📋 Quick Take
- Developers on Oahu are required to sell a portion of new homes at below-market prices — sometimes $20K to $200K under market value.
- Who qualifies: Hawaiʻi residents who don’t currently own property, earn within income limits (typically 80–140% AMI), and are U.S. citizens or permanent residents.
- 2026 income limits for a family of 4: HHFDC $154,000 (100% AMI) / $184,800 (120% AMI, effective May 1, 2026). HCDA reserved housing (Kakaʻako): $186,750 at 140% AMI.
- How to buy: Get pre-approved → watch for lottery announcements → submit application during 30–60 day window → enter public lottery → select unit if chosen → close on home.
- Before you apply: Check the project’s income schedule, occupancy term, buyback rights, and equity repayment rules. HCDA, HHFDC, and City programs differ.
- New in 2026: HHFDC’s Hale Kamaʻāina Mortgage Program offers below-market 30-year fixed-rate loans to first-time buyers through approved lenders.
Ālia update, October 30, 2026: Ālia’s owner-occupant presale announcement lists 40 HCDA reserved homes, priced $513,784–$533,704, for households at or below 140% AMI. Packet pickup closed October 29. Completed applications must be delivered in person to the sales office by Sunday, November 1, at 5 PM, and the public lottery is Saturday, November 14. Read the dates, income limits and requirements before applying.
What Is Affordable Housing in Hawaiʻi?
In Hawaiʻi, “affordable housing” doesn’t mean low-quality housing — it means price-restricted new construction sold below market value to income-qualified local residents. Developers building large projects on Oahu are required by City & County of Honolulu ordinances to designate a percentage of units as “reserved” or “affordable” housing.
Here’s how affordable housing differs from market-rate:
| Feature | Affordable Housing | Market-Rate Housing |
|---|---|---|
| Pricing | Set by government formula based on AMI | Set by developer/market demand |
| Buyer eligibility | Income limits, residency, non-ownership requirements | Open to anyone |
| Selection | Public lottery | First-come or developer preference |
| Resale restrictions | 10-year buyback, shared equity | None |
| Rental allowed? | No (primary residence required) | Yes |
| Typical savings | $200K–$400K+ below market value | N/A |
The programs are overseen by the Hawaiʻi Housing Finance and Development Corporation (HHFDC), the Hawaiʻi Community Development Authority (HCDA) for community development districts including Kakaʻako and Kalaeloa, and the City & County of Honolulu Department of Planning and Permitting (DPP).
2026 AMI Income Limits — Honolulu County
Your household income must fall at or below the Area Median Income (AMI) threshold specified by each development. Most affordable housing projects on Oahu target buyers at 120% or 140% AMI.
Use the income schedule named in your project’s application packet. HCDA’s Kakaʻako reserved-housing table appears below. Kuilei Place and Kahuina use HHFDC’s program, while Keʻolu at Koa Ridge uses the City & County of Honolulu’s program. HHFDC’s 2026 Honolulu schedule lists: $154,000 at 100% AMI and $184,800 at 120% AMI for a 4-person household (effective May 1, 2026). Always confirm which table your project uses.
HCDA 2026 Reserved Housing Income Limits (HUD FY2026 base, Honolulu; median family income $133,400; source: dbedt.hawaii.gov/hcda):
| % AMI | 1 Person | 2 Persons | 3 Persons | 4 Persons | 5 Persons | 6 Persons |
|---|---|---|---|---|---|---|
| 80% | $86,250 | $98,600 | $110,900 | $123,200 | $133,100 | $142,950 |
| 100% | $93,400 | $106,700 | $120,050 | $133,400 | $144,050 | $154,750 |
| 120% | $112,050 | $128,100 | $144,100 | $160,100 | $172,900 | $185,700 |
| 140% | $130,700 | $149,400 | $168,100 | $186,750 | $201,700 | $216,650 |
Step-by-Step: How to Qualify and Apply
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1
Check Your Eligibility
Confirm you meet all basic requirements:
- U.S. citizen or permanent resident
- Current Hawaiʻi resident (verified via state ID, tax returns)
- At least 18 years old
- Do not currently own a majority interest (over 50%) in any residential property — anywhere in the world
- Household income within the project’s AMI limit
- Willing to occupy the unit as your primary residence
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2
Get Pre-Approved by a Lender
Work with a mortgage lender familiar with Hawaiʻi’s affordable housing programs. You’ll need a pre-qualification or pre-approval letter showing you can afford the purchase price. Aim for a 620+ credit score and stable employment history. Ask about Hale Kamaʻāina program rates.
