Honolulu

Hilo’s Rainbow Drive Relic Gets $8 Million Rescue Job

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Published on May 02, 2026
Hilo’s Rainbow Drive Relic Gets $8 Million Rescue JobSource: Google Street View

Hilo’s old Memorial Hospital, the century‑old landmark tucked along Rainbow Drive, is finally getting a serious fix‑up. The County of Hawaiʻi has kicked off phase one of an $8.03 million renovation, a starter round of work aimed at shoring up the aging structure and getting it ready for a new life as a coordinated hub for housing stabilization, workforce readiness and behavioral health services.

The first phase focuses on the unglamorous but critical stuff: re‑roofing, hazardous‑materials abatement and carefully thinning out overgrown trees and vegetation near the foundation. It is the opening move in a multi‑year plan to convert the 1920s building at 34 Rainbow Drive from crumbling former hospital into a one‑stop campus for social services.

According to a county news release, Diede Construction Inc. came in as the low bidder and secured an $8.03 million construction contract for phase one. The county estimates the work will take about 12 months. The County of Hawaiʻi said crews will start by replacing roofs, removing hazardous materials and protecting the building’s foundation through selective vegetation removal.

Local reporting notes that the renovation is part of a broader, multi‑phase master plan to centralize housing and supportive services on the property. As reported by Hawaii News Now, the facility sits on nearly 25 acres of state‑owned land and already hosts shelter and permanent supportive‑housing programs operated by HOPE Services Hawaiʻi.

Phase One Work And Next Steps

The Office of Housing and Community Development (OHCD) says phase one will cover re‑roofing, selective interior demolition and the safe abatement of asbestos, lead, mold and other hazardous materials in order to seal the building envelope and keep the elements out.

Later phases are planned to tackle the guts of the building: electrical and mechanical systems, fire‑safety upgrades, Americans with Disabilities Act improvements, interior renovations and exterior repairs. Those steps would set the stage for tenant improvements and program occupancy, according to the OHCD project summary. OHCD provides the full project schedule and scope.

Funding And Timeline

The renovation is supported in part by roughly $16.6 million in federal grants, including a $13 million U.S. Department of Housing and Urban Development award and additional federal allocations that local officials say helped push the project forward. As detailed by the Hawaii Tribune‑Herald, the county previously accepted the federal funds and advanced the project through environmental review and County Council approvals.

Officials And Community Partners

“This is an important step forward for our island,” Mayor Kimo Alameda said in the county’s announcement, adding thanks to federal partners and community groups that helped keep the project moving. County Housing Administrator Kehaulani Costa likewise pointed to the federal grants as key to laying the groundwork for a single campus where residents can connect with housing services and pathways to long‑term stability, according to the county news release. The County of Hawaiʻi provided the statements.

What To Expect Next

Construction is being staged so that current shelter residents on the campus are not displaced while crews handle hazardous‑materials abatement and roof repairs. The county says the schedule will remain weather‑dependent, given the sensitivity of the abatement work and the age of the structure.

Residents who want to keep tabs on the project can find updates, bidding documents and contact information on the OHCD project page.