Ka Wai Ola - Office of Hawaiian Affairs, Volume 12, Number 2, 1 February 1995 — OHA makes $1.7 million loan to Kauaʻi Habitat for Humanity for self-help housing projects [ARTICLE+ILLUSTRATION]

OHA makes $1.7 million loan to Kauaʻi Habitat for Humanity for self-help housing projects

"We're asking for a hand up, not a handout." - LaFrance Kapaka-Arboleda

by Ellen Blomquist The Office of Hawaiian Affairs has approved a $1.7 million inter-est-free loan to Kaua'i Habitat for Humanity, to be used for eonstructing 100 self-help houses for low-ineome native Hawaiians on Kaua'i. The board of trustees unanimously approved the loan at its business meeting Jan. 3. In making the announcement, Clayton Hee, OHA's chairman, said, "OHA has joined the building industry, to help Hawaiians move into truly affordable homes, and we are very proud and happy to be a part of it." Kaua'i Habitat's executive director LaFrance Kapaka-Arboleda said, "This is the best opportunity these beneficiaries have to end

their dependence on I public assistance and begin to dream of a secure and bright future for their families." Kaua'i Habitat, whieh was formed October 1992 after Hurricane 'Iniki, has already built homes I for 28 very low-

ineome families (ineome 30 to 50 percent of Kaua'i's median ineome); 27 of these families were Hawaiian. The organization has a special arrangement with the Department of Hawaiian Home Lands (DHHL) to build affordable homes for lessees who have lots but ean not afford a contractor-constructed house.

Ninety percent of the families targeted by Kaua'i Habitat are homestead awardees. In making the request, KapakaArboleda said, "We're asking for a hand up, not a handout." She said that Kaua'i Habitat

began with an initial investment of $500,000 from Habitat for Humanity Intemational and a $60,000 grant from OHA. It has since secured $2 million from the County of Kaua'i Pakui Housing Program and $384,000 from the Federal Home Loan Bank of Seattle to be used to construct 100 self-help homes over a three-

year period. Participating families must put in at least 500 hours of "sweat equity," 200 of whieh must be on other families' houses, "whieh fosters strong community ties and friendships," Kapaka-Arboleda said. The $1.7 million loan will be held in a drawdown account, with interest on the unused halanee eontinuing to accrue to OHA. The loan will be secured by a promissory note from Kaua'i Habitat for eaeh house built with OHA funds. When a mortgage is executed, payment to OHA will be made from the monthly payment, in an amount proportionate to the amount of OHA funds used in the construction. For instance, if OHA funds covered a third of constructing a house, the monthly repay-

ment would be a third of the family's monthly mortgage payment. The mortgage for homesteaders will be guaranteed by DHHL. Kaua'i Habitat will sell or rent homes to ensure OHA is paid back in the event of a default on nonhomestead land. According to OHA's housing officer Stephen Morse, self-help housing has proven to be the most cost-effective method of providing affordable housing for Hawaiians. "Families become homeowners through this self-help method," he said. Hee concurred, saying, "Without OHA's assistance, these families would be unable to purchase a home because they don't qualify for conventional home loan financing."

Kapaka-Arboleda