HHFDC Annual Report to the Legislature (Demo)

Metric changes in January 20263

• LIHTC reservations awarded (units) · Financing Tools: State and Federal Programs. The state and federal financing programs HHFDC administers to facilitate affordable rental and for-sale housing. In 2025 HHFDC awarded LIHTC reservations to 8 projects totaling 1,234 units (Table 1) and awarded $357,006,367 in Hula Mae Multi-Family (HMMF) bond financing supporting 1,333 units. Financing awards are reported on a calendar-year schedule.1,640 units → 1,234 units

  “During 2025, HHFDC awarded LIHTC reservations to 8 affordable housing projects, supporting the new construction or rehabilitation of 1,234 units (see Table 1).”

• Affordable units in the 5-year production projection · Housing Information System. HRS §201H-6 requires HHFDC to maintain a housing advocacy and information system for housing consumers: the affordable-housing inventory registry, statewide planning studies, the YIMBY Working Group, and the housing production summary. In FY2025 HHFDC placed 1,460 units in service and projects a five-year pipeline of 10,875 units (FY2026–2030).10,175 units → 10,875 units

  “provided financing or development assistance for 10,875 units that are expected to come online in the coming years.”

• Units placed in service (fiscal year) · Housing Information System. HRS §201H-6 requires HHFDC to maintain a housing advocacy and information system for housing consumers: the affordable-housing inventory registry, statewide planning studies, the YIMBY Working Group, and the housing production summary. In FY2025 HHFDC placed 1,460 units in service and projects a five-year pipeline of 10,875 units (FY2026–2030).1,085 units → 1,460 units

  “HHFDC assisted in the delivery of 1,460 units that were placed in service”

• I. IntroductionOngoing
• II. About HHFDC2 of 2 lowest-level items tracked0%
  • Total assets under HHFDC administration2,400,000,000 USD

  • II.1Corporation Overview. Established by the Legislature in 2006, HHFDC has total assets in excess of $2.4 billion (as of June 30, 2025), an FY2025 operating budget of approximately $16 million, and 71 authorized full-time positions. It also holds 1,073 acres of developable land on Maui and Hawaiʻi Island and two operating properties with 210 affordable rental units.Ongoing
  • II.2Organizational Structure — Five Branches. Under the Office of the Executive Director, HHFDC is organized into five branches: Administrative Services; Planning, Evaluation and Compliance; Fiscal Management; Development; and Finance. Each branch feeds its part of this report.Ongoing
• III. Financing Tools: State and Federal Programs6 of 6 lowest-level items tracked0%
  • RHRF funds committed490,715,767 USD
  • LIHTC reservations awarded (units)1,234 units

