CVS Health invests nearly $35 million in affordable housing in Hawai'i

Rhea-AI Summary

CVS Health announces $35 million investment in affordable housing developments in Hawai'i, partnering with local organizations to address community needs and support residents.

Insights

Financial Analyst

The equity investments of nearly $35 million by CVS Health into affordable housing in Hawai'i is a strategic move that reflects the company's broader commitment to social responsibility. This initiative could potentially enhance the company's reputation and goodwill within the community, which might translate into stronger customer loyalty and brand value. From a financial perspective, such investments may not yield immediate financial returns but could mitigate risk by diversifying the company's portfolio beyond its core retail and healthcare services.

It's also worth noting that these investments align with current ESG (Environmental, Social and Governance) trends, which are increasingly influencing investor decisions. Companies actively engaging in ESG-related activities may attract a broader investor base, particularly those focused on sustainability and social impact. This could lead to a positive impact on CVS Health's stock as socially responsible investing continues to gain traction.

Urban Development Expert

The partnership between CVS Health and various local entities to create new affordable housing units in Hawai'i addresses a critical need within the community. The development not only provides housing but also integrates supportive social and educational programs, which could lead to long-term community development and stability. The focus on early childcare and affordable housing is in line with state priorities and demonstrates how public-private partnerships can align with government initiatives to address societal challenges.

The integration of educational facilities, such as the Bezos Academy Montessori preschool and the Kamehameha Schools-operated preschool, could have a significant impact on the local workforce by providing early education opportunities. This approach to community development is comprehensive, aiming to bolster the local economy by creating a stable environment conducive to both living and learning.

Healthcare Industry Analyst

CVS Health's investment in affordable housing in Hawai'i is an extension of its healthcare mission, addressing social determinants of health such as housing and education. By offering immunizations, health screenings and other health-related services in these communities, CVS is effectively expanding its healthcare footprint. This proactive approach to healthcare delivery, especially in underserved areas, could improve health outcomes and reduce long-term healthcare costs, which is beneficial for both the community and CVS Health's healthcare business.

Furthermore, the creation of career skills labs and the expansion of the Longs Drugs store network in Hawai'i indicates CVS Health's investment in the local workforce. Such initiatives may lead to a more skilled workforce, which could be advantageous for CVS Health's operations in the region, potentially leading to improved service delivery and customer satisfaction.

The investments are one of many initiatives ranging from retail to workforce and philanthropy that exemplify the company's longstanding commitment to the people of Hawai'i

WOONSOCKET, R.I., Feb. 21, 2024 /PRNewswire/ -- CVS Health® (NYSE: CVS) today announced its contribution of nearly $35 million in equity investments towards the creation of two new affordable housing developments in Hawai'i. Located in Lahaina, Maui and Kapolei, Oahu, the communities will also offer residents supportive social and educational programs tailored to address their specific needs. In addition to other multiple funding partners, these investments support the state of Hawai'i's priorities in early childcare and affordable housing and exemplify the power of public and private collaborations.

In collaboration with Urban Housing Communities, Ikaika 'Ohana, and Hunt Capital Partners, CVS Health invested $17.5 million to help build 200 new affordable housing units at Kaiāulu o Kūku'ia in Lahaina, Maui. This development will bring critically needed affordable housing for families in the area, much of which was devastated by the 2023 Maui wildfires. Ikaika 'Ohana, co-developer and Hawai'i-based nonprofit, will be coordinating services to residents including immunizations and health screenings, childcare, GED and ESL classes, occupational certification courses, resume preparation and job referrals, and financial counseling. In addition, the Bezos Academy will be operating a Montessori preschool onsite free of charge for the pre-school aged children living at Kaiāulu o Kūku'ia. 

"Hunt Capital Partners is proud to be part of the rebuilding of Lahaina. The affordable rental homes at Kaiāulu o Kūku'ia will be the first permanent housing to be delivered in Lahaina since the devasting fires in August," shared Steve Colón, Executive Vice President of Hunt Companies. "Our partners UHC and Ikaika 'Ohana are delivering a critically needed rental housing community that will enable 200 area families to move into homes starting this coming December."

Colón continued, "All of us at Hunt are grateful to have collaborated with the community and organizations like UHC and Ikaika 'Ohana as we create affordable housing for local families statewide, but particularly now on Maui, which needs so much of our support. With this investment, CVS Health is changing lives and helping to put island residents into their own homes."

Furthering its investment in the state, CVS Health also invested $17.3 million with The Kobayashi Group, The Ahe Group and CREA, LLC to build 169 new affordable housing units in Parkway Village at Kapolei, on the Island of O'ahu. Horizon Housing Foundation, a St. Louis-based nonprofit, will be providing no-cost services to residents, including education and building community, health, and wellness programs Kamehameha Schools, a Hawai'i-based, nationally recognized education group, will operate a tuition free preschool on the ground floor of one of the five residential buildings, along with the Board of Education and Partners in Development Foundation.

"Parkway Village is an incredible project in Hawai'i's fastest growing community that we are so proud of ," said Alana Kobayashi Pakkala, Executive Vice President and Managing Partner of Kobayashi Group. "We know the importance of affordable housing and early childhood education, especially in West O'ahu, so we're grateful for this public-private collaboration with CVS Health, City and County of Honolulu and HHFDC."

