OHA seeks $3 million to expand reserve-backed loan program helping Native Hawaiian homebuyers

The Office of Hawaiian Affairs asked trustees to approve a $3 million request for fiscal years 2026–27 to expand Ajo, a reserve-backed loan program that places capital on deposit to reduce down-payment requirements for mortgage-ready Native Hawaiian borrowers. The presentation said the program lets approved borrowers purchase homes with as little as 3% down and no private mortgage insurance by holding OHA capital on deposit up to 17% of the home's value in partnership with American Savings Bank.

OHA staff described Ajo as “not a grant” and “not cash assistance,” calling it a “strategic capital guarantee” that meets lender requirements without increasing borrower debt. The presentation said Ajo launched in FY25 with a $1.5 million reserve and that, to date, 66 applicants have been referred to American Savings Bank, 30 borrowers have been approved, and seven were pending closing at the time of the presentation. The speaker said $600,000 of the initial $1.5 million reserve had been used and that the approvals represent about $3.9 million in pending home purchases.

The presenter told trustees the requested $3 million could support roughly 35 additional Native Hawaiian homeowners over the next two fiscal years, bringing the program's reach to about 52 families across three fiscal years and unlocking an estimated $22.5 million in purchasing power based on current reserve averages. Staff said OHA’s econ team provides program stewardship, referral coordination with American Savings Bank, financial modeling, and cross-departmental implementation oversight.

Trustees asked whether enrollment in the Native Hawaiian Registry would be required for program participation; staff replied that registry enrollment would be leveraged for participation in Ajo, as it had been for the program’s initial referrals. Trustees and staff also discussed outreach materials, including QR codes and printed handouts for neighborhood board meetings and island roadshows to introduce beneficiaries to the program.

The presentation included island-level context: staff said average purchase prices among current closings were about $570,000 and that prices vary by island (Molokai, Oahu, Big Island, Maui). Staff framed Ajo as addressing a structural affordability gap between median home prices and median Native Hawaiian household income.