July 15, 2003

Bank of Hawaii, First Hawaiian Bank Obtain $1.06 Million Federal Grant To Assist Hale Mahaolu Elderly Housing in Kihei

(Honolulu, Hawaii, July 15, 2003) Bank of Hawaii and First Hawaiian Bank have received a $1,060,000 Affordable Housing Program grant from the Federal Home Loan Bank of Seattle to help build a project for the low-income elderly in Kihei, Maui. The $11.1-million Hale Mahaolu Ehiku project, to be developed by Hale Mahaolu, will consist of 53 rental units for the elderly, a senior center and an adult day-care building.

"Kihei is one of the fastest growing areas in the state and we're pleased to help seniors on Maui to obtain much-needed housing and social services," said Don Horner, First Hawaiian president and chief operating officer.

David Thomas, Bank of Hawaii vice chairman of Retail Banking, said, "We're pleased to support this important project, which will go far toward providing senior citizens in Kihei with quality, affordable housing and enable them to remain active, independent and contributing members of this vital, growing community."

"In these days of dwindling federal development funds, we especially appreciate the generosity of the Federal Home Loan Bank of Seattle and the trust placed in Hale Mahaolu by our sponsors, Bank of Hawaii and First Hawaiian Bank," said Development Coordinator Robyne Nishida Nakao and Executive Director Roy Katsuda of Hale Mahaolu.

Hale Mahaolu Ehiku residents will pay about $250 average per month rent, with the rest of the rent subsidized by federal low-income housing programs.

The project will be located on six acres at the corner of Piilani Highway and East Welakahao Road in Kihei. The land will be leased to Hale Mahaolu for $1 a year by the County of Maui.

Hale Mahaolu Ehiku will be constructed in two phases:

  • The first phase, expected to begin in July 2004 and be completed in 2005, will include 53 one-bedroom elderly rental units, a resident manager's unit, senior center and adult day-care building.
  • A later phase will include 66 more one-bedroom elderly rental units and an adult residential care home.

Hale Mahaolu will provide cultural, recreational, educational, and social service activities for the area's elderly at the Senior Center. The Adult Day Care Building will provide a social daytime activity program.

Bank of Hawaii is the largest independent financial institution in the State of Hawaii and the principal subsidiary of Bank of Hawaii Corporation, a regional financial services company with assets of $9.4 billion. Bank of Hawaii Corporation and its subsidiaries provide varied financial services to businesses, consumers and governments in Hawaii, American Samoa and the West Pacific.

First Hawaiian Bank ($9.3 billion assets) was founded in 1858 and is Hawaii's oldest bank. It has 56 branches in Hawaii, three on Guam and two on Saipan. It is a subsidiary of BancWest Corporation, the largest Hawaii-based bank holding company, with assets of $34.9 billion.

Hale Mahaolu is a 36-year-old private nonprofit that develops, owns and manages housing for low- and moderate-income families, the elderly and disabled. It presently manages 13 properties in Maui County with a total of over 900 units. Hale Mahaolu also provides supportive, cultural, recreational, educational and social services to its residents.

The Federal Home Loan Bank of Seattle expands housing and economic opportunities by providing funding and other banking services essential to community-based financial institutions. The bank invests 10 percent of its earnings in projects that support affordable housing development. One of 12 Federal Home Loan Banks in the nation, the Seattle Bank serves financial institutions in Alaska, Hawaii, Idaho, Montana, Oregon, Utah, Washington, Wyoming, American Samoa and Guam. The Seattle Bank is privately owned and managed with assets of $43 billion. To apply for an Affordable Housing Program grant, visit www.fhlbsea.com for details.