Hula Mae Multi-family Program

The purpose of the Hula Mae Multi-family (HMMF) Tax-exempt Bond program is to promote the development of new or the rehabilitation of existing rental housing projects through the issuance of mortgage revenue bonds for interim and/or permanent financing at rates below market interest rates. The HHFDC serves as the issuer of the bonds.

We strongly encourage you to consult with your tax counsel and/or certified public accountant regarding this program prior to submitting an application.

Issuance of bonds through the HMMF program is subject to the allocation of Private Activity volume cap by the State’s Director of Finance and the approval of the Governor of the State of Hawaii.

Qualified Owners:

Non-profit or for-profit entities determined to be qualified by experience and financial responsibility to construct or rehabilitate a housing project of the type and magnitude described, and who agrees to enter into a Regulatory Agreement with the Corporation providing for the regulation of the rents, project operations and disposition of the assets of the project.

Eligible Projects/Tenants:

1. Projects must set aside either:

20 percent of the units for tenants earning less than 50 percent of the area median income as determined by the U.S. Department of Housing and Urban Development;

or

40 percent of the units for tenants earning less than 60 percent of the area median income as determined by the U.S. Department of Housing and Urban Development.

2. Minimum compliance term for income restrictions is 15 yrs. or the term of the bond.

Financing Structure:

Bonds may be used for either interim or permanent financing. The Corporation will act as a conduit to issue the tax-exempt bonds, and the owner must submit for the Corporation’s approval the financing team for the project (i.e., trustee, letter of credit lender, underwriter, bond counsel).

How to Apply:

Submit a completed Consolidated Application to the Corporation. Please contact the Corporation to receive a copy of the Consolidated Application. Consolidated Applications for the Hula Mae Multi-family program are accepted throughout the year.

Additional Resources