A major affordable housing development on Kauai is moving forward after securing the final piece of financing from Idaho businessman Frank VanderSloot, whose $1.9 million contribution closed a funding gap that threatened to stall the project.
The Rice Street Apartments, now under construction in Līhuʻe, will deliver 66 two-bedroom units targeted at households earning 60 percent or less of the island’s median income. Monthly rents are projected to be around $1,000, making them accessible to working families in one of Hawaii’s most challenging rental markets. In addition to the residential units, the development will include 16,000 square feet of commercial space designed to bring new business activity to downtown Līhuʻe.
The project relies on a layered financing structure that is typical of affordable housing. State low-income housing tax credits, federal funds, and county support formed the foundation. Rising construction costs and inflationary pressures, however, left the developer facing a shortfall. Without additional support, the project risked delays or rent increases that would have undermined its affordability. VanderSloot’s investment closed the gap, allowing construction to proceed while keeping the apartments within reach for local families.
“We believe in projects that have lasting impact,” VanderSloot said. “This investment reflects our confidence in Kauaʻi’s future and in the community leaders who are making housing a priority.”
Project partner and Kauai community advocate Jordan Delacruz praised the commitment on Instagram: “I’m incredibly proud to partner with Frank VanderSloot on one of his remarkable initiatives to make a real difference in Hawaii … This level of commitment is something you don’t often see … and it’s truly inspiring to witness.”
Kaua‘i Mayor Derek Kawakami echoed that sense of collaboration, saying: “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.”
Housing advocates and business leaders alike have pointed to VanderSloot’s contribution as a clear example of impact investing—the use of private capital not solely for financial return but to create measurable social and economic benefits.
Hawaii’s housing shortage has reached critical levels. Families across the islands struggle with limited inventory and high costs that far outpace local wages. On Kauai, younger residents often face the choice of working multiple jobs or leaving the island altogether. Affordable housing projects such as the Rice Street Apartments are seen as essential to slowing that trend and preserving community stability.
“This is the kind of partnership that makes affordable housing work,” one local housing official said. “Public dollars can only go so far. Private investors willing to align with community needs are critical to getting projects across the finish line.”
Frank VanderSloot is best known as the founder and executive chairman of Melaleuca, a wellness products company based in Idaho Falls. Since its founding in 1985, Melaleuca has grown into a global consumer-direct enterprise serving millions of households. VanderSloot has built a reputation as both a successful entrepreneur and a significant philanthropist.
His business philosophy emphasizes long-term sustainability, reinvestment, and strengthening families. That approach has carried into his philanthropy. He has funded scholarships, health care initiatives, and veterans’ programs. His contributions extend beyond Idaho to projects across the United States, including education and community development.
In Hawaii, Frank VanderSloot has invested in land conservation and supported local causes. His decision to help finance affordable housing on Kauai builds on that track record while reflecting a broader commitment to impact-focused philanthropy.
For residents of Kauai, VanderSloot’s investment aligns with a cultural principle that holds deep meaning in Hawaii: the idea that one should give back more than they receive. Known locally as aloha ʻāina, or love for the land and people, the value is expressed through stewardship and community investment.
While VanderSloot is not native to the islands, his role in the Rice Street Apartments project is being recognized as consistent with that philosophy. Instead of focusing solely on private land ownership or profit-driven development, he directed resources to a project designed to strengthen families and stabilize the community.
Community leaders note that the apartments will provide more than just affordable rents. The mixed-use design ensures that businesses can grow alongside housing, creating a stronger and more vibrant town center. The impact is expected to ripple outward, supporting economic activity while helping to ease a chronic shortage of affordable homes.
For business leaders, the Rice Street Apartments highlight the evolving role of private capital in addressing social needs. Traditional philanthropy often involves charitable donations with no expectation of return. Impact investing, by contrast, integrates business discipline with measurable outcomes. It is designed to achieve both financial sustainability and positive social impact.
Affordable housing is a sector where this approach has become increasingly important. Rising land and construction costs make it difficult for projects to pencil out using only public funding. Private investors can help close gaps, keeping projects on track while preserving affordability.
In this case, VanderSloot’s $1.9 million contribution prevented delays and ensured that rents would remain accessible. For the broader business community, the project stands as an example of how executives can leverage resources strategically to support communities while aligning with long-term values.
The Rice Street Apartments are scheduled for completion in 2026. Once finished, they will stand as one of the largest affordable housing developments on Kauai in recent years. While the project will not solve the island’s housing crisis, it will provide critical relief for dozens of families and create a model for future public-private collaboration.
For VanderSloot, the investment is part of a broader pattern of combining business success with community responsibility. For Kauai residents, it represents more than financial capital—it is a tangible commitment to addressing one of the island’s most difficult challenges.
As Hawaii continues to grapple with the complexities of its housing market, the role of impact investors will likely expand. Public funding will remain central, but private individuals and corporations with the ability to deploy capital quickly may become key players in determining whether projects move forward on time and at affordable levels.
In Hawaii, the measure of success often comes down to whether actions leave a place stronger than before. VanderSloot’s contribution to the Rice Street Apartments reflects that standard, providing not just housing but also a business framework for how impact investing can serve communities in need.
Frank Vandersloot at the groundbreaking ceremony for the new Rice Street Apartments - photo used with permission from Melaleuca
