Four affordable properties available through county’s Homebuyer Loan Program

Other affordable housing projects move forward

LĪHU’E – May 7, 2013 – (RealEstateRama) — County officials announced today that four affordable properties are now available for sale to income-qualified, first-time homebuyers through the Homebuyer Loan Program. To be eligible, applicants must be on the county’s Affordable Housing Wait List.

The wait list was established by the county six years ago to provide a mechanism for homebuyer ready residents to have the first opportunity to buy affordable and workforce housing units that are built by the county or by private developers as a requirement for their projects. Currently, there are 355 participants in the program.

Three other affordable housing projects are also moving forward: Rice Camp in Līhu’e with a total of 60 units for elderly residents; Kolopu, 44 units of employee housing in Princeville; and Lima ‘Ola, a master planned community of 400 units in ‘Ele’ele.

“Providing more affordable housing for our low to moderate income families is one of our priorities, and we are very pleased that four Kaua’i families will soon be able to realize their dreams of owning a home,” said Mayor Bernard Carvalho, Jr. “Over the next year, we plan to break ground on Rice Camp and Kolopu, and in 2015, begin construction on phase one of Lima Ola.”

Four affordable properties available through the county’s Homebuyer Loan Program

Three of the properties currently available through the Homebuyer Loan Program are single family residences. Two are located in Līhu’e and one in Hanapēpē. The other is a Līhu’e condominium.

These homes were acquired by the county with funding from the Neighborhood Stabilization Program and the U.S. Department of Housing and Urban Development, Community Development Block Program.

Since the Homebuyer Loan Program was established in 1997 by the county, 227 mortgage loans have been issued through this low-cost program.

Highlights of the HL Program include:

 First time homebuyers whose annual gross household income does not exceed 80 percent of the Kaua’i Median Household Income (KMHI) are eligible for primary or gap mortgages in the program. For 2013, 80 percent of the KMHI for a household of four is $69,150.
 The maximum loan amount for a primary mortgage is $450,000, while the ceiling for a gap mortgage is $150,000.
 Up to 100 percent of the purchase price may be financed, and no private mortgage insurance is required.
 Interest rates are based on the borrowers’ household income. Currently, the highest rate is three percent, which is below the market rate for a 30-year mortgage.
 For a primary mortgage, the interest rate is fixed and amortized for 30 years with a 15-year balloon payment.
 For a gap mortgage, the interest rate is fixed and amortized for a period of 30 years with only interest payments required for the first seven years of the loan.
 Closing costs are minimal.
 Certain restrictions may apply.

Housing Director Kamuela Cobb-Adams encourages everyone interested in buying or renting a home to sign up for homebuyer education classes.

Four affordable properties available through the county’s Homebuyer Loan Program

“This will give them an introduction to homeownership, assess their readiness to buy a home, and provide them with an understanding of the home-buying process,” said Cobb-Adams. “Additionally, upon completion of the classes, they will be placed on our Affordable Housing Wait List.”
Currently, there are two nonprofit agencies that offer homebuyer education and counseling services on Kaua’i – Hawaiian Community Assets and Hawai’i Home Ownership Center.

Two workshops facilitated by Hawaiian Community Assets are scheduled next week, May 14 and May 16, 5 to 9 p.m., at the Līhu’e Civic Center, Pi‘ikoi Building.

To register for the workshops, please call HCA at 632-2070.

The Hawai’i Home Ownership Center offers online training titled “Homebuyer Education and Coaching”, which participants can take at their convenience.

To sign up for the HHOC program, please call 1-877-523-9503.

If you need an ASL Interpreter, materials in an alternate format, or other auxiliary aid support, please contact the respective agency at least seven days before the event.

For more information about the county’s affordable housing projects, please call the Housing Agency at 241-4444.

Contact:
KAMUELA COBB-ADAMS, DIRECTOR
Tel (808) 241-4444
Fax (808) 241-5118