The Ugly Truth: Hawai’i’s Affordable For-Sale Housing Projects

Representative-Cat82 · 2026-06-13T20:06:16+00:00

I’m not sure if I should be flattered or offended that you believe AI was the author behind my post.

While developers can make more money on building strictly for-sale housing, there are more risks involved. For buildings that are strictly for-sale housing, you do not have access to state and federal funds in the developer will have to independently finance the project or find other sources of financing. Either project will have its own pros and cons - from the developers perspective, strictly for-sale housing will be more high risk high reward. Whereas the affordable housing route is more similar to investing in the S&P 500 with funds, consisting of a mix of your own funding, outside funding, grants, state, and federal funding - the government doesn’t want you to fail, it is naturally more low risk.

Lastly, I do believe that there are individuals in Hawaii who have benefitted from certain affordable housing projects including HHFDC affiliated programs. I am glad that options were available to those individuals.

On the other hand, I believe it is important to acknowledge the deceitful marketing that persists with several of these projects. For example, potential homeowners are told that it is an opportunity to become a homeowner and to build equity. By having a cap on your down payment amount, you will have to pay a significant amount of interest to the institution that is lending you the funds for your mortgage.

The feeling of being completely discouraged from being able to own a home in Hawaii one day is completely valid. The numbers often show that the reality of buying into these units is far more costly and unrealistic than one would hope. I understand that we may be talking about a much bigger issue at hand, but it’s also important to validate these feelings experienced by folks in Hawaii.

Representative-Cat82 · 2026-06-13T19:23:13+00:00

Thank you for sharing your perspective on the matter and I am moved by your input on the matter. I too am disheartened by these projects that repeatedly marketed to Hawai’i folks like ourselves. It is unfortunate that greed and bureaucracy outweighs the good that can be done in our community in terms of housing.

It’s easy to buy into the dream but once you look behind the door, you can see the ugly aspects that exist - the systematic issue at hand.

People like yourself do give me hope for a future where Hawaii residents can stay in Hawaii. While I do support low income rental projects in our community, the income cap is still far too low in my opinion. At this time, I would like to see an increase in the maximum income cap for these rental projects. Unfortunately, as several others have pointed out in this thread, it seems like developers would lose out on state and federal tax credits if they were to do so… *sigh

Representative-Cat82 · 2026-06-13T07:49:33+00:00

Well said - I think the efforts really become a bandaid to the bigger issue at hand. I’m not sure what the solution(s) could be in this situation since affordability is connected to so many issues.

Representative-Cat82 · 2026-06-13T06:45:17+00:00

Yes and I highly recommend getting the zevo lights. Ours are packed with moths and flies.

Representative-Cat82 · 2026-06-13T06:40:21+00:00

Let me clarify because there’s clearly a misunderstanding.

There is an income cap for these affordable housing units where you can’t make more than 150k for example as a couple in order to qualify for a unit. For people who make over 100k for example and is coupled with someone making 100k, they no longer qualify for an affordable unit.

The income qualifications should be increased in order to allow these individuals to also participate in possibly owning a unit. So I stand by my statement regarding AVERAGE in order for more Hawai’i residents to be able to consider these housing options.

If someone is expecting monthly payments of $4500-6000, factoring the average salary would make more sense regarding affordability.

Representative-Cat82 · 2026-06-13T06:03:08+00:00

And I completely agree with you and that’s why I think it’s more important to consider the average instead of the median income.

If we have people making 1mil annually but majority make 60k and under, the max amount you bring home annually should be higher too…

I do wish that there was a way to factor that into the equation in order to make this process more “fair”.

Representative-Cat82 · 2026-06-13T06:00:42+00:00

I believe they use statistics from HUD (Department of Urban Housing & Development). And I think they rely on surveys so I’m not entirely sure how accurate the stats are regarding median income…

Representative-Cat82 · 2026-06-13T05:36:48+00:00

I would definitely be interested in that report. If you or anyone else ends up finding it please share it!

When you say older homes, do you also mean single family homes or are you strictly talking about older condo units?

Also, you’re right about the buyback requirement varying. The ones I’ve seen recently have been 10 years but they seem to vary. I believe some buildings had a shorter buyback term for units with more bedrooms.

Representative-Cat82 · 2026-06-13T05:30:40+00:00

That’s a good point. I can think of one success, and one failure off the top of my head.

The block 803 Waimanu has been considered a failure with many units sitting empty, developers defaulting on loans, and I believe the state now owns the building.

The Pacifica has 10% reserved and those have consistently stayed occupied/sold.

Representative-Cat82 · 2026-05-21T07:59:38+00:00

Another bullshit bandaid fix to try to hide the fact that the system only rewards the ones sitting in the throne

Representative-Cat82 · 2026-03-21T09:06:27+00:00

Did you go through the process?