  • III.1Low-Income Housing Tax Credit (LIHTC). HHFDC is the designated state housing credit agency and LIHTC is its principal financing mechanism. For 2025 the State was awarded $4,338,438 in new 9% credits and carried forward $650,418 in unused 2024 authority, for a total 2025 allocation of $4,988,856. During 2025 it awarded reservations to 8 projects totaling 1,234 units (Table 1).Ongoing
  • III.2Hula Mae Multi-Family Revenue Bonds (HMMF). Below-market tax-exempt private-activity-bond financing (HRS §201H-72) for the construction, rehabilitation, or acquisition of rental housing, pairable with 4% non-competitive LIHTC. Hawaiʻi’s 2025 volume cap is $388,780,000; in 2025 HHFDC awarded $357,006,367 in HMMF financing supporting 1,333 units. This program satisfies HRS §201H-95(g).Ongoing
  • III.3Rental Housing Revolving Fund (RHRF). Low-interest, deeply subordinate equity-gap financing (HRS §201H-202) for developing, preserving, or acquiring affordable rental housing, especially units for households below 30–50% AMI. HHFDC is implementing ProLink Solutions, a cloud-based platform for loan management and compliance reporting. This program satisfies HRS §201H-202(f).Ongoing
  • III.4Affordable Homeownership Revolving Fund (AHRF). Gap financing for affordable for-sale housing (Act 227, SLH 2021), satisfying HRS §201H-206. No new applications were received in FY2025, and Lima Ola (Kauaʻi) declined the loan awarded the prior fiscal year. Act 312, SLH 2025 was enacted to let CDFIs leverage additional capital.Ongoing
  • III.5Hale Kamaaina Single Family Mortgage Program. The first-time-homebuyer mortgage program (HRS §201H-91), formerly Hula Mae Single Family, re-branched and modernized in FY2025. New rules under HAR Chapter 15-314 took effect May 2025 and the program launched in Fall 2025, with an option to bundle a Down Payment Loan Assistance loan.In Progress
  • III.6Private Activity Bond Volume Cap Recycling Program. A new program (Act 35, SLH 2024) that lets HHFDC capture and reissue expiring PAB volume cap, estimated to recycle roughly $100 million in bond cap annually and support up to 500 additional affordable rental units per year. Act 253, SLH 2025 authorizes a supporting line of credit.In Progress
• IV. Development Tools6 of 7 items started
  • IV.1Dwelling Unit Revolving Fund (DURF). DURF (Act 105, SLH 1970; expanded by Act 132, SLH 2016) provides flexible capital and regional-infrastructure financing for affordable housing. FY2025 DURF loans included the Waikiki Community Center Mixed-Use Project ($5M interim), Nalu Waipouli in Kapaʻa ($13,722,902 permanent, a DHHL project), and Kai Olino in ʻEleʻele ($12M interim to reconstruct fire-destroyed Building A).Ongoing
  • IV.2201H Expedited Processing. HHFDC's Chapter 201H-38 expedited land-use processing. In FY2025 HHFDC approved exemption requests for six projects totaling 4,161 units (Table 9); it received 8 applications and approved 6 (Table 9a), up sharply from FY2024 (3 received / 2,754 units).Ongoing
  • IV.3DURF Equity Pilot (DEP) Program. A five-year program (Act 92, SLH 2023) in which HHFDC buys a share of equity in select for-sale units to lower buyers’ out-of-pocket cost, funded up to $10M in DURF. In FY2025 (year two) HHFDC approved additional investments in 88 units across four Oʻahu projects — Kuilei Place, Modea, The Flats at Sky Ala Moana, and The Park at Keeaumoku — totaling $3,328,881 (Modea and The Flats are no longer active).Ongoing
