Kahuina DEP Program Offers Up to $90,000 in Equity Assistance for Eligible First-Time Homebuyers

A new homeownership opportunity has just been announced at Kahuina in Kakaʻako, offering qualified buyers up to $90,000 in equity assistance toward the purchase of a new condominium.

Kahuina is now participating in the Hawaiʻi Housing Finance and Development Corporation’s Dwelling Unit Revolving Fund Equity Pilot Program, commonly referred to as the DEP Program.

Only 27 Kahuina residences have been designated for this special program. The opportunity is intended primarily for eligible Hawaiʻi residents working in professions that are experiencing critical workforce shortages.

For qualified buyers, the DEP contribution can reduce the amount that must be financed through a first mortgage, potentially making it easier to qualify for a home and lowering the resulting monthly mortgage payment.

What Is the DEP Program?

The DEP Program is an equity-assistance initiative administered by the Hawaiʻi Housing Finance and Development Corporation, or HHFDC.

Under the program, HHFDC contributes a portion of the purchase price in exchange for an equity interest in the residence. At Kahuina, eligible buyers may receive an HHFDC contribution of up to $90,000.

The contribution is structured as a 30-year, zero-interest second mortgage with no required monthly payments.

It is important to understand that the DEP contribution is not a traditional grant or a permanent discount on the purchase price. The original HHFDC contribution, along with an applicable percentage of the residence’s net appreciation, will generally become payable when certain events occur.

These events may include:

• Selling or transferring the residence

• Refinancing or obtaining additional financing

• Converting the residence to a non-owner-occupied property

• Reaching the end of the 30-year DEP term

The homeowner may also choose to repay the DEP obligation earlier, subject to the program’s requirements.

How Much Assistance Is Available?

Kahuina has designated a combination of one-bedroom and two-bedroom residences for the DEP Program.

One-Bedroom Residences

A total of 23 one-bedroom residences have been designated. These homes range from approximately 507 to 595 square feet.

The published pricing includes:

• Original purchase prices from approximately $604,800 to $666,000

• HHFDC equity contribution of $90,000

• Adjusted DEP purchase amounts from approximately $514,800 to $576,000

The $90,000 contribution represents approximately 14% to 15% of the original purchase price, depending on the residence selected.

Two-Bedroom Residences

Kahuina has also designated four two-bedroom, one-and-a-half-bath residences of approximately 708 square feet.

The published pricing includes:

• Original purchase prices from approximately $692,800 to $735,900

• HHFDC equity contribution of $70,000

• Adjusted DEP purchase amounts from approximately $622,800 to $665,900

The contribution represents approximately 10% of the original purchase price.

Specific prices, floor levels, floor plans and availability will vary by residence and remain subject to change.

Which Professions May Qualify?

The Kahuina DEP Program is intended to support Hawaiʻi residents employed in professions experiencing critical workforce shortages.

Eligible professions currently include:

• Health care workers

• Educators

• Law enforcement officers

• Correctional officers and correctional facility staff

• Agricultural field workers

• Emergency medical technicians

• Water safety officers

• Construction inspectors

• Victim witness counselors

Applicants will be required to provide documentation confirming that they are currently employed in an eligible profession.

Final employment and program eligibility determinations will be made through the official application and approval process.

Additional Eligibility Requirements

Employment in an approved profession is only one part of qualifying for a Kahuina DEP residence.

Applicants must also qualify as eligible purchasers under Kahuina’s HHFDC Affordable Housing Program.

General requirements may include:

• Hawaiʻi residency and domicile

• U.S. citizenship or permanent resident status

• Owner occupancy of the residence

• Sufficient income and credit to obtain mortgage financing

• Household income within the applicable HHFDC limits

• Compliance with all project and HHFDC documentation requirements

HHFDC will make the final determination regarding each applicant’s eligibility.

The DEP Program also includes two especially important restrictions.

Applicants Cannot Own Other Real Property

DEP applicants cannot own any other real property at the time of purchase.

This restriction applies not only to property located in Hawaiʻi, but also to real estate owned elsewhere.

For most applicants, this means the program will be most relevant to true first-time buyers or individuals who no longer own any real property.

Gift Funds Cannot Be Used

Gift funds cannot be used toward the purchase of a Kahuina DEP residence.

