Are you wondering how to qualify for self-help housing in Oahu? The self-help housing program in Hawaii is funded by the USDA Rural Development Self-Help Housing Program and provides operational funding to groups of eight to 10 low-income families. These groups build the homes and work together for financing. The program was established in Hawaii and has built more than 250 homes, 53 of which are in Hawi. Phase I of the Kumakua subdivision in Hawi included 22 homes. Phase II, which included 19 homes, has just been completed. Phase III will start construction in June with 12 families.
A recent acquisition by SHHCH of a 70-unit Oahu subdivision is helping low-income households build their own homes. The Pokai Bay subdivision had gone into foreclosure a few years ago, but is now being constructed by low-income households. The first phase of 35 homes is currently under construction, while the second phase of 35 is underway. Rural Development has provided financing for the first group of 35 homes, while a number other low-income families are applying to their new homes. Waianae’s median house price is $430,000. Self-help homebuyers will be required to pay no more than $250,000 for their own house, which is a fraction of the cost of a conventional house.
The Self-Help Housing Program in Hawaii offers a variety of financial and other resources to build a home for low-income families. A major goal is sweat equity, which is derived through hard work, time, and bulk purchases and not from money. The amount of sweat equity required to qualify for a self-help housing loan is calculated by subtracting the loan amount from the appraised value. The national average for this is around $25,000.
Families must provide at least 65% of the labor required to be eligible for self-help housing in Oahu. This participation depends on points derived from the regulations of the program. Tasks are determined by the sponsor organization and will vary from home to home. Most families perform framing, drywall, and painting. An experienced construction supervisor will oversee the work. Electrical, plumbing, and drywall finishing are typically outsourced to subcontractors.
If you are interested in applying for self-help housing on Oahu, you can visit the Habitat for Humanity West Hawaii, Inc. offices in Kalama’ula and Maunaloa. These organizations provide information and assistance to low-income households, as well as educational workshops and other resources. To be eligible for self-help housing, it is important to meet income requirements.