  • IV.4Kuilei Place (Moʻiliʻili, Oʻahu) — 1,005 units. A privately financed 1,005-unit for-sale development (603 units at 80–140% AMI); a 201H project realizing $3,038,674 in fee-exemption savings and participating in the DURF Equity Pilot. Construction began January 2025 with an April 2025 ground blessing; completion is anticipated in 2027.In Progress
  • IV.5VOK: Northwest Corner (fka Leiwili Kapolei) (Kapolei, Oʻahu) — 900 units. A 900-unit mixed-use for-sale and rental project on 26.5 acres HHFDC owns fee simple in the Villages of Kapolei, built in three phases with 201H-38 exemptions (~$1,688,788 in fee waivers). The developer applied for LIHTC and RHRF funding in February 2025 and the first building permit is anticipated in May 2026.In Progress
  • IV.6Kahului Civic Center Mixed-Use (Kaiahale o Kahilihilu) (Kahului, Maui) — 303 units. A 303-unit residential development (households under 60% AMI) within the Kahului Civic Center complex, under an MOU among HHFDC, DAGS, and Maui County (developer: an EAH Housing affiliate). A development agreement was executed January 2025 and 201H exemptions ($3,078,442 in savings) were approved June 2025; the developer anticipates applying to HHFDC for financing in the 2026 funding round.Not Yet Scheduled
  • IV.7General Excise Tax (GET) Exemption. HHFDC certifies GET exemptions on construction/rehabilitation costs and certified affordable rental income for eligible projects, improving financial feasibility. In FY2025 HHFDC processed 709 GET exemption requests representing 31,537 total units.Ongoing
• IX. Housing-Related Legislation6 of 6 items started
  • IX.1Act 159 — Transit-Oriented Development. Establishes a mixed-income sub-account within the RHRF for five years to finance projects, including those in transit-oriented development areas, for qualified residents defined in HRS §201H-32; requires the TOD Infrastructure Improvement District Board to consider transit-supportive density.Ongoing
  • IX.2Act 166 — Housing. Establishes a government-employee housing program to facilitate affordable residential/rental units for rent to government employees and the general public on state-owned land.Ongoing
  • IX.3Act 253 — State Finances. Authorizes HHFDC to secure revenue bonds as a line of credit or other instrument of indebtedness for the Bond Volume Cap Recycling Program, providing liquidity to retire old bonds while new bonds are issued (critical for IRC Section 145 compliance).Ongoing
  • IX.4Act 294 — Housing. Prohibits a county legislative body from imposing conditions stricter than HHFDC, stricter AMI requirements, or a reduction in fee waivers on housing development proposals that would increase project cost; projects under 201H-38 must remain primarily affordable.Ongoing
  • IX.5Act 250 — State Budget. HHFDC's operating expenditure ceilings (revolving funds) of $16,060,058 for FY2026 and $15,889,058 for FY2027, with 71 authorized positions (23 permanent + 48 temporary), plus CIP infusions including $50M/yr RHRF (FY2026 & FY2027) and $40M DURF (FY2027).Ongoing
  • IX.6SCR 60 SD1 HD1 — Plan to Meet Housing Demand. A resolution urging HHFDC to develop a plan to produce sufficient housing to meet the state's demand.In Progress
• V. Housing Information System8 of 8 lowest-level items tracked0%
  • Affordable units in the 5-year production projection10,875 units
  • Units placed in service (fiscal year)1,460 units

