The Rental Housing Revolving Fund awarded low-interest loans to housing developers with projects targeted at renters earning less than 30% of the state’s average median income of $140,000 for a family of four. Forty projects encompassing nearly 5,000 affordable rental units received funding. Gov. Josh Green has proposed adding $250 million more to the fund over the next two years.
“That is the only program we have that significantly delivers housing for people at the low- and very low- income spectrum,” said Arjuna Heim, director of housing policy at Hawai’i Appleseed, a nonprofit research and advocacy organization. “Without having those funds earmarked specifically for that, I’m not sure how else we would be able to house a significant portion of our community.”
The legislature also has directed appropriations for workforce housing projects aimed at renters who make between 60% and 100% of the state’s median income. The workforce housing appropriation subsidized four projects that combined will provide 756 units that must remain affordable for more than 50 years.
Developers of low-income and workforce housing still face significant obstacles, including permitting delays, the economy and supply chain issues that are especially pronounced for a state that imports most of its building materials. Some of the housing projects funded in 2022 remain in the design and permitting stage and have yet to reach construction.
One of those projects is Hualalai Court on the Big Island, according to the article.The project was previously intended as low-income senior housing relying on federal tax credits funding. When that didn’t materialize, state funding of $67 million revived the project, but it has been further delayed by rising interest rates and construction costs.
Local organizations focused on the affordability challenge in Hawaii propose solutions ranging from reining in overregulation and creating more land zoned for urban development to financing construction of homes for sale, which would result in these loans paid back sooner.