Kuilei Place is participating in a new HHFDC Dwelling Unit Revolving Fund Equity Pilot Program (DEP) designed specifically for professions facing a labor shortage.

QUALIFIED PROFESSIONS

Health Care Workers • Educators • Law Enforcement Officers • Agricultural Field Workers

HHFDC purchases equity in your home that is already priced below market value. This amount is a loan which is charged 1% interest and shares a percentage of net appreciation with the HHFDC.

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Take these steps to see if you are eligible for our DEP housing program.

  1. Please follow the steps here and see if you are eligible for the HHFDC program
  2. For HHFDC applicants that are health care workers, educators, law enforcement officers, or agricultural field workers, check to see if you qualify here.
  3. If you are eligible for both the HHFDC program and the DEP program - Download and print the DEP affidavit here. All contracted buyers must also sign and acknowledge the affidavit.
  4. Get your affidavit notarized. Notary Location Options
  5. Upload your affidavit to your personalized client portal.
  6. Be on the lookout for your DEP approval.
  7. Contact your Sales Associate and provide your original notarized affidavit to pick your unit in the Sales Gallery.
  8. Sign a contract to your new home.

DEP Residence Floor Plan

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Frequently Asked Questions  

What is DURF Equity Pilot (“DEP”) Program?

Act 92, Session Laws of Hawaii 2023, authorized HHFDC to establish a Dwelling Unit Revolving Fund equity pilot program. HHFDC works with the developer to identify starter homes that will be eligible for the program. HHFDC will purchase equity – contribute funds to buydown the sales price with 30-year repayment option – in specified units for qualified purchasers.

What are the criteria to be eligible for a DEP program unit?
  • Be approved by HHFDC for a Kuilei Place affordable unit
  • Own no other real property
  • Receive no gift funds
  • At least one of the HHFDC applicants must work in a profession that is facing a shortage as defined and determined by the corporation, including nurses, teachers, police officers, and agricultural field workers.
What is the benefit of the DEP program?

The DEP program is a deferred loan program. The developers purchase price is effectively lowered by the HHFDC purchased equity amount of $103,300. The subsidized amount is a loan that shares a percentage of net appreciation with the HHFDC. See SAMPLE COMPUTATION below.

When is the DEP loan and HHFDC shared equity amount due?
  • At the time the homeowner sells, rents, refinances, or transfers the property
  • If the homeowner does not occupy the property
  • Prior to 30 years
When would I apply for the program?

Applications are accepted on a first come first served basis.

How do you apply for the DEP program?

Sign and notarize the required affidavit. The original affidavit must be submitted at the time of signing a purchase contract. To download the affidavit, CLICK HERE.

Is the buyer required to maintain the DEP program eligibility requirements through closing?

Yes. If buyer loses their job as a teacher for example, they can still purchase the home, but it would be at the Developer’s Sales Price and would no longer be able to benefit from the DEP program.

I am an existing HHFDC Kuilei Place buyer under binding contract, can I apply for the DEP program?

Yes – you can apply for the DEP program. You need to sign, notarize, and submit the required affidavit for approval. If approved, you would then sign an amendment to your existing contract.

I have been HHHDC approved but have not contracted a unit, can I apply?

Yes – you can apply for the DEP program. You need to sign, notarize, and submit the required affidavit for approval.

If I already have a pre-approval for $626,700, does it need to be modified for the DEP program?

Yes. There will be a pre-qualification template for the DEP program. It must be submitted with the affidavit.

What is the price and the deposit schedule used on the contract?

Example for Unit 252

Developer’s Sales Price: $626,700
HHFDC Equity: $103,300
Buyer’s New Purchase Price: $523,400
Down Payment – 5%: $31,335
Loan Amount: $492,065
How is the HHFDC equity percent determined?
1. Corporation’s Equity $103,300
2. DIVIDED by – the Original Cost of the Unit $626,700
3. EQUALS – HHFDC’s Equity percent share: 16%
What is the amount of equity share paid to HHFDC?

HHFDC will determine the share of net appreciation amount on the HHFDC equity buyer will be expected to pay when they sell, rent, refinance, transfer or no longer become an owner occupant of the unit.  See SAMPLE COMPUTATION below.

SAMPLE COMPUTATION of HHFDC equity and equity share. Based on the buyer’s refinance in year 3 of ownership using the following hypothetical amounts including future property value:

a. Developer Original Sales Price: $626,700
b. HHFDC’s Equity Amount: $103,300
c. Qualified Purchaser Price: $523,400
e. HHFDC Equity Percent (see #12 above): 16%

Computation of equity paid to HHFDC

1. Property value by appraisal at time of refinance in 3rd year of ownership … $750,000
2. MINUS the Original Value … ($626,700)
3. EQUALS the Net Appreciated Value … $123,300
4. MULTIPLIED BY HHFDC Equity Percent … 16%
5. EQUALS Equity Share paid to HHFDC: … $19,728
How is SAE calculated?

SAE Computation using information above:
A. Developer’s Original Sales Price: $626,700
B. Value of the Unit prior to close of Sales: $700,000

Value of Unit: 700,000
Minus Purchase Price: 626,700
Equals: 73,300
Divided by: 700,000
Equals: 0.1047 = 10% HHFDC SAE percent share

SAE Payment at sale, transfer or rent of the property (3 years):
Future Value: 750,000
Minus Buyer’s Price: 626,700
Equals: 123,300
Multiply by 10%: 12,330 – HHFDC SAE payment

Buyer’s total payment to HHFDC – $32,058