The integration of early childcare facilities into both developments aligns with the state's universal access to preschool initiative, Ready Keiki, spearheaded by Lt. Gov. Sylvia Luke. "Partnerships, such as the collaboration with CVS Health, play a pivotal role in fostering nurturing communities, where families receive comprehensive support, and our children are provided with the environment to thrive and realize their full potential," said Luke. "As we work to ensure all Hawaiʻi children are ready for kindergarten and beyond, the support from CVS Health and community partners is invaluable."

With the addition of Kaiāulu o Kūku'ia and Parkway Village, CVS Health has invested $62.2 million in affordable housing across Hawai'i to date, highlighting the company's efforts to advance health equity by addressing social determinants of health at the local level. Through these investments, CVS Health has provided historically underserved Hawai'i communities with quality housing and increased access to childcare and health care services based on the unique needs of each local population.

Beyond its affordable housing investments, CVS Health's commitment to improving the health and wellbeing of Hawai'i residents can be seen through its philanthropic efforts, workforce initiatives and expanded retail presence in the region.

Residents of Kaiāulu o Kūku'ia and Parkway Village will have access to educational opportunities and employment services and training through two new career skills labs in Kahului and Waimānalo. Funded in collaboration with CVS Health and the University of Hawai'i Maui College and Hawai'i Job Corps, respectively, the mock Longs Drugs pharmacy environments offer virtual and hands-on pharmacy technician skills training to help reduce employment barriers and provide the tools participants need to succeed in the workplace.

And recently, CVS Health opened a new Longs Drugs store in Kapolei on O'ahu, marking the company's 60^th Longs Drugs location in Hawai'i. Given the significance of local relationship to Lahaina residents, financing a new affordable housing investment after the wildfires reinforces the importance of Longs as an anchor in the community. Following the 2023 Maui wildfires, the area pharmacy team provided daily deliveries to three community shelters to help ensure continued access to medication and hosted a three-week drive-thru donation clinic to provide preventative care and essential goods to residents while working to reopen the impacted store for the community as quickly as possible.

Also, following the fires, the CVS Health Foundation committed $450,000 to several organizations providing direct relief, including the Hawai'i Community Foundation's Maui Strong Fund, the American Red Cross, and World Central Kitchen. CVS Health customers contributed over $2 million to our in-store fundraising campaign to support the Maui Strong Fund and the Maui United Way.

"These investments and collaborations echo our longstanding commitment to supporting and uplifting the people of Hawai'i," said Scott Sutton, Regional Director, CVS Health. "We're providing community members with access to meaningful affordable housing, health care, and educational and workforce opportunities to ensure that they have the resources they need to improve their overall wellbeing."

About CVS Health
CVS Health® is the leading health solutions company, delivering care like no one else can. We reach more people and improve the health of communities across America through our local presence, digital channels and over 300,000 dedicated colleagues — including more than 40,000 physicians, pharmacists, nurses and nurse practitioners. Wherever and whenever people need us, we help them with their health — whether that's managing chronic diseases, staying compliant with their medications or accessing affordable health and wellness services in the most convenient ways. We help people navigate the health care system — and their personal health care — by improving access, lowering costs and being a trusted partner for every meaningful moment of health. And we do it all with heart, each and every day. Follow @CVSHealth on social media.

Media contacts
Monica Prinzing
831-241-8294
PrinzingM@cvshealth.com  

Rebecca Ferrick
FerrickR@cvshealth.com

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SOURCE CVS Health

FAQ

How much did CVS Health invest in the affordable housing developments in Hawai'i?

CVS Health invested nearly $35 million in equity investments towards the creation of two new affordable housing developments in Hawai'i.

Where are the two new affordable housing developments located in Hawai'i?

The two new affordable housing developments are located in Lahaina, Maui and Kapolei, Oahu.

What services will be provided to residents at Kaiāulu o Kūku'ia in Lahaina, Maui?

Residents at Kaiāulu o Kūku'ia in Lahaina, Maui will receive services including immunizations, health screenings, childcare, GED and ESL classes, occupational certification courses, resume preparation, job referrals, and financial counseling.

Who will be operating a Montessori preschool at Kaiāulu o Kūku'ia in Lahaina, Maui?

The Bezos Academy will be operating a Montessori preschool onsite free of charge for the pre-school aged children living at Kaiāulu o Kūku'ia in Lahaina, Maui.

How much did CVS Health invest in the affordable housing units at Parkway Village in Kapolei, Oahu?

CVS Health invested $17.3 million with The Kobayashi Group, The Ahe Group, and CREA, LLC to build 169 new affordable housing units in Parkway Village at Kapolei, Oahu.

What services will be provided to residents at Parkway Village in Kapolei, Oahu?

Residents at Parkway Village in Kapolei, Oahu will receive services including education, building community, health, and wellness programs.

How much has CVS Health invested in affordable housing across Hawai'i to date?

CVS Health has invested $62.2 million in affordable housing across Hawai'i to date.

What educational opportunities and services will be available to residents of Kaiāulu o Kūku'ia and Parkway Village?

Residents of Kaiāulu o Kūku'ia and Parkway Village will have access to educational opportunities and employment services and training through two new career skills labs in Kahului and Waimānalo.

How many Longs Drugs locations has CVS Health opened in Hawai'i?

CVS Health has opened its 60th Longs Drugs location in Hawai'i with a new store in Kapolei on O'ahu.

What philanthropic efforts has CVS Health made in Hawai'i?

Following the 2023 Maui wildfires, CVS Health committed $450,000 to several organizations providing direct relief, including the Hawai'i Community Foundation's Maui Strong Fund, the American Red Cross, and World Central Kitchen.