Ka Wai Ola - Office of Hawaiian Affairs, Volume 10, Number 10, 1 October 1993 — Application forms ready at First Hawaiian Bank [ARTICLE+ILLUSTRATION]

Application forms ready at First Hawaiian Bank

OHA, DHHL, FHB, announee new homestead loan program

by Ellen Blomquist OHA, First Hawaiian Bank and the Department of Hawaiian Home Lands have launched a new $20 million loan fund program to help Hawaiian homesteaders. The OHA Board of Trustees at its Aug. 4 business meeting approved the creation of two $10 million revolving loan funds, subject to approval of the Hawaiian Homes Commission. One of the $10 million loan funds will provide money for down payments to help beneficiaries purchase their homes on Hawaiian home lands; the other will pay for loans to repair and improve homes presently on Hawaiian home lands. Repayments by homesteaders to the revolving loan funds will continue to make loan money available to other homesteaders. The agreement between OHA, DHHL and First Hawaiian Bank is currently being reviewed, but First Hawaiian Bank has begun to take applications so that the loan approvals are expedited when the agreement is finalized.

Applicants for down payment loans must have a homestead award; applicants for improvement loans must be currently living on homestead land. The down payment loan program is designed for Hawaiians who are eligible for Hawaiian homestead land and a mortgage and have received their lot award, but do not have the money for a down payment. The maximum loan amount will be $20,000 at 6 7/8 percent based on a 20-year amortization scheduled over a 10-year period. The home improvement loan fund is to ensure that Hawaiians currently residing on homesteads live in adequate, suitable housing. The maximum loan amount for this program is $50,000 with the same loan terms as the down payment fund. Loans from both funds will be fully guaranteed by the Department of Hawaiian Home Lands to enable it to record the mortgages as authorized liens. First Hawaiian Bank has agreed to administer the loan program,

with a minimal loan service charge, as a public service eontribution to the Hawaiian people. Applications are available now at all First Hawaiian Bank locations and finance eompanies. Because there is no bank branch on Moloka'i, homesteaders may request application forms by writing to First Hawaiian Bank, Residential Loan Dept., 1132 Bishop St., 16th floor, Honolulu, Hawai'i

96813, Attention Wanda Agpalsa. First Hawaiian Chairman and CEO Walter Dods Jr. noted that First Hawaiian is proud to be a partner with OHA and DHHL to provide the financing for these innovative loan programs. "Affordable housing remains one of our state's most critical challenges, and this revolving loan fund represents an important step toward making home

ownership a reality for native Hawaiians," Dods said. "These two programs I think are real contributions to Hawaiian eommunities." Dods noted that a 10-year $20,000 loan might have payments as low as $154 a month, or, on a $50,000 loan, payments of $384 a month. The home improvement loan could be used, for example, to replace old wiring or add an extra bedroom. According to OHA's Chairman Clayton Hee, "In this case, OHA is linking arms with the Department of Hawaiian Home Lands and First Hawaiian Bank to provide more and better housing for our beneficiaries. In too many cases, we have found that our people ean make the monthly payments for a new home, but can't afford the down payment. One of the funds will provide the means to make that down payment. We also need to rebuild and repair existing homes on homestead land: homes that are substandard, that house more than one family, that eonūnueā on page 16

Chairman Hee announces the new loan program. With him from left to right are Lt. Gov. Ben Cayetano, Sen. Daniel Akaka, DHHL Chair Ho'aliku Drake, Walter Dods Jr. of First Hawaiian Bank. Photo by Patrick Johnston

OHA, DHHL, First Hawaiian Bank, offer loans to homesteaders

continued from page 1 house more than one generation. This program will ensure that our people have the kind of housing they deserve." Ho'aliku Drake, DHHL chairwoman, said, "This program

represents a major joint effort between the Hawaiian Homes Commission and OHA trustees to benefit native Hawaiians." "We weleome this increased support from OHA. We hope this is just the beginning of

more such efforts to serve the native Hawaiian community." Hee added, "We ean all agree that too many native Hawaiians have waited too long for what is rightfully theirs. But there is strength in unity. DHHL and

OHA working together, with the assistance of First Hawaiian Bank, ean begin to realize the opportunity for land and homes frrst promised native Hawaiians over 70 years ago." Drake noted that in prior years

the FHA required a down payment from homesteaders applying for a home building loan, but they would not allow homesteaders to borrow elsewhere to make their down payment. Now, with, two state agencies, OHA and DHHL, agreeing to guarantee the down payment loan, FHA has given approval. Not all families have problems raising a down payment, she said, but many do. This loan fund gives them the full opportunity to build their own home, she said. She said that in 1982 DHHL awarded 2,600 lots on raw land. DHHL has now completed the infrastructure on 70 percent or 1800 lots. DHHL says it has a waiting list of 14,000 families who have applied for agricultural, residential or pastoral lots. Some families have more than one type of applieahon pending. The loan fund was announced on Sept. 2, the 155th anniversary of Queen Lili'uokalani's birthday, at a press conference at OHA also attended by the OHA trustees, DHHL commissioners, U.S. Sen. Daniel K. Akaka, Lt. Governor Ben Cayetano and invited guests. Sen. Akaka recently announced that native Hawaiian veterans who have Hawaiian Homelands awards are now also eligible for housing loan assistance through the Veteran's Administration.