OHA says AHAO pilot has closed first home; 381 inquiries and nearly $4 million in purchase pipeline after 13 weeks

The Office of Hawaiian Affairs reported progress this meeting on AHAO (Access to Homeownership), its deposit-backed mortgage pilot with American Savings Bank, including the program’s first closed purchase and a multi-island pipeline of applicants.

Director of Economics and Business Resilience Poni Eskew told trustees that 13 weeks after launch the program had logged 381 inquiries and 213 beneficiaries verified through OHA’s Hawaiian Registry Program (HRP) specifically for AHAO. Staff had referred 87 beneficiaries to American Savings Bank (ASB). Of those referred, 21 received pre-qualification letters, six families were in contract and one purchase had closed in Kona.

Eskew said the program is leveraging OHA’s $1.5 million guarantee to enable nearly $3.9 million in home purchases so far and yields roughly a 5:1 leverage ratio (every OHA dollar enabling about five dollars of mortgage lending through ASB). She described the operational flow: beneficiaries contact OHA or Beneficiary Support Agents (BSAs), HRP verification occurs, OHA issues a formal referral letter to ASB, and ASB then processes loan applications.

ASB’s loan officer Lisa (identified in the meeting as the bank’s vice president and executive residential loan officer) explained the core financial mechanics and borrower benefit: OHA deposits are held at ASB as a guarantee to remove the need for private mortgage insurance (PMI). For eligible first-time buyers who provide a minimum 3% down payment, AHAO funds up to 17% are deposited at the bank to eliminate monthly mortgage insurance. The funds “are not attached to the property,” Lisa said; they are held by ASB as a guarantee and are not a repayable grant from borrowers to OHA. If the homeowner refinances, sells, or pays down the balance below the program threshold, the guarantee is released and becomes available for another beneficiary.

Using a recent example ASB provided, a buyer on Maui purchasing a $1.097 million home who put 3% down used about $186,575 in AHAO guarantee funds; the borrower’s PMI savings were roughly $500 per month. Eskew and Lisa both emphasized the program design is not direct grant funding to buyers but a deposited guarantee that reduces lenders’ risk and monthly costs for purchasers.

Financial runway and request for additional funds: Eskew told trustees OHA currently has about $591,000 earmarked from the $1.5 million guarantee in active commitments, leaving uncommitted capacity. She outlined a biennium budget request to add $3 million in guarantee capacity; that increase, she said, could unlock roughly $14.8 million more in loans over the next three fiscal years and substantially expand the program’s reach.

Operations and outreach: Eskew described weekly coordination with ASB (her primary contacts are Billy and Lisa at ASB), BSA training and intake forms to track calls and timestamps, and mid-point trainings for staff. Trustees urged more visible marketing and communications: several asked that OHA coordinate with ASB to publish program materials (flyers, logos and “boilerplate” text) so bank branches and OHA neighborhood offices can refer beneficiaries. Lisa said ASB staff across islands respond to referrals statewide and reach beneficiaries by phone, Zoom and in-person meetings; she said ASB typically follows up within 24 hours of receiving a referral letter.

Trustees also asked about eligibility and reuse of guarantee funds. Lisa clarified OHA funds are not a lien on the property and are released when the loan balance drops below the program threshold or if the borrower refinances or sells. Eskew noted the recycled guarantee funds allow the program to support successive beneficiaries over time.

What trustees asked for next: trustees requested more visible communications (updated flyers, QR code updates, social posts and possible “roadshow” events) and asked staff to distribute printed materials to OHA district/neighborhood offices and share success stories (the Kona closing and other beneficiaries) with board members and the public. CEO Stacy Ferreira noted OHA’s pilot-phase restriction that currently excludes OHA employees and their family members from eligibility; she said the board may choose to remove that restriction if the program is institutionalized with additional biennium funding.

Ending: Staff said they will continue to track referrals, update the committee and coordinate marketing and BSA workload mitigation. Trustees scheduled further oversight and suggested a presentation for OHA’s Maui meeting to connect with local residents and fire-impacted communities.