In a move aimed at addressing the persistent need for affordable housing, Hawaii County's Office of Housing and Community Development announced the acquisition of the Dolphin Bay Hotel in Hilo. This initiative, reported by the Honolulu Star-Advertiser, involves the conversion of the hotel's existing guest rooms into 18 affordable rental units. This project is supported by federal funds from the Emergency Rental Assistance 2 Program.
The acquisition reflects a growing trend of repurposing existing properties to address housing shortages. The units, which will include studio, one-bedroom, and two-bedroom apartments, will be available to residents earning up to 50% of the area median income. The county anticipates the first units will be ready to rent in early 2026, pending renovation and permitting. This project is just one example of how the County is actively working to provide more affordable housing options, which is a critical need throughout the islands.
This follows other efforts to convert existing properties into affordable housing. For example, Big Island Video News reports that the county purchased the hotel for $2.68 million. The county's previous efforts include using funds to acquire the Manago Hotel with the purpose of creating affordable workforce housing, according to a County of Hawaiʻi News article from January 2024.
The initiative to convert the Dolphin Bay Hotel underscores the impact of government intervention in Hawaii's real estate market and its direct impact on investors and developers. Such projects can create opportunities for local construction firms and service providers. This also comes at a time when workforce housing projects at historic hotels have faced challenges, as a Civil Beat article points out. These types of projects can contribute to local economic development, while addressing the need for affordable living arrangements for Hawaii's residents.