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3
Join Project Interest Lists
Sign up for interest lists on developments you’re interested in. Developers and their sales teams announce lottery openings to these lists first. See our active developments section below for current projects.
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4
Submit Your Application During the Lottery Window
When a project opens its affordable housing lottery, you’ll have a 30–60 day window to submit your complete application. Required documents typically include:
- 2 years of federal tax returns
- Recent pay stubs (2–3 months)
- Bank statements (2–3 months)
- Hawaiʻi residency proof (state ID/driver’s license)
- Signed affidavits (non-ownership, residency, primary residence intent)
- Pre-approval letter from lender
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5
Eligibility Verification
The responsible agency or project administrator reviews your application to verify income, residency, and first-time buyer status. Only complete and verified applications move forward to the lottery.
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6
Public Lottery Drawing
Qualified applicants are entered into a random public lottery. Your assigned number determines your rank order for selecting a unit. See our lottery process section for details.
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7
Unit Selection & Contract
Lottery winners select from available units in rank order and sign purchase contracts. Expect a $500 good faith deposit at signing, followed by a total deposit of 5% of the purchase price within 30 days.
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8
Finalize Mortgage & Close
Complete your lender’s approval process and review the project’s recorded restrictions before closing. Timing depends on the home’s construction and the contract. Occupancy, buyback, and equity repayment obligations depend on the program and unit declaration.
Current Affordable Housing Developments on Oahu
Here are the major new construction projects currently offering or planning to offer affordable units on Oahu:
Keʻolu at Koa Ridge
216 affordable townhomes (1-, 2-, and 3-bedroom) by Castle & Cooke Hawaiʻi within the master-planned Koa Ridge community. Each unit includes 2 parking stalls. Income limit: up to 120% AMI under the City & County of Honolulu’s program. Confirm the current City income schedule in the application packet.
Price: Castle & Cooke’s pages currently show different ranges, from the $460s to the $650s. Confirm current pricing with the Koa Ridge sales office.
Status: Castle & Cooke lists Keʻolu as available to income-qualified buyers. No current lottery date is published. Confirm the current release with the sales team.
Kuilei Place
603 affordable units (plus 402 market-rate) by Kobayashi Group in urban Honolulu. 1-, 2-, and 3-bedroom units with Diamond Head views. This is one of the largest affordable housing offerings in recent Oahu history.
Price range: $370,600–$813,300 (developer’s published HHFDC range)
Status: The 2023 lottery is complete and the project was almost sold out by mid-2026. Ask the sales team whether any HHFDC homes remain. Completion is estimated for early 2028 (July 21, 2026 developer update).
Kahuina at Our Kakaʻako
Kahuina’s affordable homes are offered through HHFDC’s sales program. Follow the developer’s application instructions and confirm current unit availability with the sales team.
Status: HHFDC sales program; confirm the current application and selection process with the developer. Check for remaining units and updates →
Kohina at Hoʻopili — Sold Out
Affordable townhomes within D.R. Horton’s Hoʻopili master-planned community, sold by lottery in earlier releases. Kohina is sold out, and we found no current Hoʻopili affordable-housing release (checked October 30, 2026), so resale is the way in. Market-rate homes at Hoʻopili are selling now; see current Hoʻopili prices there.
Status: Sold out — see current Hoʻopili communities →
Waiakoa at Our Kakaʻako
Waiakoa’s affordable-housing project was approved by HHFDC under Chapter 201H. Its location within Kakaʻako does not make its affordable offering an HCDA reserved-housing program. Confirm final sales terms in the offering packet.
