Ground blessing launches new affordable housing community and Rice Street revitalization in Lihue
Riverbend Management will hold a traditional ground blessing ceremony Wednesday for its Rice Street Apartments — a mixed-use affordable housing community designed to help meet Kauai’s critical housing needs while contributing to the revitalization of Lihue’s historic town core.
The project is designed to provide high-quality, affordable housing in the heart of Lihue. The Rice Street Apartments will feature 66 two-bedroom units reserved for families earning 60 percent or less of the area median income, including one manager’s unit. Rents will be approximately $1,000 per month, net of utility allowances.
The four-story development will include three levels of residential units built over a ground-floor commercial and retail space.
“Today’s groundbreaking shows the power of public-private partnerships in tackling our affordable housing needs,” said Mayor Derek S.K. Kawakami. “Mahalo to Riverbend Management, Rice Street Hale, our Housing Agency, and all our partners for making this project possible. Together, we’re building more than housing — we’re building hope for our community.”
Project development partners include Riverbend Management, Foulger Pratt and FourSight. The general contractor is Unlimited Construction, the demolition contractor is PCCC and the site contractor is Koga Engineering & Construction.
The 16,000 square feet of retail space, fully funded by Riverbend Management, is part of a broader vision to rejuvenate Rice Street’s role as a vibrant hub. This space could accommodate up to 10 local businesses.
“We are excited about the new project and hope it may help spark a broader rejuvenation of Rice Street, our community’s historic municipal center and business hub,” said Adam Roversi, director of Kauai County Housing Agency.
A long-term commitment to community
Riverbend Management first identified the property in 2018 as a prime redevelopment site to address Kauai’s housing shortage while enhancing the economic vitality of Rice Street. Despite pandemic delays and rising construction costs, Riverbend stayed the course by collaborating closely with the community, the Rice Street Business Association and Kauai County departments to earn unanimous support from regulatory agencies.
Key financing was secured in 2022, including a $10.6 million loan from Hawaii’s Rental Housing Revolving Fund, Low-Income Housing Tax Credits and conventional financing.
County support has been instrumental, including a $500,000 grant from the County Housing Development Fund, federal project-based rental assistance vouchers for 15 units, permit fee waivers totaling $888,000, affordable housing exemptions and expedited permitting.
To ensure the project’s viability in its final stages, Riverbend Management owner Frank VanderSloot personally contributed approximately $1.9 million to bridge a funding gap. His commitment not only safeguarded the project’s future but also underscored the importance of partnerships in community development.
“Kauai’s housing shortage is a real challenge, and we’re honored to join with the county and community partners to help make a difference,” VanderSloot said. “This project represents what’s possible when we work together to create solutions that strengthen families and revitalize communities.”
Construction and community impact
Demolition is now complete, and with all permits secured, construction on the foundation of the Rice Street Apartments will begin immediately. It is anticipated to take approximately 18 months.
Beyond addressing urgent housing needs, the project is expected to energize Rice Street’s walkability, boost local commerce and contribute to the long-term vibrancy of Lihue’s historic district.
Riverbend Management points out that Kauai County has been a steadfast partner, providing grants, vouchers, fee waivers, and fast-track processes, ensuring this mixed-use development benefits local working families.
“We believe in projects that have lasting impact,” VanderSloot said. “This investment reflects our confidence in Kauai’s future and in the community leaders who are making housing a priority.”
Riverbend Management would like to acknowledge Central Pacific Bank, which accommodated a relocation of its Lihue branch to support this affordable housing project.
About Riverbend Management
Riverbend Management, owned by entrepreneur Frank VanderSloot, is a privately held investment firm based in Idaho Falls, Idaho. The company manages assets in real estate, property, and agriculture — including the nationally recognized Riverbend Ranch. Through partnerships with local governments and community groups, Riverbend supports projects that strengthen communities, create housing opportunities and foster economic vitality.
