The Hawaii Housing Finance and Development Corporation (HHFDC) is the primary agency charged with overseeing affordable housing, financing, and development in Hawaii.

Their website is http://dbedt.hawaii.gov/hhfdc/

1. Allows eligible and qualified applicants to purchase at below market prices
2. Homebuyers have an opportunity to live in town at a brand new development that fits their budget
3. Household limitations (subject to the City and County of Honolulu ordinances)
4. Shared Appreciation Equity (SAE) program is sharing a percentage of future net appreciation in the property with the state in exchange for the opportunity to purchase at below market prices.

1. Attend an optional educational seminar and receiveand Application Packet
2. Fill out the Application Packet and meet with a preferred project Lender for pre-qualification
3. Return the completed packet to the Sales Gallery by 5:00 pm on August 24, 2019
4. HHFDC review of applications to determine eligibility
5. Public Drawing
6. Assignment of Property Selection Number (PSN)
7. Unit Selection & Contract Signing

Affordable Housing is for buyers earning 140% and below of the Area Median Income.

The HHFDC will determine eligibility based on the information you provide in your Application Packet, including the following:

1. US Citizen or permanent resident alien
2. At least 18 years of age
3. Resident of the State of Hawaii who currently resides in the State of Hawaii
4. Shall physically reside in the unit purchased
5. Does not own a majority interest (more than 50%) in a fee simple or leasehold property anywhere in the world
6. Has sufficient gross income to qualify for the loan to finance the purchase
7. Demonstrates a need for affordable housing

The buyer will need to provide $500 at contract signing and the remainder of 5% minus the $500 after 30 days.

The buyback program ensures the home remains affordable for a minimum of 10 years and gives the HHFDC or a qualified non-profit entity the first option to purchase the property in the event of a sale or transfer during the first 10 years of ownership. Owner occupancy is required during this period. The restriction automatically terminates 10 years from the date the deed transferring ownership to the buyer, is recorded.

SAE is Shared Appreciation Equity. This is the sharing of the property’s net appreciation with the HHFDC in exchange for the buyer’s opportunity to purchase at below market prices. The SAE percentage is calculated prior to closing and once determined, does not change.

Owner occupancy is required during this period. The SAE Program does not have a time limit. It must be paid to the HHFDC. Owner’s obligation under this program will be released after HHFDC is paid its share of the net appreciation in the property.

The SAE must be paid when the property is sold, transferred or rented. Owners may pay it off at any time after recordation.

The HHFDC will require documentation to support the buyer’s application. Some examples are: current year tax returns, W-2, 2 months of paystubs, and a letter of pre-qualification from a Lender. Lenders will have different requirements to determine loan prequalifications.

The standard formula which is: Original Fair Market Value (determined by appraisal prior to closing), minus Original Purchase Price, divided by Original Fair Market Value, and rounded to the nearest one percent.

Yes, you may select from any available unit (as determined by Lender pre-qualification letter) to purchase.