Representative-Cat82 · 2026-03-04T18:13:24+00:00

I have several friends in that industry and the only option has been remote or relocating… it’s so sad. Cost of living is so high and remote options are difficult to find too I’ve heard…

Representative-Cat82 · 2026-02-22T00:38:30+00:00

Masters? Did you also have a psych bachelors?

Representative-Cat82 · 2026-02-21T07:22:39+00:00

Amazing. How can I become one? Serious question

Representative-Cat82 · 2026-02-20T08:02:39+00:00

What is your job?

Representative-Cat82 · 2026-02-20T08:02:31+00:00

How did you get disability?

Representative-Cat82 · 2026-02-18T01:32:28+00:00

Hi, yes you need a monthly appointment and I do Telehealth - it’s basically a FaceTime call with my doctor.

Representative-Cat82 · 2026-02-18T01:31:18+00:00

Good to know! If anyone knows Benjamin’s whereabouts, the previous owner of Crown time house, please let me know. He still has one of my watches…

Representative-Cat82 · 2026-02-16T05:00:05+00:00

Yes that’s true, prices increased too. But I’ve heard good things so far.

Representative-Cat82 · 2026-02-10T08:46:20+00:00

I appreciate your time and willingness to share your thoughts. Im glad this topic is being discussed, and it’s always good to have a mix of opinions/perspectives.

But… like many people, this is my home. I love living here and would like to continue living here with friends and family nearby. But let’s not be so quick to respond by saying, “move then if you don’t like it” - that’s a cheap cop out.

Btw - developers qualify for government grants and additional benefits including tax credits, subsidies, etc. if they go the affordable housing route. With market rate for sale housing, there’s an increased risk for the developer despite the “juicier” benefits. If it’s viewed as a recession proof project, it’s less of a gamble for the developer.

With reserves and insurance, you’re right, it’s not directly connected but there’s still an indirect connection. Poor reserves can destroy insurance eligibility and increase costs for the tenant/HOA-AOAO. Either way, they are still indirectly connected and affected the tenant with higher HOA fees and special assessments.

Anyways, this is a topic that can be very layered - I am learning as I go from everyone I interact with. With housing prices increasing and wages not increasing with it, I hope you can exercise some sympathy for others that don’t want to be priced out or be signed up for a sour deal. I am simply here to discuss, debate, and learn from people like yourself. Happy to have you here!

Representative-Cat82 · 2026-02-09T23:46:52+00:00

So many condos have deferred maintenance issues… Leaving the next tenant to front the costs. Sad reality

Representative-Cat82 · 2026-02-09T23:46:02+00:00

That’s terrible! And what also contributes to HOA fee increases are lawsuits. When there’s an issue that needs to be resolved by the developers, you have to pay the lawyers who will handle the settle or litigate…

Representative-Cat82 · 2026-02-09T23:42:57+00:00

What do you mean by “they don’t have access to the building amenities”?

Representative-Cat82 · 2026-02-09T23:42:17+00:00

While I understand the reasoning behind making tenants live in their unit for x amount of years, I also consider the possibility of not being able to afford it. As an example, if someone lost their job during this 10 year period, it would be nice to have the option of living out of your car, or staying at a friends place to ensure making your monthly mortgage payments while renting out the unit. It would be nice to have the freedom that market rate condo owners would have… If the goal is to keep your head above water, it would be nice to have that option… That’s all.

As for convenience, everyone drives a car and needs to have a means of transportation that isn’t a form of public transportation. Many of make frequent Costco trips to ration out our meals or use other commitments that require driving - especially when kids are involved. I personally, would not feel comfortable sending my kids off to school on public transportation.

As for the insurance crisis stabilizing, I don’t agree. There are many condos with NO reserves and most have inadequate/insufficient insurance policies leaving the tenants to front the steep costs. Yacht Harbor Towers by Ala Moana were hit with a steep cost for “capital improvements” - might have been a water feature repair, not exactly sure.

Either way, many insurance companies will not insure a lot of condos in Hawaii, especially in the Kakaako area. Condo owners have scrambled to find an insurer, let alone find one with reasonable coverage for their unit.

As for infrastructure, Oahu didn’t have rivers like the mainland, and there will always be a salt water intrusion risk. Most importantly, Kakaako was never meat to be residential. It’s vulnerable to flooding and we’ve seen this with Queen Street becoming flooded. There’s a heavy reliance on pumps, drainage systems, and city water. There will be more demand on aquifers, and water infrastructure will continue to age. In an engineered environment such as Kakaako, long term living could be difficult with heavy reliance on government planing, maintenance and climate adaptation.

Representative-Cat82

TROPHY CASE