Ililani Condo In Kakaako Embraces The Changes In Hawaii’s Affordable Housing
UPDATED 07/29/19:
HHFDC Price Range: $312,600 to $657,100
Official Website: www.Liveililani.com (remember to register your real estate agent)
Sales Center Officially Open Daily 10a-5p (attend w/ your real estate agent or I will be happy to setup an appointment for you if you aren't currently working with an agent)
HHFDC Packets available for pick-up at Sales Center (Applications Due August 24th)
Sign-up for an Affordable Housing Presentation: July 30th/31st or August 3rd (I can assist with registering you, LMK)
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They are still pumping out affordable housing units for sale and the most recent one will be in Kakaako, Ililani. We have had a lot of activity in the Ala Moana neighborhood within the past couple of years with many of these towers being completed within the next 5 years. Ililani will only have 328 units total with 165 affordable units and 163 market units. The sales center should be opening up within the month but you never know how these things go. Check back as we will update this blog, or feel free to call me for the latest info!
Okay let’s dive into the changes...Ililani will be working with the HHFDC affordable housing program (more info on HHFDC). The new HHFDC 2019 Income Schedule By Family Size finally came out, view below. Usually if a new development is located in Kakaako, they must follow the HCDA Reserved Housing program (more info on HCDA). Due to the developer working with the state on their HHFDC program and offering just over 50% of their units to affordable units, they did away with the requirements with HCDA’s Reserved Housing program. Unsure on the exact negotiations but usually, every developer in Kakaako must provide 20% of their units to HCDA Reserved Housing for their project. This is a big change and goes to show how negotiation between the developers and state agencies play a big role as to what moves forward.
Another big change for this Kakaako condo is that HHFDC has revised some of their rules to previous projects released. First, for those privy to Sam Koo’s two developments, Kapiolani Residences and The Central Ala Moana, which were heavily created for affordable housing buyers had rules changed on The Central to having a minimum income limit of $65,360. This was a developer’s requirement, not HHFDC’s requirement that has since been lifted to offer the remaining studio units (about 10 available for sale) to those under 140% AMI, including those making under $65,360. They range from $287,000FS-$380,000FS, if you happen to be interested in these units, let me know. This minimum income limit will NOT be a requirement for Ililani.
Another significant change falls under the word “need” of this affordable housing unit. HHFDC is now requiring the applicant to have a job or sufficient income. The applicant will have sufficient gross income to qualify for the loan to finance the purchase. There is no said amount needed to earn per year but they will have to have some money coming in. It seems they have implemented this new rule to avoid family members with cash to gift the entire purchase price to the applicant who isn’t currently working yet. This practice questions the actual need for affordable housing for this applicant. But should the applicant have some type of income, it should keep HHFDC at bay from questioning further. Applicants can still receive gifted funds and I don’t believe there is a restricted amount either. Applicants can still pay all cash with their own monies with no restricted amount. Just a reminder, there is no limit as to how much cash assets one has but I’m sure if you have too much, it will be a question as if you “need” an affordable housing unit. Another change takes place after you have officially been chosen and have secured an affordable housing unit and are waiting for the building to be built and close. This period can be several years. In the past, the date you submitted your paperwork was the date that you must qualify for all requirements for the HHFDC’s program. Should things change during the waiting period of closing, it was okay, as it was understood that life goes on and people have raises, get promoted, get married, etc. With that said, a significant change is that, if you get married or know there is an increase in occupants for the unit you are purchasing prior to closing, one must disclose this information immediately. They will review your situation and will include the income of the additional occupant by adding it to your income and make sure you are still under the qualifying income limits. If you now exceed the limits, you will no longer qualify and will no longer be able to purchase the unit. Your unit will go to a waitlist if any and once your unit had been contracted with another qualified party, you will most likely receive your initial deposits back, not guaranteed but that is common practice. This unsaid waiting period could discourage marriage until after you close. Lastly, a difference from other programs with HHFDC is that you are not limited to a smaller unit because you have fewer occupants. For example, Ililani will have one and two bedrooms and a single occupant can opt for the two bedroom if they desire the larger unit. This will allow for the applicant to age into the unit over a 10 year span versus needing to upgrade into a larger home before their 10 year restriction is up. Switching gears, now a quick update on the anticipated Ililani development in Kakaako. The information I have gathered is very general and listed on numerous websites. But to date, the developer and the sales team have not released their official website. Which means, it’s often research done separate from the developer or dated information that has often changed over the approval process and won’t be officially confirmed until they make their debut. There are numerous websites currently online and do note it’s not the official Ililani website. It is often a real estate agent’s website hoping to secure you as their client. They often have very helpful information, just know who you are talking to when making your connections and asking questions. Once the official website is listed, I will post it here. The location will be on the corner of Keawe St. and Halekauwila St. This is located near the Keauhou Place condo and close proximity to SALT Kakaako. A great location if you ask me. Very close to downtown, other parts of Kakaako and Ala Moana. It will have minimal amenities to help keep maintence fees low. They anticipate a recreation room and also a communal garden for the residents. Therefore do not expect a pool, hot tub, workout gym, movie theatre, cabanas, dog park, karaoke rooms, etc. It will be a no frills building with price point in mind for all buyers. The tower will be similar in height to all surrounding new developments but the amount of units will be less. Partially contributed to the fact that it will not have a bunch of studios but have many more two bedroom options. This makes more sense to me when applying for an affordable housing unit that requires you to reside in the unit for 10 years before renting or selling. I mean a lot will happen over a period of 10 years, I can’t imagine spending a decade in studio with a potentially growing family. Do note, one can sell within the 10 years but you will need to sell at a lower rate determined by HHFDC and also sell to another HHFDC qualified buyer at the time of sale. Therefore you will most likely lose all anticipated equity you had hoped for when purchasing. Should you need to sell your unit, please reach out to us, we have dealt with these sales in the past and are familiar with the process. UPDATED 07/29/19:
HHFDC Price Range: $312,600 to $657,100
Official Website: www.Liveililani.com (remember to register your real estate agent)
Sales Center Officially Open Daily 10a-5p (attend w/ your real estate agent or I will be happy to setup an appointment for you if you aren't currently working with an agent)HHFDC Packets available for pick-up at Sales Center (Applications Due August 24th)
Sign-up for an Affordable Housing Presentation: July 30th/31st or August 3rd (I can assist with registering you, LMK)
This is all I have for you right now. If you are new to this entire process, I highly suggest you walk into the sales center with your preferred buyer’s agent who will represent you. This will give you the opportunity to be represented by an agent for FREE. If you don’t have representation then you will be assigned a realtor on the developer’s sales team and just keep in mind, their first priority will always be the developer and you as a customer, second. Same goes for if you decide to go online. Make sure to let the sales team know who you want as your designated realtor upfront and you will be good to go. Should you have more questions about this, please don’t hesitate to ask me. I am a Realtor Associate myself for the past 14 years and partner Yumi Laney, RB-10898 for over 41 years and my goal is to educate you, give you the truth and let you make your own decisions on how you would like to proceed. I hate to see people suckered into traps, misled and uneducated on one of the largest purchase of their lives. Whether you choose to work with me or another well-qualified agent, I hope you feel empowered, educated and confident before you make any decisions. Feel free to contact me, Christina Laney Mitre, RS-67243 with Elite Pacific Properties at 808-282-1399 or Christina@LaneyRE.com. These updates are all proposed and can change at any time at the developer’s discretion. Feel free to contact us with questions and we can continue to update you with all new changes and updates as they come.
