Hawaiʻi Housing Finance & Development Corporation

1. I am a housing developer. Where do I start?

If you are new to working with HHFDC, the best place to start is by visiting our official website. Familiarize yourself with our mission and review the Annual Action Plan, (under Consolidated Plans & Action Submittals) which outlines the state’s current housing priorities. If you have a specific project in mind, you may request an initial consultation with our staff to discuss the feasibility of your project and which financing programs might align with your goals.

2. How does HHFDC assist developers in creating affordable housing?

HHFDC acts as a catalyst for housing production by providing essential financial tools and regulatory support. We help bridge the gap between high development costs and the need for affordable rents or sales prices by offering low-interest loans, federal and state tax credits, revenue bonds, and access to state-owned land. Our goal is to make it financially viable for partners to deliver housing that remains affordable for local families.

3. What are the primary financing programs available to developers?

We offer several core programs to support project feasibility:

• Rental Housing Revolving Fund (RHRF): Provides low-interest loans to bridge the gap in financing for the development or renovation of affordable rental projects.
• Low-Income Housing Tax Credit (LIHTC) Program: Administers federal and state tax credits to attract private equity investment for affordable rental housing development.
• Hula Mae Multi-Family Revenue Bonds: Allows for the issuance of tax-exempt revenue bonds to finance the construction or rehabilitation of affordable rental housing.
• Dwelling Unit Revolving Fund (DURF): Supports the development of infrastructure and the construction of affordable housing through loans and investments.

4. What does the typical development pathway look like?

The development process is collaborative and structured into three primary phases:

• Phase 1: Concept & Feasibility – Developers focus on site selection and pro-forma development, while HHFDC provides inventory data and guidance on agency goals. County planning departments verify zoning and infrastructure capacity.
• Phase 2: Financing & Application – Developers submit Letters of Intent (LOI) and formal applications. HHFDC manages technical evaluation and board presentations, while private investors and lenders conduct financial due diligence.
• Phase 3: Delivery & Execution – Developers finalize design and construction. HHFDC provides regulatory relief (201H) and monitors compliance benchmarks, supported by municipal inspectors and contractors.

5. Who is responsible for what during a project?

Project success relies on clear role definitions:

• The Developer: Leads project acquisition, architectural design, permit acquisition, and site construction.
• HHFDC: Serves as the primary funding and regulatory partner, facilitating 201H exemptions, evaluating applications, and ensuring long-term affordability compliance.
• Other Stakeholders: Includes equity investors and private lenders for financing; municipal agencies and contractors for safety and technical execution; and community boards for project feedback.

6. Understanding the QAP and Funding Cycles

The Qualified Allocation Plan (QAP) serves as your essential rulebook. It sets forth the criteria HHFDC uses to evaluate and allocate LIHTC and other resources to projects that best meet state housing needs.

• Funding Rounds: HHFDC typically conducts annual funding rounds. Because competition is often fierce, success frequently depends on mastering the specific scoring criteria and priorities outlined in the current year’s QAP.
• Stay Informed: Application availability and deadlines vary by cycle and are subject to change. We encourage developers to monitor the HHFDC website regularly to understand current state priorities before submitting a pre-development inquiry.

7. Modernizing Our Process: The Move to ProLink and Procorem

HHFDC has modernized its application and compliance management systems after the Letter of Intent (LOI) by transitioning to ProLinkHFA and its collaborative portal, Procorem. Once your LOI and application fee has been submitted and processed, access to the Procorem WorkCenter will be available for the development team.

• What the software means to you: ProLinkHFA is cloud-based software designed to simplify the management of affordable housing programs. It integrates with Procorem, which is now our primary external-facing portal.
• Efficiency: Procorem serves as a centralized, secure hub where developers can submit their application packages, upload required documentation, and collaborate on tasks electronically, eliminating the need for manual, paper-based processes.
• Action Required: Ensure your team is configured to access the Procorem WorkCenter, which is organized by individual housing developments, to facilitate document sharing and application submittals.

8. What is the process for submitting a proposal to HHFDC?

The submission process differs depending on whether you are seeking project financing or regulatory exemptions.

