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Workforce Housing

FAQs for the Workforce Housing program

Workforce Housing 2011 Mauka Area Rules FAQ

What is Workforce Housing?

On Oahu, the Kaka`ako district in Central Honolulu is becoming an attractive and convenient residential community that represents a unique housing opportunity for Hawaii residents trying to relocate closer to the Honolulu business district and Waikiki and substantially reduce their daily commute time to work. Workforce housing is designed to provide affordable housing in the Kaka’ako area for buyers earning between 100 to 140 percent of Honolulu area median income (AMI) as established from time to time by the United States Department of Housing and Urban Development (HUD). The current AMI is $82,600.00 and 140% of that is $115,640.00 All buyers will need to go through a qualifying process to ensure they meet the HCDA workforce housing requirements as well as lender requirements.

What are the qualifications for workforce housing units?

  • Shall be at least the age of majority;
  • Shall not have a majority interest in a principal residence or a beneficial interest in a land trust on a principal residence within or without the State for a period of three years immediately prior to the date of application for a reserved housing unit;
  • Shall not have a spouse or dependent child who has a majority interest, in a principal residence or a beneficial interest in a land trust on a principal residence within or without the State for a period of three years immediately prior to the date of application for a reserved housing unit;
  • Shall be the owner or lessee and occupant of a workforce housing unit; and
  • Shall not have a record or history of conduct or behavior, including past rent payments, which may prove detrimental to other tenants or the authority. This criterion shall be applied within parameters set by federal laws on discrimination, including the Americans with Disabilities Act.

What are the income requirements for workforce housing?

The buyer’s “adjusted household income” may not exceed 140% of the Average Medium income.

The “adjusted household income” refers to the total income, before taxes and personal deductions, received by all members of the eligible borrower’s household, including, but not limited to, wages, social security payments, retirement benefits, unemployment benefits, interest and dividend payments, but not including business deductions.

What are the lender requirements?

  • Lenders will require (but not limited to) the following items:
  • 2 years tax returns
  • W-2
  • Pay stubs
  • Verification of assets
  • Gift letter with verification of funds (if receiving assistance with down payment)

What is the regulated term for workforce housing units (i.e.-how long am I required to hold the unit)?

Workforce Housing is exempt from the regulated term requirement and owners are required to hold the unit for 365 days.

How much is the down payment?

Applicants shall not be required to submit more than 10% of the purchase price as a down payment.

What is the difference between Workforce and Reserve Housing?

Workforce Housing is exempt from the buyback and equity sharing, as well as public facility dedication fees. The authority may consider additional exemptions to the Mauka Area Rules.
What is the HCDA

The Hawaii Community Development Authority (HCDA) is a State agency that was established to supplement traditional community renewal methods by promoting and coordinating public and private sector community development.

Where can I learn more about the Workforce Housing 2011 Mauka Area Rules?

The HCDA website has copies of all current rules and can be found at: http://dbedt.hawaii.gov/hcda/plans-rules/