Hawaii scores nearly $20 million in HUD money
Advertiser Staff
WASHINGTON, D.C. — Congresswoman Mazie K. Hirono (D-Hawai'i) today announced the awarding of $19.6 million in U.S. Department of Housing and Urban Development (HUD) funding to help stabilize neighborhoods and communities affected by home foreclosures, a high rate of subprime mortgage related loans, and other areas identified as likely to face a significant rise in home foreclosures.
Hawai'i's share of funds will be used to acquire and rehabilitate foreclosed residential properties that will provide homeownership opportunities to low-, moderate- and middle-income households. Funds will also be used to develop affordable rental units for families with incomes that do not exceed 120 percent of the area median income.
"The awarding of this grant comes at a crucial time for the state of Hawai'i," Hirono said in a news release issued by her office. "With the continuous news of a growing number of foreclosures and a rising unemployment rate in the islands, these projects will help create affordable housing while also providing a much-needed and significant boost to our local economy."
According to the news release, the funding is made available through HUD's Neighborhood Stabilization Program, created by Congress to offer timely assistance to ease the negative impacts of homes that have been foreclosed in communities with the greatest need:
$5.5 million of that funding will be used on O'ahu to develop 20 units in a 50-unit affordable rental project on vacant land in Wai'anae. Those funds will also go toward the building of eight units in a 140-unit affordable rental project on vacant land in 'Ewa.
$4.8 million of federal funds will go toward developing eight units in a 96-unit affordable rental housing project in Kaloko, on the island of Hawai'i. The County of Hawai'i has placed a priority on the development of the Kaloko Housing Program due to the impending closure of the only homeless facility in West Hawai'i in June of this year.
$1.3 million will go toward redeveloping three county-owned residential lots on Kaua'i. Two lots are located in Ele'ele-Kalaheo, which is a "hot spot" due to the high percentage of seriously delinquent loans and high concentration of subprime loans. One lot is located in Kekaha-Waimea, which has experienced a decline in property values of more than 23 percent.
The County of Kaua'i's Housing Agency will utilize an additional $2.9 million to acquire, rehabilitate, and resell foreclosed homes, giving priority to the acquisition of properties in areas with higher foreclosure rates such as Kapa'a, Koloa, Kalaheo, Lihu'e and Princeville.
$3 million in federal funds will be utilized to acquire, rehabilitate and sell at least 13 foreclosed homes on the island of Maui. Priority will be placed on acquiring homes in the higher risk foreclosure areas of North Kihei, Kahului, Lahaina, and Wailuku.
The remainder of the $19.6 million will be utilized to cover administrative costs in all four island counties.