Status: Groundbreaking is anticipated in 2027. No sales date or pricing has been announced; join the interest list for updates.
Kaʻulu by Gentry
390 homes in Kapolei — 262 flex-loft multi-family and 128 single-family detached. 74 of the flex-loft units offered via HCDA’s reserved housing program.
Status: Gentry’s Release 17 offered 6 HCDA reserved townhomes by closed phone lottery on October 31, 2026; applications closed October 29. HHFDC also reported 8 DEP-designated Kaʻulu homes launching in October 2026 for eligible shortage-profession workers. Gentry’s August 2026 Release 16 was a market-townhome offering. Ask our team to confirm current reserved inventory and the next release.
The Park on Keʻeaumoku
Two-tower project (“Rycroft” and “Liona”) with studios through 3-bedrooms, completed in 2025 — both towers are occupied. Resale listings are the main path in, alongside limited developer inventory; confirm whether a unit is a developer sale and whether income limits apply.
Status: Completed 2025 — resale market active
The Lottery Process Explained
Unlike market-rate homes where you simply make an offer, affordable housing units on Oahu are allocated through a public lottery system to ensure fairness. Here’s how it works:
Before the Lottery
- The developer announces a new release of affordable units (sometimes as few as 12, sometimes hundreds).
- A 30–60 day application window opens. All applications submitted during this window are treated equally — there is no advantage to applying on day 1 vs. day 30.
- The responsible agency or project administrator verifies eligibility under the offering packet.
The Drawing
- All qualified applicants are assigned a random number in a public drawing.
- Numbers are drawn to establish a ranked list — your position determines when you get to pick a unit.
- Lotteries are public events, often held at a government office or community center.
After the Lottery
- Winners (those ranked high enough for available units) are invited to select from remaining units in rank order.
- Alternates are placed on a waitlist. If a winner drops out or fails to qualify for financing, alternates move up.
- Units not sold in the lottery may become available on a first-come, first-served basis to qualified buyers.
Restrictions, Buyback Provisions & Shared Equity
Affordable housing comes with significant restrictions designed to prevent speculation and keep homes available for local residents who need them. Understand these fully before you apply.
Check the program and unit declaration
- HHFDC projects: Buyback and shared-appreciation obligations are separate. Read the unit’s declaration for the term and repayment formula; do not assume a standard 15–25% repayment.
- HCDA Kakaʻako reserved housing: The deed specifies the regulated term. Shared equity can remain payable after that term ends. Kalaeloa offerings have their own applicable rules.
- Keʻolu’s City program: The developer describes a ten-year restriction period and no shared-appreciation payment to the City.
Before a sale, refinance, rental, or title change, ask the administering agency which approvals and payments apply. Compare the programs in our HCDA, HHFDC, and City program guide.
Hale Kamaʻāina Mortgage Program
Launched in December 2025, the Hale Kamaʻāina Mortgage Program (formerly known as Hula Mae) is HHFDC’s flagship below-market-rate mortgage program for first-time local homebuyers. This is a game-changer for affordable housing buyers.
Program Highlights
| Feature | Details |
|---|---|
| Interest Rate | Below-market 30-year fixed rate set by HHFDC’s bond pricing — rates change often; see HHFDC’s current rate |
| Down Payment Assistance | Ask an approved lender whether down payment assistance is offered in the current bond series |
| Eligible Properties | Single-family homes, condos, townhomes, PUDs |
| Loan Types | FHA, VA, USDA, Conventional |
| Program Funding | New funding available (2026 Series A); amount not published |
Who Qualifies?
- First-time homebuyer (haven’t owned in the past 3 years)
- Hawaiʻi resident, 18 years or older
- Meet federally mandated Mortgage Revenue Bond (MRB) income limits
- Purchase price must be within HHFDC annual limits by county
- Must complete HUD-approved homebuyer education/counseling
How to Apply
The Hale Kamaʻāina program is offered through approved lenders, including American Savings Bank and others via the eHousingPlus platform. Contact an approved lender directly or reach out to our team for guidance on combining this program with an affordable housing purchase.
