Refinancing a Reserved Housing Unit


If you own an HCDA Reserved Housing Unit and wish to refinance your loan please complete the highlighted sections of the letter linked below and return to us, along with the documents mentioned at the bottom of the letter.  This letter will serve as your formal request for subordination of HCDA’s shared equity interest.

Under HCDA’s rules, the HCDA will only approve requests to refinance the owner’s primary mortgage up to the original loan amount, provided it does not exceed 80 percent of the original purchase price.  In addition, the HCDA must maintain its second lien position at all times.

The HCDA will deny all requests that would subordinate its shared equity interest to a second mortgage (i.e., Home Equity Line of Credit) or would further demote the HCDA’s second lien position on the property.

HCDA’s consent to subordinate is required prior to refinancing an existing loan, regardless of whether the regulated term has expired or not. HCDA’s consent is not needed if the lender is willing to subordinate to the HCDA, thereby elevating the HCDA to the first lien position.

Return the letter to: HCDA, 547 Queen Street, Honolulu, HI, 96813

Or by email to:

If you have any questions, call HCDA at (808) 594-0300

Request for Subordination Template Letter

Subordination Document Template