SAE & BUYBACK PROGRAM

HHFDC Services for Residents

Quick Overview: HHFDC’s Lower Cost Affordable Housing Program

To purchase an HHFDC-sponsored affordable home, applicants must qualify as a “first-time homebuyer” or “qualified resident” and meet all income and eligibility requirements specific to the project.

Requirements to Purchase

Note: Eligibility and income requirements vary by project. Please contact the project’s designated sales team for detailed information. You can find that info on that project’s website.

Definition of a Qualified Resident:

  • U.S. citizen or resident alien.
  • At least 18 years of age.
  • Domiciled in Hawaii and will physically reside in the unit.
  • Has gross income sufficient to qualify for a loan (via lender prequalification letter)].
  • Does not own a majority interest in real estate suitable for dwelling.

A first-time homebuyer is a qualified resident who has not owned any unit anywhere for one year prior to the application date.

Process to Purchase

  1. Step One: Obtain a prequalification letter from a preferred project lender.
  2. Step Two: Complete and submit your signed application with required supporting documentation to the project sales team for review and HHFDC determination.
  3. Step Three: If approved, contact the sales team to select a unit and sign a purchase agreement.

Buyback Program

The Buyback is a deed restriction requiring the unit to remain affordable for 10 years. HHFDC has the first option to repurchase if the owner cannot occupy the unit during this period. It automatically expires 10 years after the deed is recorded.

SAE Program

Requires the owner to share a fixed percentage of net appreciation with HHFDC. This does not expire and must be paid upon sale, transfer, or rental. Failure to pay when due incurs 12% interest.

Highlights of Both Programs

  • Effective from the date the buyer’s deed is recorded at the Bureau of Conveyance.
  • Owner occupancy is required by all persons on title (including spouse) while the program is in effect.
  • HHFDC prior written consent is required for situations like mortgage refinancing or title transfers.
  • Refinance/additional financing is limited based on the program.
  • Full program disclosure is included in the purchase agreement.