September 27, 2016

HCDA Reserved Housing

HCDA Reserved Housing Overview:

As the state agency in charge of overseeing all development in the Kaka’ako Area, HCDA issued the development permit for the Block 803 Waimanu and requires that a certain number of units are set aside as Reserved Housing under the Kaka’ako Reserved Housing Rules (Title 15, Subtitle 4, Chapter 218 of the Hawaii Administrative Rules) and Mauka Area Rules (Title 15, Subtitle 4, Chapter 217 of the Hawaii Administrative Rules).

Reserved Housing is a program designed by HCDA to help ensure an increased supply of housing is made available to Hawaii residents with incomes below 140% of the Honolulu area median income (“AMI”) (we need it!). Reserved Housing units are required to be priced as affordable to households below 140% of AMI and are often sold below market rate. 66 units will be offered under the Reserved Housing Program with prices starting in the low $300,000’s. All Reserved Housing units have a designated parking stall. For specifics on unit plans and pricing please see our Pricing Page.  Pricing and availability of the remainder units will be released soon!

How to Apply:

  1. Pick up an application packet from the project sales office. Applications will be available starting on January 7, 2017 at 10:00 AM.
  2. Review application packet. If you believe you qualify, fill out the application, and bring to an Approved Project Lender – Honolulu Home Loans or American Savings Bank.
  3. Upon approval for the program, lender will issue a prequalification letter with your maximum purchase price.
  4. The prequalification letter, along with original signed and notarized Affidavit of Intent and Affidavit of Eligibility, constitute a COMPLETE APPLICATION. Complete applications must be hand delivered to the project sales office. The soonest complete applications will be accepted is Saturday, January 28, 2017 at 10:00 AM, and applications will be processed in the order received.
  5. A unit selection event will be held on February 25, 2017, at which time qualified applicants may select a unit and enter into a sales contract, in the order in which their completed applications were submitted.

Qualification Criteria:

  • Maximum household income of 140% of the Honolulu area median income (“AMI”);
  • Maximum household assets not to exceed 135% of the applicable income limit;
  • Must be at least 18 years old;
  • Must not have owned a principal residence within the last 3 years;
  • Must be an owner-occupant for 5-year regulated period (Exceptions Apply);
  • Must not have a record of conduct which may prove detrimental to other residents or HCDA

HCDA First Option to Purchase

During the 5 year regulated term, if the owner wishes to sell the unit, HCDA has the first option to purchase. See Section 15-218- 36 and 15-218- 37 of the Kaka’ako Reserved Housing Rules for details.

HCDA Equity Sharing Program

If the initial sale of the unit is below appraised value, a share of any net appreciation when the unit is sold is due to HCDA, whether the sale is within the 5 year regulated term or beyond. See Section 15-218- 41 and 15-218- 42 of the Kaka’ako Reserved Housing Rules for details.

IMPORTANT:

AT THE INITIAL ASKING PRICES, ONLY 10 OF THE 66 RESERVED HOUSING UNITS ARE ANTICIPATED TO HAVE SHARED EQUITY APPRECIATION.

Document Links:

Presale Announcement

Kaka’ako Reserved Housing Rules

Mauka Area Rules

Summary of Reserved Housing Requirements Under the Mauka Area Rules

Reserved Housing FAQ’s

Honolulu Home Loans Contact Info Sheet

American Savings Bank Contact Info Sheet

Title Guarantee Notary Service Locations