Learn About HHFDC

About HHFDC

The Hawaiʻi Housing Finance & Development Corporation (HHFDC) is the primary state agency responsible for the financing, development, and preservation of affordable and workforce housing. It operates under the Department of Business, Economic Development & Tourism (DBEDT).

>> Also see WHAT IS “AFFORDABLE HOUSING” ANYWAY?

Initiatives

The HHFDC’s mission is to increase and preserve the supply of affordable and workforce housing across the state.

Hawaiʻi faces a significant housing deficit. Recent studies estimate a need for over 64,000 additional units by 2027. The agency focuses on a “supply-side” strategy to build and finance new inventory.

History and Evolution

The HHFDC as it exists today was established by the Hawaiʻi State Legislature effective July 1, 2006. Its creation resulted from a strategic decision to separate housing finance and development from the management of public housing.

  • Pre-2006 Context: Functions were previously managed by the Housing and Community Development Corporation of Hawaiʻi (HCDCH).
  • Legislative Shift: Through Act 196 (2005) and Act 180 (2006), the Legislature created the HHFDC to focus exclusively on finance/development.
  • Long-term Roots: Lineage traces back to the Hawaiʻi Housing Authority (HHA), established in 1935.

What Does HHFDC Do?

  • Financing Affordable Housing: Acts as the primary state source for “gap financing” for developers, using tools like the Rental Housing Revolving Fund (RHRF), Low-Income Housing Tax Credits (LIHTC), and Hula Mae Multi-Family bonds.
  • Development Facilitation: Uses Chapter 201H authority to expedite projects by providing exemptions from certain county zoning, land-use, and building ordinances.
  • Homeownership Programs: Manages the Mortgage Credit Certificate (MCC), Buyback, and Shared Appreciation Equity (SAE) programs.
  • Compliance & Monitoring: Ensures developments receiving state subsidies remain affordable and compliant for 30–60 years.
  • Land & Asset Management:
    • Villages of Kapolei: Manages infrastructure and oversees new development phases.
    • Waiahole Valley: Manages 750 acres, including a state-owned water system and oversight of residential/agricultural ground leases.

AGENCY TIMELINE

2006

On July 1, 2006, the Hawaii Public Housing Authority (HPHA) and HHFDC began operating as separate agencies.

2005

Governor Linda Lingle enacted Act 196 which split the HCDCH into two agencies, creating the HHFDC to focus on low- and moderate-income housing development.

1998

On July 1, 1998, The Housing and Community Development Corporation of Hawaii (HCDCH) began operating as a single agency.

1935

The Hawaii Housing Authority (HHA) was created by the Territorial Legislature to provide safe, sanitary housing for low-income residents.