Proposal to Convert Manago Hotel Into Workforce Housing in Progress

Non profit organization Mental Health Kokua (MHK) was awarded $5,500,000 in Hawaiʻi County Affordable Housing Production Program funds to acquire the Manago Hotel with 72 market units to be converted into affordable workforce rental housing.
The proposed project includes 67 studios, 2 one-bedroom, and 3 two-bedroom units which will be available to households earning no more than 140% of the AMI. The affordability period for these units will be in perpetuity.
Upon acquisition, the Affordable Housing Production Program requires MHK to rent rooms to members of the workforce. MHK plans to transition the hotel to workforce housing while the units are occupied.
Despite circulating rumors, the Manago Hotel is not closing at the end of the month. In addition, there are no plans to close the Manago Hotel restaurant.
Minor renovations to transition the hotel to workforce housing will commence after the close of sale. .
The County of Hawaiʻi Office of Housing and Community Development is currently finalizing grant agreements and environmental reviews for each of the projects, including the acquisition of Manago Hotel. Once grant agreements are executed in the next few months, funds will be released allowing the purchase to move forward.
Per the Administrative Rules developed for the program, activities funded to increase affordable housing units (e.g. design, acquisition, infrastructure, new construction) shall be obligated within one year and result in occupancy of affordable housing units within five years from the date the grant agreement is executed. An extension can be requested. Approval is at the discretion of the housing administrator.
More information on the Office of Housing and Community Development and its programs can be found online at www.housing.hawaiicounty.gov.