Families buy state homes

By Eloise Aguiar
Advertiser Windward OÎahu Writer

WAIMANALO — Four years of saving, readjusting lifestyles and budgeting have paid off for nine low-income families who purchased their state-owned public housing in Waimanalo Homes last week with the help of city, state and community agencies and banks.

Ownership of a four-bedroom, two-bath home has given Rose Nishida, 61, freedom to do what she wants in her home, including having pets, expanding her garden and letting relatives stay over without having to get permission from the manager .

"It was a long struggle but now nobody can tell us what to do," Nishida said.

Nishida says she needs a big house to accommodate visitors and take in family when they are down on their luck and need a home.

The families were helped by Waimanalo Community Development Corporation, which provided homebuyer education classes, counseling and assistance in developing a plan to purchase the homes including the savings account.

This community development initiative is the first ever sale of state-owned, federally assisted public housing units in the state, said Lori McCarney, executive vice president at the Bank of Hawai'i.

BOH issued the 30-year mortgage loans at reduced fee and the Individual Development Accounts — the down-payment savings account — without fees. The Federal Home Loan Bank of Seattle granted each home buyer $10,340 to go toward the down payment.

Housing and Community Development Corporation of Hawai'i also assisted the home buyers by sharing the equity, which lowers the sales price. The 2-, 3- and 4-bedroom single-family homes are selling for between $83,5000 and $93,250.

With the Shared Appreciation program the sale price is half the appraised value, but should the new homebuyers sell or refinance, they will be required to buy the state's share of the equity.

Motivated to own their homes, homebuyers were willing to change their lifestyle to save money for a down payment, Nishida said. Her husband quit smoking, and she cut everyone's hair. They stopped going to the movies and eating out. Their goal was to raise enough money to qualify for city matching funds. For every dollar they saved, they received $3, up to $5,000.

The Nishidas will pay about $500 a month for their home, which Nishida said is the maximum she can pay with her husband retired and her working part-time for a school bus service.

"This is a proud moment for everyone," said Gregory Field, executive director of the Waimanalo Community Development Corp. "Against all the odds, these families rose to the occasion. They worked hard to achieve this, changing their living situation, changing their lives and for some, overcoming credit issues."

Reach Eloise Aguiar at eaguiar@honoluluadvertiser.com.