The Schuler Division of D.R. Horton Inc. will build 40 single-family homes and duplexes in Upcountry Maui after paying $6.8 million to Dowling Co. for acreage within the Kulamalu master-planned community.

The project adds to Schuler's growing presence on the Valley Isle, where it is either planning or developing about 350 homes in the Legends and Na Hoku projects near Kahului and another 250 condominiums in the Opukea and Ho'onanea developments near Lahaina. The newest project, called the Cottages at Kulamalu, will have 12 single-family homes and 28 duplexes on 6.4 acres.

Mike Jones, Schuler Division president, said work on the vacant Kulamalu site should begin next month. The first homes at Kulamalu are expected to be ready in early 2008.

Dowling's Kulamalu community includes the Maui campus of Kamehameha Schools and a new University of Hawai'i astronomy center. Plans call for development of retail and office space, restaurants and a police substation.