiative

State of Hawaiʻi Kauhale Initiative

Meaning: Kauhale – Hawaiian word for “village”  

Purpose: To quickly and cost-effectively house people experiencing homelessness while building belonging and community.   

Concept: Kauhale are communal living spaces, often envisioned as tiny homes, prefabricated homes, or other modest, low-cost housing units with bathrooms and kitchens shared by multiple households. A Kauhale could also be created in an existing apartment, dormitory, or office building.  

Key Points 

  • The defining feature of a Kauhale is that it functions like a village, with people taking care of place and each other.  
  • The Green Administration’s goal is to establish a minimum of 12 Kauhale projects over the next three years, with 6 on Oʻahu, and 2 in each of Hawaiʻi, Maui, and Kauaʻi Counties. 
  • Construction costs for Kauhale will vary widely depending on the design and infrastructure needs of the property.  
  • Operating costs for a Kauhale may initially be comparable to the operating costs for transitional housing projects of a similar size but with the intention to reduce costs over time, as residents (with community support) assume greater responsibility for aspects of village operations. 
  • Every Kauhale will be a partnership between government and community with State funding used to empower community champions and to fill resource gaps, rather than shouldering the full cost of Kauhale construction and operation.  

Background 

  • Deeply Affordable Housing 
    • Called “opportunity housing” or “step-up housing” in other places, Kauhale are intended to be a deeply affordable home for as long as a person needs it, free of time-limited expectations for when residents will “graduate” to market-rate housing. 
    • Hawaiʻi has one of the most expensive state-wide housing markets in the county, and many people may not be able to increase their incomes enough to afford what the market has to offer.
    • Village living can aid in meeting the goal of offering deeply affordable housing with communal baths and kitchens that reduce development costs, and a sense of communal responsibility that can keep operating costs low.  
  • Construction 
    • Construction costs for Kauhale will vary widely depending on the design and infrastructure needs of the property. Possibilities include: 
      • Existing buildings or a new-build cluster of tiny homes. 
      • Renovations to existing structures or the installation of prefabricated homes 
      • A complete build with new infrastructure and construction 
      • Other innovative designs proposed by communities 
      • While costs will vary, the Administration aims for an average capital cost of $2.5 million for a 50-unit Kauhale project that can house up to 75 people. At $50,000 per unit, this target cost is far below the typical per-unit cost of housing development.  
  • Operations 
    • Operating costs for a Kauhale may initially be comparable to the operating costs for transitional housing projects of a similar size. For example, experienced service providers estimate that transitional housing for 75 people costs approximately $1.5 million annually to operate.  
    • The Administration aims to demonstrate that Kauhale operating costs can be reduced over time, as residents (with help from housed community supporters) grow their capacity to assume responsibility for aspects of village operations such as security, grounds-keeping, maintenance, and governance.   
    • With the development and operating-cost savings, the Administration’s goal is to achieve a sustainable price point in the range of $500 per month. 
  • Community Partnerships 
    • Kauhale will be created through collaboration between the State, Counties, and community entities.   
    • Example A: The County may have usable land, private donors may be willing to fund construction, and the State may contract with a community organization to operate the village.  
    • Example B: A faith-based organization may have land and be willing to operate a Kauhale, but needs help from the County for infrastructure, and from the State to pay for vertical construction. 
    • State funding will be used to empower communities and fill gaps, rather than the State bearing the full burden and cost of Kauhale construction and operation.