Applicants will need to demonstrate that they have sufficient personal funds for the required deposit, down payment and applicable closing expenses.

This requirement makes early financial preparation especially important.

What Will Buyers Need to Apply?

A complete Kahuina DEP application will require more than a standard mortgage prequalification.

Prospective buyers should be prepared to provide:

1. A DEP prequalification letter from an approved Kahuina project lender

2. A completed Verification of Employment form

3. A signed and notarized DEP Program Affidavit

4. A complete Kahuina HHFDC Affordable Housing application

5. All requested income, asset and financial documentation

Missing documents, an incomplete affidavit or an application that has not been properly notarized could delay or prevent approval.

Buyers should begin reviewing their eligibility and financial position as early as possible rather than waiting until they are ready to select a residence.

Only 27 Kahuina homes have been designated for the DEP Program, and applications received after the initial offering period are expected to be processed on a first-come, first-served basis while qualifying residences remain available.

Understanding the Ownership Restrictions

Kahuina DEP residences remain part of the project’s HHFDC Affordable Housing Program.

Kahuina’s affordable residences are generally subject to a 10-year owner-occupancy and buyback restriction. During the applicable restriction period, the residence must remain the owner’s primary home.

If an owner wishes to sell or transfer the residence during the restriction period, HHFDC or another qualified entity may retain the first opportunity to purchase the property according to the program’s requirements.

The residence may also be subject to HHFDC Shared Appreciation Equity provisions.

These affordable-housing obligations are separate from the DEP equity contribution. Buyers should carefully review and understand both sets of requirements before entering into a purchase contract.

Buyers exploring other affordable or workforce housing opportunities may also want to review our latest updates on Kuilei Place and other new condominium programs across Honolulu.

Is the DEP Program the Same as a Down Payment Grant?

No.

The DEP contribution can reduce the amount a buyer must finance through a first mortgage, but it is not free money and should not be described as a traditional down payment grant.

HHFDC receives an equity interest in the residence. The original contribution and an applicable share of the home’s appreciation will generally need to be repaid when the property is sold, transferred, refinanced or no longer occupied as the owner’s primary residence.

Even with these future repayment requirements, the program may provide a meaningful opportunity for buyers who have sufficient income to support homeownership but are having difficulty qualifying for the full original purchase price.

Why Buyer Representation Matters

Affordable-housing and equity-assistance programs often involve several overlapping approval processes.

A Kahuina DEP buyer may need to coordinate:

• HHFDC affordable-housing eligibility

• DEP occupational eligibility

• Mortgage prequalification

• Employment verification

• Financial documentation

• DEP affidavits and disclosures

• Residence selection

• Contract deadlines

• Developer and lender requirements

The project sales team represents the developer.

Buyers are entitled to have their own real estate representation to help them understand the process, evaluate available residences, coordinate with an approved lender and protect their interests throughout the transaction.

Buyer representation should be established before visiting the sales gallery, registering directly with the project or beginning the formal application process.

Start Preparing for the Kahuina DEP Opportunity

For qualified first-time buyers working in an approved profession, the Kahuina DEP Program may provide a rare opportunity to purchase a new condominium in Kakaʻako with up to $90,000 in HHFDC equity assistance.

With only 23 one-bedroom residences and four two-bedroom residences designated for the program, preparation and timing will be important.

Interested buyers should begin by reviewing their employment eligibility, available personal funds, current income and credit position. The next step is obtaining guidance from a knowledgeable buyer’s representative and connecting with an approved project lender.

Contact Ed Chong and ONE Pacific Realty for confidential buyer representation, an initial eligibility discussion and assistance navigating the Kahuina DEP application and purchase process.

ONE Pacific Realty, Inc.
Helping Hawaiʻi’s first-time buyers prepare for homeownership and new-development opportunities.

ONE Pacific Realty, Inc. is not affiliated with Kahuina, Kakaako Block C, LLC, Stanford Carr Development, HHFDC or any participating lender. Program requirements, prices, availability, application procedures and timelines are subject to change. Final eligibility determinations are made by HHFDC, the developer and participating lenders. Prospective purchasers should review all official program documents and consult appropriate financial, tax and legal professionals before purchasing.