Federal plans target
Hawaiian housing

2 programs will help native Hawaiians
qualify for home loans to buy or fix a home

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By Pat Omandam
pomandam@starbulletin.com

Two new federal programs that put affordable housing in the reach of native Hawaiians may help move them off the 17,108-applicant homestead waiting list.

"So many of our families that are on the list either cannot afford it or that there are income issues. And that's what this primarily addresses," said Jobie Yamaguchi, deputy director of the state Department of Hawaiian Home Lands.

Many people waiting for a Hawaiian Homes house and lot cannot qualify for mortgages, but the programs could help them qualify and get off the list.

The first program is a new $9.6 million block grant program for those eligible for homestead leases. The money will enable Hawaiian Homes to help native Hawaiians buy, build, fix, pay or learn about homes and homeownership.

For example, the block grants could help build a new home or renovate an older one on a homestead lot. Or it could help counsel Hawaiians about homeownership.

It also will be the first time since 1974 that native Hawaiians have access to federal housing block-grant funds. Such funding has been available to American Indians and Alaska Natives since 1996.

The other program would back up to $40 million in private mortgages with a federal loan guaranty. It allows those eligible for homesteads but who do not qualify for private mortgages access to get guarantees so they can secure mortgage loans from lenders.

"Both of these programs, separately and together, will increase the homeownership opportunities for native Hawaiians and will boost the number of lower-income native Hawaiians who become homeowners," said Michael Liu, assistant secretary of the U.S. Department of Housing and Urban Development.

Liu announced the start of the programs yesterday at Iolani Palace as he completed a two-day trip to Hawaii to commemorate the month of June as National Homeownership Month.

Liu said its no secret the housing problems for native Hawaiians are serious. Statistics show 49 percent of native Hawaiians experience housing problems, compared with 44 percent for American Indians and Alaska Natives.

About 27 percent of all other U.S. households experience such problems. "We can do a lot better," Liu said.