HONOLULU (KHON2) — The State of Hawai’i and the counties of Hawai’i and Kaua’i partnered up with Hawai’i Community Lending (HCL), a nonprofit development financial institution to launch a $5 million Homeowner Assistance Fund pilot project.
This federal fund was created by the U.S. Congress to relieve financial hardships related to the pandemic.
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“For nearly six months, our county’s rental and utility assistance program has been helping our renters and landlords affected by the ongoing challenges of the COVID-19 pandemic,” said Kaua’i Mayor Derek Kawakami. “Through this new and highly anticipated mortgage assistance program, we are excited that homeowners will finally be offered some much-needed relief as well.”
According to HCL, 200 homeowners on Hawai’i Island and Kaua’i will receive grants to bring their mortgage current or to reduce their monthly payments.
HCL said priority will be given to low and moderate-income homeowners, earning below 100% area median income and or socially disadvantaged borrowers, including Native Hawaiians, American Indians, Alaska Natives, Pacific Islanders, African-Americans, Hispanic populations and homeowners with English as a second language.
As we emerge from the pandemic, many families are still struggling with the economic fallout,” said Gov. David Ige. “Now many homeowners in Hawai’i and Kaua’i counties may be eligible for mortgage assistance under this pilot program. It’s great to see all levels of government coming together to strengthen our communites.”
Homeowners must earn less than 150% area median income and meet program requirements established by both the State and the county they reside at:
- Property must be located on Hawai’i Island or Kaua’i
- Primary residence of homeowner
- Single-family homes or condos only
- First mortgages only – no HELOC, second mortgages or reverse mortgages
- Mortgage origination date prior to Jan. 21, 2020
- Experienced financial hardship during COVID-19 pandemic
- Have less than $25,000 in assests or less than 5x mortgage payment
- Submit federal tax returns and or other income documents
- Complete intake listing on all household members
To learn more about the pilot program, go to HCL’s website.