Sales Process

To ensure fairness and in accordance with Hawaii Housing Finance and Development Corporation (HHFDC) oversight, the sales process is tightly controlled. If you have any questions, please see our FAQ page or contact Sales Center staff, available daily from 10am to 5pm at (808) 941-2330.

  • November 5, 2018
    Newspaper Announcement
  • Starting Nov. 10, 2018
    Pick-Up an Application
  • November 10, 11 & 18, 2018
    Attend an Educational Seminar
  • Meet with a Lender & Sales Team Agent
  • Deadline: January, 14, 2019 by 5:00pm
    Submit Application & Pre-Qualification Letter
  • February 16, 2019
    Public Drawing
  • Property Selection Number (PSN)
  • March 10, 11 & 12 2019
    Unit Selection
  • March 13, 14, 15 & 16 2019
    Contract Signing (Initial Deposit is Due)

Frequently Asked Questions

  • What is HHFDC?
    • 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/

  • What are the benefits of HHFDC Sponsored Affordable Housing (HHFDC Affordable Housing)?
      1. Allows eligible and qualified applicants to purchase at below market prices, likely creating built-in equity.
      2. Homebuyers have an opportunity to live in town at a brand new development that fits their budget.
      3. Gifting and co-signing provide an opportunity for homeownership.
      4. Household limitations subject to the City and County of Honolulu ordinances.
  • What are the buyer’s procedures?
      1. Attend an educational seminar and receive an Application Packet.
      2. Fill out the Application Packet and meet with a Lender for mortgage loan pre-qualification.
      3. Return the completed packet to the Sales Center by 5:00pm on January 14, 2019.
      4. HHFDC First Review — Review of applications to determine eligibility.
      5. Public Drawing.
      6. HHFDC Second Review — Assignment of Property Selection Number (PSN).
      7. Unit Selection & Contract Signing.
  • What are the documentation requirements?
    • The HHFDC will require documentation to support the buyer’s application. Some examples are: current year tax returns, W-2, 2 months of pay stubs, and a letter of pre-qualification from one of the preferred project Lenders. Lenders will have different requirements to determine loan pre-qualification.

  • What are income limits for HHFDC Affordable Housing?
    • HHFDC Affordable Housing is for buyers earning 140% and below of the HHFDC established Area Median Income.

  • How do I know if I am eligible for Affordable Housing?
    • The HHFDC will determine eligibility based on the required information you provide in your Application Packet, including the following:

      1. US Citizen or permanent resident alien (with valid government issued card).
      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 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. Has a need for housing in accordance with state law.  Refer to the Project Information packet for additional information.
  • What is the deposit schedule?
    • The buyer will need to provide $500 at contract signing and the remainder of 5% minus the $500 after 30 days.

  • What is the HHFDC Buyback Restriction Program?
    • The Buyback Program is 1 of 2 HHFDC required programs imposed on all new HHFDC sponsored for sale development.  Among other things, the program requires that the owner occupy the unit purchased as its primary residence (owner occupancy) for 10 years or the duration of the program. The buyback program gives the HHFDC the first option to purchase the property in the unlikely event that owner can no longer be an owner occupant or wishes to sell or transfer the unit during the first 10 years of ownership. The restriction automatically terminates at the end of 10 years from the recording date.  Refer to the project Information Packet for additional details.

  • What is the SAE Program restriction?
    • “SAE” is Shared Appreciation Equity. The SAE Program is 1 of 2 HHFDC required programs imposed on all new HHFDC sponsored for sale developments. It is the sharing of the property’s net appreciation with the HHFDC in exchange for the buyer’s opportunity to purchase the unit at below market prices. The SAE percentage is calculated prior to closing and once determined, does not change. The program requires owner occupancy for as long as the SAE obligation is owed to the state and has not been released by the HHFDC.

  • When is the SAE due and payable?
    • The SAE must be paid when the property is sold, transferred or rented. Owners may pay off the SAE at any time after becoming the owner of record.

  • How is HHFDC’s percentage share calculated?
    • The formula is: Original Fair Market Value (determined by HHFDC’s appraisal prior to closing), minus Original Purchase Price, divided by Original Fair Market Value, and rounded to the nearest one percent.

  • If I am a single person, can I purchase a two-bedroom unit?
    • Applicants may select a unit based on their PSN, lender determined sales price listed on applicant’s pre-qualification letter and HHFDC approved income category.  Further details of the unit selection process will be provided by the developer at a later date in the purchase process.

Project Lenders