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Affordable Housing

Affordable housing projects provided by the Hawaii Housing Finance and Development Corporation (HHFDC)

What is HHFDC?

Hawaii Housing Finance and Development Corporation (HHFDC) is authorized under Chapter 201H, Hawaii Revised Statutes (HRS) to develop or assist in the development of certain housing projects.

What is Affordable Housing?

Affordable Housing allows eligible and qualified applicants to purchase at below market prices. Purchase prices are income-based and income limits will vary by project. Income limits are a percentage of Area Median Income (AMI). AMI is established by the U.S. Department of Housing and Urban Development. In the case of Affordable Housing units offered for sale at Kapiolani Residence for example, a buyer’s total household income may not exceed 120% of AMI.

What are HHFDC Eligibility Requirements?

Applicant must meet the following:

  • Be a U.S. citizen or a permanent resident alien.

  • Be at least eighteen years of age.

  • Be domiciled in the State of Hawaii and shall physically reside in the dwelling unit purchased;

  • Have a sufficient gross household income to qualify for the loan to finance the purchase.

  • Is a person who either oneself or together with spouse or household member, does not own a majority interest in fee simple or leasehold lands suitable for dwelling purposes or more than a majority interest in lands under any trust agreement or other fiduciary arrangement in which another person holds the legal title to the land; and

  • Is a person whose spouse or household member does not own a majority interest in fee simple or leasehold lands suitable for dwelling purposes or a majority interest in lands under any trust agreement or other fiduciary arrangement in which another person holds the legal title to the land, except when husband and wife are living apart under a decree of separation from bed and board issued by the family court pursuant to section 580-71.

  • The applicant must never have purchased a home sponsored by the Hawaii Housing Authority, HFDC, HCDCH, HHFDC or any County under chapters 359G, HRS, 201E, HRS, 201G, HRS, or 201H, HRS.
    HHFDC, on an individual-case basis, may allow a person who had previously purchased a home to reapply when:

-The State or country repurchased the first home and there has been a significant change in one of the following: family size, place of employment, or income;

-The State or County repurchased the first home and the sale was caused by extreme hardship such as family death, divorce, or loss of employment or disability;

-No profit was made on the sale of the first home; or

-The first home was sold at a restricted sales price and then it was sold to a qualified resident whose income did not exceed 120% of the rea median income.

  • An applicant who purchased an affordable unit in a multi-family project developed or sponsored by the HHFDC may be eligible to reapply provided that all of the following requirements are met:
  • Applicant's household size has increased and exceeds the permissible household size for the unit type as determined by prevailing county building and housing codes:
  • Applicant's household size is determined by the number of owners on title and their dependents;
  • Applicant has resided in the home for at least a year;
  • Applicant's current home will be purchased by HHFDC according to the HHFDC's Use, Sale and Transfer Restriction prior to the closing of the purchase of the second larger unit; and
  • Except for the multi-family affordable unit owned, applicant meets all other "Qualified Resident" requirements

What are project requirements?

Income Preference

Income limits vary by project.

The total household income is based on the incomes of the applicant, spouse and all household members 18 years and older who are presently living within the household or who shall physically reside in the unit purchased. If applying with a co-applicant, and/or co-applicant and spouse, all incomes from co-applicant, co-applicant and spouse and household members 18 years and older will be added to establish the total household income.

HUD establishes the median income annually. The total household income will be established using the then effective HUD median income.  

What is included in income?

  • Full time job
  • Part-time jobs comprising a 40-hour work week
  • Cost of living allowance (COLA)
  • Dividends, Interest, Royalties
  • Pensions or annuity distribution
  • VA compensation
  • Net rental income
  • Alimony or child support
  • Social security benefits
  • Workers compensation

What is not included

  • Overtime income
  • Bonuses
  • Other income from secondary part-time employment

What are HHFDC's Restrictions?

  • Ten (10) Year Restrictions on Use, Sale and Transfer
  • For a period of 10 years after the purchase (recordation date), the HHFDC has the first option to repurchase the property from the homeowner
  • Future refinancing of the property is limited where additional financing cannot exceed the above repurchase price
  • The property purchased under Chapter 201H, Hawaii Revised Statutes, shall be occupied by the purchaser at all times during the 10-year restriction period
  • Shared Appreciation Equity (SAE) Program
  • The SAE Program gives the buyer an opportunity to purchase a below-market priced unit and in return the buyer agrees to share the property's future net appreciation with the State (The revenue received from this program will be used to fund additional affordable housing projects for the residents of Hawaii.)
  • The SAE program restriction will continue to be in effect until the HHFDC is paid its share of the appreciation and removes the restriction. SAE must be paid at the time of sale, transfer or rent. SAE can be paid at any time after closing.
  • The formula for calculating SAE is: Current Fair Market Value minus the Purchase Price, divided by Current Fair Market Value. This percentage share is determined prior to closing based on the appraised value of the property purchased.

What is the Process for Affordable Housing?

Applications received by the published deadline will be eligible for a public drawing. The public drawing number will rank the applicants within priority groups based on household income and household size.

Approximately 6 weeks after the close of the application period, the HHFDC will conduct the Public Drawing.

Property Selection

  • Sales agent will notify applicants in writing of the date, time and place for unit selection
  • All applicants must be present to select a unit or designate a representative using Power of Attorney
  • All Affordable Housing unit buyers must attend and successfully complete a Homeownership Counseling Class approved by HHFDC prior to the close of escrow