It was a day they thought would never come. The mother, a native Hawaiian, grew up in public housing. She worked her way through college and now holds two jobs to make ends meet. With an annual income of $31,000, homeownership was far from reach. By helping build their home, the family earned "sweat equity," which covered the cost of their down payment and enabled them to afford the purchase.

This family lives a long way from Washington, D.C. and probably does not even know about the partnership of private enterprise and government that's making a difference right here in Hawaii. This initiative was in the national spotlight last summer when President Clinton announced the National Homeownership Strategy - a 100-part action plan to help spark a rise in the rate of homeownership in the United States. The plan sets the bold target of extending homeownership opportunities to eight million more Americans by the year 2000.

Our nation has enjoyed a long and progressive rise in homeownership rates. In fact, the rate rose steadily from 43.6 percent in 1940 to 65.6 percent by 1980. There were many reasons for that, including the government mortgage programs offered by the Veterans Administration and the Federal Housing Administration.

After peaking in 1980, the homeownership rate declined slightly and remained essentially flat - until last year. Thanks in part to the National Homeownership Strategy and favorable interest rates, the number of American homeowners rose 1 percent in 1995, the sharpest increase in 30 years. That translates to 1.4 million more homeowners. At 65.1 percent, the national homeownership rate is the highest it's been in 14 years.

The strategy's impressive success so far can be attributed to its emphasis on the private sector to take the lead. It was originally unveiled to virtually unanimous and bipartisan praise, both because of its lofty goal and its determination not to become another government program. It is, instead, a smart public/private partnership involving many private organizations that recognize the benefit of a healthy homeownership trend.

The need for affordable homeownership opportunities is critical in Hawaii, where the price of a single-family home is nearly three times as high as in the continental U.S. and the homeownership rate is the lowest in the nation. And, in Hawaii, it is financial institutions - community banks, savings institutions and financial services loan companies - that are leading the way with initiatives that enable more families to own their own homes.

Homeownership has been shown to promote stronger families, solid citizenship and personal responsibility for the living environment. The Self-Help Housing Corp. of Hawaii operates on this premise. It helps families (including the one you just read about) afford homeownership through "sweat equity." This process not only cuts development costs in half, it gives residents the tremendous sense of pride that ownership brings.

Financial backing for Self-Help Housing's projects comes from several sources, including Bank of America, Bank of Hawaii, First Federal Savings and Loan Association of America, First Hawaiian Bank, Pioneer Federal Savings Bank, Territorial Savings and Loan Association and the Federal Home Loan Bank of Seattle.

Pioneer's First Home Loan Program has helped 307 Hawaii families purchase their first homes in the last two years. Pioneer will finance up to 95 percent of a mortgage loan to a first-time homebuyer and reduce its loan origination fees. The bank's program is specifically designed to reach Hawaii's hardworking, middle-income families who are unable to accumulate enough savings for a standard down payment and don't quality for state-supported housing programs.

The strategy begins at the heart of the matter - cutting the costs of homeownership, especially for the first-time buyer. Reducing costly financing expenses and simplifying the financing of a home purchase are goals of many Hawaii financial institutions.

Through its American Dream Loan Program, American Savings Bank requires a 5 percent down payment from first-time homebuyers and waives a share of the points, appraisal costs and certain fees. Flexible underwriting criteria at Bank of Hawaii allow eligible families to spend a larger share of their incomes for housing than is standard. Under certain circumstances, the bank has allowed families to spend as much as 45 percent of their income on housing, rather than the industry standard of 38 percent.

The National Homeownership Strategy also calls for breaking down several built-in barriers to homeownership, especially those that have hampered indigenous peoples from achieving the homeownership rates of the rest of the population. Many Hawaii lenders are working with the Department of Hawaiian Home Lands and the Office of Hawaiian Affairs to ensure that native Hawaiians eligible to lease Home Lands are able to afford to purchase or construct a home on their lands.

The financial institutions operating here understand the needs and circumstances of prospective homeowners in Hawaii. Their efforts are helping many more families realize the dream of homeownership and creating economic opportunities that benefit all residents.