Hawaii Housing Finance and Development Corporation

Hawaii Housing Finance and Development Corporation
Name	Hawaii Housing Finance and Development Corporation
Formed	1974
Jurisdiction	Hawaii
Headquarters	Honolulu
Parent agency	Hawaii Housing Authority

Hawaii Housing Finance and Development Corporation

The Hawaii Housing Finance and Development Corporation (HHFDC) is a state-level public corporation in Hawaii charged with financing, developing, and preserving affordable housing across the Island of Oʻahu, Maui, Hawaiian Islands, Kauaʻi, and Molokaʻi. Established to address shortages identified during the postwar expansion and tourism booms associated with Pearl Harbor redevelopment and mainland migration trends, it coordinates with federal programs and local agencies to deliver rental, homeownership, and supportive housing initiatives. HHFDC operates within a policy environment shaped by statutes such as the Hawaii Revised Statutes and interacts with entities including the United States Department of Housing and Urban Development, Federal Home Loan Bank, and the Hawaii Housing Authority.

History

HHFDC traces origins to mid-20th century housing policy debates involving the Hawaii State Legislature, the Territory of Hawaii transition, and the expansion of Interstate Highway System impacts on land use. In the 1970s, following influences from federal legislation like the Housing and Urban Development Act of 1968 and regional planning efforts by the Hawaii State Planning Office, the agency was formalized to marshal financing tools and tax incentives similar to those used by the New York State Housing Finance Agency and the California Housing Finance Agency. Throughout the 1980s and 1990s HHFDC partnered with nonprofit developers such as Hawaiʻi Habitat for Humanity, municipal entities like the City and County of Honolulu, and national lenders including Wells Fargo and Bank of Hawaii to leverage Low-Income Housing Tax Credits used widely after the Tax Reform Act of 1986. Post-2000, HHFDC adapted to crises including aftermaths of the Great Recession, the COVID-19 pandemic, and regional climate challenges highlighted in reports by the National Oceanic and Atmospheric Administration and the United Nations. Recent decades saw collaborations with the Office of Hawaiian Affairs, community land trusts patterned after Burlington Community Land Trust, and initiatives informed by studies at the University of Hawaiʻi at Mānoa.

Mission and Responsibilities

HHFDC's statutory mission aligns with state housing policy set by the Hawaii State Legislature and executive directives from the Governor of Hawaii. Core responsibilities include deploying resources from federal sources like the HOME Investment Partnerships Program, administering tax credit allocations under the Internal Revenue Service, managing land conveyances influenced by the Kuleana Act legacy, and coordinating with the Department of Hawaiian Home Lands. The corporation is charged with preserving affordability for veterans associated with the United States Department of Veterans Affairs benefits, seniors served by programs promoted by the Administration for Community Living, and low-income families eligible under criteria similar to those used by the Social Security Administration for housing subsidies.

Programs and Services

HHFDC operates multiple programs modeled on national counterparts such as the Low-Income Housing Tax Credit program and the HOME Program, offering rental assistance, mortgage credit certificates, and bond financing comparable to instruments used by the Massachusetts Housing Finance Agency. Services include project-based financing in partnership with developers like The Naka Group, supportive housing coordination with providers such as Catholic Charities Hawaiʻi, and preservation of workforce housing akin to efforts by the Seattle Office of Housing. HHFDC also runs competitive solicitations for tax credit allocations, oversees compliance monitoring similar to processes at the New Jersey Housing and Mortgage Finance Agency, and sponsors pilot projects in collaboration with research centers at the Hawai‘i Community Foundation and the Kamehameha Schools.

Funding and Financial Instruments

Funding sources include tax-exempt and taxable bonds issued under state law, federal capital from agencies like the Department of Housing and Urban Development and the United States Treasury Department, and equity generated through allocations of Low-Income Housing Tax Credit administered under Internal Revenue Code provisions. HHFDC structures mortgage revenue bonds, housing revenue bonds, and conduit financing comparable to instruments used by the Texas Department of Housing and Community Affairs and deploys gap financing, deferred loans, and rent subsidies. The corporation also leverages grants from philanthropic entities such as the Ford Foundation, invests lien instruments compatible with Hawaii County land records, and negotiates ground leases with trusts like the Kamehameha Schools Bishop Estate.

Organizational Structure and Governance

HHFDC is governed by statutory oversight from the Hawaii State Legislature and executive appointments by the Governor of Hawaii, with administrative interaction with the Department of Budget and Finance (Hawaii). Its board composition reflects appointments similar to housing finance agencies in California and New York, and it employs divisions handling asset management, compliance, finance, and development review comparable to structures at the Minnesota Housing Finance Agency. HHFDC engages auditors and legal counsel with practices paralleling those at the Hawaii State Ethics Commission and coordinates with municipal planning departments in Honolulu City Council proceedings.

Impact and Criticism

HHFDC has facilitated development of multifamily projects, preserved affordable units, and supported homeownership programs that intersect with labor markets in sectors like hospitality linked to Prince Waikiki and Hilton Hawaiian Village. Impacts include collaborations reducing homelessness referenced in reports by Coalition for the Homeless of Hawaiʻi and outcomes assessed by academic studies at the Daniel K. Inouye School of Law. Criticisms mirror nationwide debates: allocation efficacy scrutinized by watchdogs such as the Hawaii State Auditor, concerns about displacement raised by advocates connected to ʻOhana Nui, and debates over land use and cultural stewardship involving the Office of Hawaiian Affairs and native rights participants referenced in rulings by the Hawaiʻi State Judiciary.

Category:Public benefit corporations based in Hawaii Category:Housing finance agencies of the United States