The affordable rentals in Kailua-Kona were supposed to be ready in 2024 and cost $50 million. The developer now hopes to finish in 2027 at a cost of $81 million.

Developer Honua’ula LLC began pushing ahead with plans for an apartment complex in Kealakehe — a North Kona community that is desperate for affordable housing — in the early days of the pandemic.

It was an uncertain time for almost all businesses, but for Honua’ula it was the beginning of a years-long legal and financial ordeal.

The project hit a wall when a Big Island housing corruption scandal erupted into public view in 2022. While the Honua’ula management was not accused of any wrongdoing, its consultant Alan Rudo was indicted and pleaded guilty to a federal corruption charge.

Then the federal government seized the land wh

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