HCDA proposes four buyback options for Ulana Ward Village reserve housing units

The Hawaii Community Development Authority (HCDA) is preparing for the anticipated buyback of units from the Ulana Ward Village project, which is set to launch at the end of this year. This project represents the largest reserve housing initiative in the state, with nearly 700 units designated for affordable housing. During a recent meeting, HCDA officials outlined four potential options for managing buybacks, aiming to ensure that these units remain accessible to families in need.

The first option maintains the current policy, allowing HCDA to buy back units directly or designate the Hawaii Homeownership Center (HHOC) to handle the transaction. This approach would transition the units into HHOC's affordable housing program, preserving their affordability.

The second option introduces a new strategy where the original owner can sell directly to a qualified new buyer, bypassing the need for HCDA or HHOC involvement. This method aims to streamline the process and keep the units affordable without requiring HCDA to use its funds for the buyback.

The third option involves HCDA purchasing the unit and then renting it out to a qualified tenant, ensuring continued affordability while requiring HCDA to manage the property.

The fourth option proposes a modification to the existing waiver policy. If HCDA waives the buyback, the owner would need to pay shared equity immediately if they choose to rent the unit. This change would help replenish the reserve housing fund, providing additional resources for future housing initiatives.

HCDA officials noted that options one and three may require supplemental financing, and discussions are underway with the Hawaii Housing Finance and Development Corporation (HHFDC) for potential funding support. If approved, these options will be evaluated on a case-by-case basis to determine the best approach for each unit.

As the Ulana Ward Village project progresses, these discussions highlight HCDA's commitment to maintaining affordable housing options for residents, addressing community needs, and ensuring that the benefits of the new development are accessible to those who need them most.