• For Project Financing (Consolidated Application): HHFDC utilizes an annual competitive cycle for financing programs like LIHTC, RHRF, and Hula Mae Bonds. To apply, you must first submit a mandatory Letter of Intent (LOI) and pay applicable fees by the stated deadline. Upon acceptance of your LOI, you will be invited to the Procorem portal to submit a complete Consolidated Application, which includes detailed project designs, financial projections, and development timelines.
• For 201H Regulatory Exemptions: If your project requires Chapter 201H exemptions from county zoning or planning standards, this is a separate administrative process. You must work closely with HHFDC staff to prepare an exemption request package. This process requires you to hold at least one public meeting for community input before presenting your project and requested exemptions to the HHFDC Board of Directors for formal approval. Once the Board approves, the package is then transmitted to the appropriate County Council (or the State Land Use Commission) for their 45-day review.

9. What is the 201H process, and how does it expedite development?

Chapter 201H, HRS, is a powerful tool that authorizes HHFDC to develop or assist in the development of affordable housing projects by granting exemptions from certain statutes, ordinances, charter provisions, and rules relating to planning, zoning, and construction standards.

The Benefit: This process allows for greater design flexibility and significant cost savings, such as reduced parking requirements, waived park dedication fees, and the ability to build residential housing on non-residential land.

The Two-Step Process:

1. HHFDC Board Approval: The developer must consult with HHFDC staff, conduct a public meeting for community input, and present the project and requested exemptions to the HHFDC Board of Directors for formal approval.
2. County Council/LUC Submission: Upon HHFDC Board approval, the exemption request package is submitted to the appropriate County Council (or the State Land Use Commission). The legislative body has 45 days to act by resolution. If they do not disapprove the project by the 46th day, it is automatically deemed approved.

10. Presenting to the Board of Directors

Project approvals often culminate in a presentation to the HHFDC Board of Directors. These meetings are the primary forum for transparent oversight and formal project authorization.

• “For Action” Items: When staff recommends a project for approval, it is presented as a “For Action” item on the board agenda.
• Meeting Procedures: The Board meets monthly, typically on the second Thursday. Meetings are open to the public and provide an opportunity for both staff presentations and public testimony.
• Preparation: Applicants should work closely with HHFDC staff to prepare the necessary materials for their “For Action” presentation. Because board packets are distributed to members at least 48 hours in advance, ensuring all documentation is timely and accurate is critical for a smooth board review.

11. Does HHFDC offer any support for land acquisition or infrastructure development?

Yes. Through programs like the Dwelling Unit Revolving Fund (DURF), HHFDC can assist with site acquisition, planning, and off-site infrastructure upgrades. In certain cases, HHFDC may enter into development agreements for state-owned lands, where we work with master developers to bring affordable housing to the site while ensuring the project is supported by necessary road, water, and sewer infrastructure.

12. Are there specific requirements for the “reserved” or “affordable” units?

Yes. Projects receiving HHFDC support are subject to regulatory agreements that mandate long-term affordability. These agreements dictate maximum rent levels or sales prices based on AMI guidelines and require compliance reporting for the duration of the affordability period, which can range from 30 to over 60 years. We maintain strict oversight to ensure these units continue to serve their intended beneficiaries.

13. How does HHFDC help navigate the regulatory and permitting landscape?

While HHFDC cannot waive county permitting requirements, we act as a strategic partner to help projects move through the government system more efficiently. We often work alongside county departments to facilitate interagency cooperation, and our projects may be eligible for fast-track processing or density bonuses provided under state law for affordable housing. We also participate in the SPEED Task Force, which works to resolve systemic delays encountered by housing developers.

14. What is the expectation for project readiness and community engagement?

We prioritize projects that demonstrate a clear path to completion. This includes having site control, preliminary design plans, and a realistic construction timeline. Equally important is community engagement; we expect our development partners to maintain transparent communication with the local community, stakeholders, and neighborhood boards. Strong community support and a project design that integrates well with its surroundings significantly strengthen a proposal’s chance of success.