HUD No. 05-114
September 1, 2005
FIRST LOANS CLOSE UNDER HUD NATIVE HAWAIIAN LOAN GUARANTEE PROGRAM
Department of Hawaiian Homelands provide financing for 11 local families
HONOLULU - The U.S. Department of Housing and Urban Development announced today that 11 Hawaiian families have become first time homeowners this month thanks to a HUD mortgage loan guarantee program that was created specifically to provide more affordable housing and homeownership opportunities to Native Hawaiians. These are the first homes to be purchased using a loan that is backed by HUD's Native Hawaiian Loan Guarantee Program [Section 184 (A)].
The Department of Hawaiian Home Lands (DHHL) borrowed $1.67 million from Wells Fargo Home Mortgage's Native American Lending Division to provide permanent financing for 11 single-family homes in Waiohuli, Maui. This private financing is being guaranteed using Section 184 (A).
"This program is about giving Hawaiian families the opportunity to live the American Dream of homeownership," said Deputy Assistant Secretary Rodger Boyd, who announced the closing today at the 4 th Annual Native Hawaiian Conference in Honolulu. "These closings are fulfilling the purpose of this program, which is to attract private capital to build on Hawaiian Home Lands."
HUD announced in this past spring that DHHL was interested in tapping into the program to build 20 homes. Since that time, DHHL has worked with private lenders to borrow the necessary funds. These 11 homes are being privately financed with Section 184(A) backing. The other nine homes are being purchased or financed using other means. The homes are currently under construction and are expected to be available for occupancy in late 2005.
The Section 184 (A) program was created in 2001. The loan guarantee program places an emphasis on institutional transactions with entities such as DHHL to leverage millions of dollars of private mortgage resources to provide Native Hawaiians with greater access to mortgage loans for single-family homes located on Hawaiian Home Lands. The Section 184 (A) program currently has $157 million in loan guarantee authority.
HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development as well as enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet and espanol.hud.gov.