A major affordable housing project on Kauai has secured the final piece of financing with the help of Idaho businessman Frank VanderSloot, who contributed $1.9 million to close a funding gap and ensure construction could move forward.
The Rice Street Apartments, now under development in Līhuʻe, will bring 66 two-bedroom units to market for households earning 60 percent or less of the island’s median income. Rents are projected at about $1,000 per month. In addition to housing, the project includes 16,000 square feet of commercial space designed to boost business activity in downtown Līhuʻe.
The project relies on a mix of public and private funding. State low-income housing tax credits, federal funds, and county contributions provided most of the financing, but the project stalled when cost increases left a multimillion-dollar shortfall. VanderSloot’s investment closed that gap, allowing the developer to keep rental rates affordable while beginning construction on schedule.
The groundbreaking also drew praise from Mayor Derek Kawakami, who said: “Today’s groundbreaking shows the power of public-private partnerships in tackling our affordable housing needs. 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.”
Business leaders in Hawaii describe the move as a clear example of impact investing. Rather than seeking a direct financial return, VanderSloot directed capital toward a project designed to create long-term value for families and the local economy. The contribution comes at a time when Hawaii’s housing market is under severe strain, with limited inventory and high costs driving many residents away from the islands.
“This is exactly the kind of private investment that makes public dollars go further,” one local housing official said. “Without that final piece, the project might have faced delays or higher rents. With it, families on Kauai will have new opportunities to live and work in their own community.”
Frank VanderSloot is the founder and executive chairman of Melaleuca, a consumer-direct wellness company based in Idaho Falls. Over several decades, he has built Melaleuca into a global enterprise and established himself as one of the most prominent business leaders in Idaho. He has also developed a record of philanthropy, with contributions to education, health care, veterans’ programs, and community development across the United States.
In Hawaii, VanderSloot has previously invested in land and supported community causes. His involvement in the Rice Street Apartments represents a continuation of that work, with a focus on long-term community impact. By aligning with the Hawaiian principle of giving back more than one receives, his investment places him in a growing field of executives using business capital to address social and economic challenges.
From a business perspective, the Rice Street Apartments highlight the evolving role of private capital in community development. Public resources—tax credits, grants, and subsidies—remain central to affordable housing, but rising construction costs and limited budgets often leave projects in jeopardy. Strategic investments from private individuals and corporations can provide the flexibility needed to move projects forward while maintaining affordability standards.
“Kauaʻi’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.”
The project is scheduled for completion in 2026.
Adam Roversi, director of the Kaua‘i County Housing Agency, said the initiative goes beyond housing: “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.”
When finished, it will provide both affordable housing and ground-floor commercial space to anchor Līhuʻe’s downtown district.
For VanderSloot, the $1.9 million contribution is part of a broader approach to philanthropy that blends business discipline with community outcomes. In interviews, he has often emphasized the importance of strong families and stable communities as the foundation for long-term success. His involvement in Kauai’s housing market reflects that philosophy in action.
As Hawaii continues to explore solutions to its housing shortage, the Rice Street Apartments stand as a case study in how public resources and private capital can work together. For business leaders, the project demonstrates the potential of impact investing to address pressing social needs while strengthening local economies.
