Are you looking for tax incentives to help you build or rent affordable housing in Hawaii? The federal Low-Income Housing Tax Credit (LIHTC) program and the Hawaii Housing Finance and Development Corporation (HHFDC) are two of the main sources of assistance available. The LIHTC program provides a federal tax credit equivalent to 50% of the federal LIHTC, while the HHFDC administers the program for the state of Hawaii. The U. S.
Department of Housing and Urban Development (HUD) also helps apartment owners offer reduced rents to low-income tenants. To apply, contact or visit the management office of each apartment building you are interested in. Each year, the City releases its Maximum Income and Rent Guidelines for Affordable Housing, which are based on figures published by the U. Department of Housing and Urban Development (HUD).
The City also offers financial benefits, such as fee waivers and grants, and can relax certain development regulations, such as height and surface limits, to encourage developers to voluntarily build affordable housing. The City's Affordable Housing Requirement requires affordable housing in residential complexes of 10 or more units for sale, with a few exceptions. The Department of Planning and Permitting (DPP) can approve and certify its General Excise Tax (GET) exemption to any qualified individual or company participating in a newly built affordable housing project or that has been moderately or substantially rehabilitated. The DPP Multifamily Rental Housing Program also issues tax-exempt private activity bonds (PAB) to facilitate the increase and preservation of the supply of affordable rental housing, maintain a quality living environment, leverage private sector funds to the fullest extent possible, and promote the city's affordable housing goals. The DPP also regulates affordable housing units built as part of market-driven developments (as opposed to government-funded and planned housing).
Chapter 32 of the Revised Ordinances of Honolulu (ROH) establishes flexible development rules and financial incentives for Affordable Rental Housing (ARH) projects, as long as a minimum of 80% of housing units are rented to people who earn no more than 100% of the Honolulu Area Median Income (AMI) for a minimum of 15 years. To apply for any type of help, visit your local Public Housing Agency (PHA). Download the application forms for certification of newly built or renovated housing projects or for certification of rents received in affordable rental housing projects online on the affordable housing page.
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