Hawai‘i County accepting proposals to address affordable housing for the middle class

The County of Hawaiʻi has launched its request for proposals for this fiscal year’s Affordable Housing Production Program.

Starting May 1, the Office of Housing and Community Development invites qualified public agencies, nonprofit and for-profit organizations, and community land trusts to submit proposals aimed at creating sustainable, inclusive, and affordable housing solutions for all residents.

At least $9 million is anticipated for the 2024-25 funding round, though the final allocation to the program will not be determined until the completion of the County’s Fiscal Year 2024-25 budget in May. The fiscal year commences on July 1, 2024.

“The release of this RFP underscores the County of Hawaiʻi’s dedication to addressing the affordable housing crisis and creating opportunities for residents to secure safe, decent, and affordable housing. We believe that by investing in affordable housing production, we can create positive and lasting change within our community,” says Housing Administrator Susan Kunz.

While projects proposing housing solutions for all residents across all income levels are eligible for funding, the focus of the 2024-25 funding round will be on projects targeting households earning between 81% and 140% of the Area Median Income (AMI).

Commonly referred to as the “Gap Group,” this group represents individuals and households whose annual earnings are too high to qualify for existing government housing assistance programs but not high enough to afford market-rate housing. For reference, a household of four with an annual income of about $100,000 would be earning 100% of AMI.

According to the 2019 Hawaiʻi Housing Planning Study, Hawaiʻi Island needed an additional 10,796 affordable housing units by 2025 to meet demand among households earning up to 140% of AMI. About a third of those units are needed for households in the “Gap Group.”

“We’ve heard loud and clear from the community through town halls, meetings, studies and surveys that affordably priced housing for our workers is also needed to ensure we have vibrant and inclusive communities where individuals can flourish for generations to come,” says Kunz.

Proposals must be submitted electronically only through an online application platform that will be available on the OHCD website, www.hawaiicounty.gov/ahp, starting May 1. Proposals are due by 4:30 p.m. July 1.

Other priorities for the 2024-25 funding round are homeownership initiatives such as for-sale housing, down payment assistance, and rent-to-own models, and projects that promote new construction or an adaptive reuse of an existing building for housing.

Eligible nonprofit and for-profit organizations, public agencies and community land trusts considering proposal submissions and interested community members are encouraged to take part in one of two virtual information sessions via Zoom. These meetings will provide further insight into the program and submission process.

To register for the first session at 9:00 a.m. May 9, 2024, visit https://tinyurl.com/mry8hnem. The second session will be held at 1:00 p.m. May 17, 2024, visit https://tinyurl.com/4xnscvhb to register.

For more information on the upcoming request for proposals for Affordable Housing Production Program funds, or to obtain a copy of the proposal guide, visit www.hawaiicounty.gov/ahp or email ohcd.ahp@hawaiicounty.gov.

The funding was made possible through Ordinance 22-77, passed by the Hawaiʻi County Council in June 2022, and signed into law by Mayor Mitch Roth. The law appropriates a minimum of $5 million per year to the OHCD to facilitate programs that support affordable housing production on Hawaiʻi Island.

The Affordable Housing Production Program’s initial two funding rounds provided $18 million to support, increase and sustain the supply of affordable housing on Hawaiʻi Island. The infusion of funding impacted an estimated 1,176 units in the County’s Affordable Housing Pipeline.

“We are continuing to deliver on our commitment to create housing opportunities for all of our local families in order to ensure that our keiki will be able to live and thrive here for generations to come,” said Mayor Mitch Roth. “We recognize the disparities within our community and believe it’s crucial that we strive for equity to enhance everyone’s wellbeing. By focusing on the ‘gap group,’ we are dedicated to supporting essential members of our workforce such as teachers, firefighters, carpenters, and social workers, ensuring that all middle-class workers have the support they need to remain here in their homeland.”

More information on the Office of Housing and Community Development and its programs can be found online at www.housing.hawaiicounty.gov. To receive news alerts and OHCD’s quarterly newsletter, click here.