  • V.1Affordable Housing Inventory Registry. A centralized, public-facing registry of affordable rental housing statewide (HRS §201H-6), with an interactive web-mapping application that lets residents filter by location, household size, income, and needs.Ongoing
  • V.22024 Hawaiʻi Housing Planning Study (HHPS). The state's most comprehensive housing-market analysis, prepared every five years in partnership with a consortium of state and county housing agencies. The 2024 study is now published and available to read.Completed
  • V.3HUD Consolidated Planning & Fair Housing. The five-year Consolidated Plan (ConPlan), Annual Action Plan (AAP), and Consolidated Annual Performance and Evaluation Report (CAPER) HHFDC prepares for HUD, plus the 2025 Analysis of Impediments to Fair Housing (led by HHFDC with six state and county agencies, conducted by the University of Hawaiʻi).Ongoing
  • V.4YIMBY Working Group. The inter-agency working group HHFDC co-chairs with HPHA (Act 305, SLH 2022) to coordinate on housing and zoning barriers and propose legislation. In 2025 the group assessed the potential of local housing markets.Ongoing
  • V.5Projects Completed in FY2025. The 14 developments (Table 10) that delivered 1,460 new rental units placed in service in FY2025, including Hale Na Koa O Hanakahi (92), Jack Hall Waipahu (144), Kauhale I Ke Kula Uka (100), Maunakea Tower (379), and Kaiaulu O Kukuia (200).Ongoing
  • V.6Projects Under Development — Honolulu County. The Honolulu County development table (Table 14): 33 projects totaling 8,046 units, including 690 Pohukaina / Pohukaina Commons (625), Kakaʻako Block D (Waiakoa) (1,025 for-sale), Mayor Wright Homes Ph1 (555), and Kuilei Place (1,005).Ongoing
  • V.7Kakaʻako Block C (Kahuina) (Honolulu, Oʻahu) — 861 units. An 861-unit Honolulu development in HHFDC’s under-development pipeline (737 for-sale units plus 124 rental units), listed in the Table 14 County of Honolulu development report.Not Yet Scheduled
  • V.8Projects Under Development — Neighbor Islands. The neighbor-island development tables: Hawaiʻi County (7 projects / 663 units, Table 11), Kauaʻi County (11 projects / 772 units, Table 12), and Maui County (12 projects / 1,394 units, Table 13).Ongoing
• VI. Real Estate Portfolio5 of 5 items started
  • VI.1Villages of Kapolei — Legacy Infrastructure. A legacy state obligation (Act 15, SLH 1988): DURF-funded infrastructure maintenance exceeding $1 million a year, with roadway rehabilitation required for City dedication costing roughly $10 million a year. In FY2025 HHFDC performed road resurfacing, sidewalk and drainage repairs, and street-lighting upgrades, and advanced legal work to dedicate the sewer system.Ongoing
  • VI.2Waiāhole. HHFDC owns 122 lots (~596 acres) plus 292 acres of open space in Waiāhole Valley and spends ~$1.4 million a year administering 93 long-term ground leases. It has substantially concluded 25-year lease-rent renegotiations (46 of 78 lessees signed amendments) and owns the one-million-gallon potable water system, for which FY2025 advanced key life-extension repairs.Ongoing
  • VI.3Leasehold Homeownership Portfolio. More than 500 residential leases across 13 affordable housing projects (sold 1974–2005), plus the Buyback Program, Shared Appreciation Equity, and a new 99-year leasehold policy. In July 2025 HHFDC held community meetings for Uluwehi, Nahoa Apartments, and Hale Aupuni (leases expiring starting 2029) on the new 99-year lease option.Ongoing
  • VI.4Nani O Puna (Pāhoa). HHFDC's sole remaining legacy multi-family asset: 32-unit farm-laborer housing with a USDA-RD Section 514 loan (matures April 2027) and Section 521 rental assistance. Eight of nine legacy dispositions are complete; the Ahe Group formally withdrew from the Nani O Puna sale in June 2025, so HHFDC continues to manage the property with Hawaii Affordable Properties, Inc.Ongoing
  • VI.5Program Compliance Monitoring. Compliance monitoring across 173 affordable rental housing projects covering 16,436 units. In FY2025 monitoring included site reviews for 61 projects, plus 312 year-end and 141 quarterly reviews; HHFDC established a new Housing Compliance Specialist position as the portfolio has grown 169% since 2006.Ongoing
• VII. Support Services2 of 2 items started
  • VII.1Human Resources. HHFDC began FY2025 with a staff of 64, ending the year with 63; it made nine new hires (several internal promotions), added two hires through Operation Hire Hawaiʻi, and hosted five interns through the Hele Imua Internship Program with DLIR.Ongoing
  • VII.2Information Technology. In FY2025 the IT Office migrated all locally stored file servers to Microsoft SharePoint and cloud storage, upgraded Board Room AV, piloted Microsoft Teams Calling, and evaluated generative-AI platforms (Copilot, Gemini) with internal AI guidelines. The Finance Branch is preparing to implement ProLink Housing Software in late 2025.Ongoing
• VIII. Maui Wildfires Recovery1 of 5 items complete
  • VIII.1Hawaiʻi Interim Housing Program (HIHP). State-sponsored no-cost interim housing for wildfire survivors ineligible for FEMA housing, run by the Hawaiʻi Office of Recovery and Resiliency with DHS and HHFDC. HIHP stopped accepting new applications on January 15, 2025, and FEMA ended in-person staffing at its two recovery centers on June 18, 2025. The interim housing choices are Hale O Laie and Ka Laʻi Ola.Ongoing
  • VIII.2Hale O Laie (Kīhei, Maui). Interim housing at the former Maui Sun Hotel and Haggai International Institute (Act 164, SLH 2023): a 7.8-acre property with 175 furnished guest rooms on a 75-year ground lease with Maui County, operated by Paramount Hotels with phased opening from May 2024. Maui County is anticipated to take possession in September 2026.In Progress
  • VIII.3Ka Laʻi Ola (Villages of Leialii, Lahaina) — 450 units. A 450-unit temporary modular housing development on HHFDC's Villages of Leialii land, developed by DHS with HomeAid Hawaiʻi and the Hawaiʻi Community Foundation. It is Maui's largest interim housing community and reached substantial completion in under 18 months; in 2029 the site and infrastructure transfer to DHHL.In Progress
  • VIII.4Kilohana (Lahaina, Maui) — 167 units. A 167-unit temporary modular homes project on 34 acres, developed by the U.S. Army Corps of Engineers with FEMA. The first units were completed in November 2024 and the full complex was operational by February 2025; the modular homes are designed to last 30 years or more.Completed
  • VIII.5FEMA Housing Assistance. FEMA's direct leasing, direct temporary housing units, and rental assistance for disaster survivors. Nearly 1,200 households were enrolled two years after the wildfires; FEMA's direct temporary housing assistance was extended to February 10, 2026.Ongoing
• X. AppendixOngoing