📖 Program details: HHFDC — Hale Kamaʻāina Mortgage Program
HHFDC & HCDA Programs Overview
Two main government agencies oversee affordable housing on Oahu:
HHFDC (Hawaiʻi Housing Finance & Development Corporation)
The primary statewide agency for affordable housing. HHFDC:
- Sets income limits and qualification criteria
- Manages the affordable housing lottery and eligibility verification process
- Administers the 10-year buyback and shared appreciation provisions
- Operates the Hale Kamaʻāina Mortgage Program
- Runs the Affordable Resale Program — previously owned affordable units re-sold to qualified buyers
- Contact: (808) 587-0620 · dbedt.hawaii.gov/hhfdc
HCDA (Hawaiʻi Community Development Authority)
Oversees community development districts including Kakaʻako and Kalaeloa. Reserved-housing rules differ by district and project. HCDA:
- Administers Kakaʻako reserved housing, including Ward Village offerings. Kahuina and Waiakoa are in Kakaʻako but have HHFDC affordable-housing programs
- Serves the 80–140% AMI range
- Has a slightly different first-time buyer definition (no property ownership in the past 3 years vs. HHFDC’s 1 year)
- Contact: (808) 594-0311 · dbedt.hawaii.gov/hcda
City & County of Honolulu — DHLM
The Department of Housing and Land Management provides additional programs:
- Down payment assistance — up to $40,000 for qualifying first-time buyers
- Publishes the official AMI income limits for Honolulu County
- Contact: (808) 768-7076 · honolulu.gov/dhlm
Financing Options for Affordable Housing Buyers
One of the biggest advantages of buying affordable housing on Oahu is access to specialized financing. Here are the main options:
| Program | Organization | Key Benefits |
|---|---|---|
| Hale Kamaʻāina | HHFDC | Below-market 30-year fixed rate; ask lenders about down payment assistance |
| DPAL | HHOC Mortgage | Up to $125,000 second mortgage at 4.5% for down payment |
| AHO Program | Office of Hawaiian Affairs | 3% down, no PMI — for Native Hawaiian buyers |
| FHA Loans | Various lenders | 3.5% down, flexible credit requirements (580+ score) |
| VA Loans | Various lenders | 0% down for eligible veterans and active military |
| USDA Loans | Various lenders | 0% down for eligible rural areas |
| City DPA | City & County of Honolulu | Up to $40,000 down payment assistance for first-time buyers |
What You’ll Need to Budget For
- Down payment: Typically 3–5% of purchase price ($11,000–$25,000 on a $500K unit)
- Closing costs: $5,000–$10,000
- Good faith deposit: $500 at contract signing
- Monthly costs: Mortgage payment + HOA/maintenance fees + property taxes + insurance
Not Sure If You Qualify?
Our team specializes in Oahu new construction and affordable housing. We’ll review your situation and walk you through your options — no obligation.
Frequently Asked Questions
Related Guides & Resources
- Affordable Housing Lottery Guide: How to Apply & Win
- Hawaiʻi Affordable Housing Lottery: Current Status
- Koa Ridge Community Guide
- Hoʻopili Development Hub
- Kahuina at Our Kakaʻako
- Kuilei Place Condos
- All Oahu New Construction Developments
- Monthly Oahu New Homes Report
Disclaimer: This guide is for informational purposes only and is not legal or financial advice. Income limits, program terms, and development details are subject to change. Always verify current requirements directly with HHFDC, HCDA, or the project developer.
October 30, 2026 update: Project statuses, the Ālia release and Hale Kamaʻāina terms were rechecked against developer and agency sources.
October 1, 2026 correction: Program classifications and related explanations reviewed. Other prices and release dates retain their stated dates. Sources: Kuilei, Kahuina, Keolu, Kaulu, Waiakoa, Hcda.
Your next step
Not sure which program fits you?
Team Wong can check your household against the HCDA, HHFDC and City income limits and tell you which releases to watch.
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