As a current resident of Mehana in Kapolei, I am front and center of the Affordable Housing market. Most of the units here were originally sold by D.R. Horton with income restrictions and at below market value. In order to prevent investors from converting these units to market rate homes, owners were required to agree to two conditions: First, owners must be occupants of the property. Second, a four-year buy back period which if the owners decide to sell the home, they must agree to allow the City Department of Budget and Fiscal Services (BFS) to repurchase the property at original sales price. If the BFS waives the purchase option, the new buyer must qualify for Affordable Housing through the Department of Planning and Permitting (DPP) and the new owners must also comply with the four-year buyback period.
The great news is that when you sell your home within the four-year buy back, the purchase price is based on what you paid for the property plus all the associated fees. The four-year buyback time starts when the original owners purchase the unit from the builder and ends fours years later, regardless of how many times the property is resold. Many military members who purchased these new construction townhomes in the past three years are now preparing to PCS. If you are in this situation, you should strongly consider selling your home. I can assist you in navigating the regulations pertaining to the mandatory buyback period and Chapter 3 of the Affordable Housing Rules. I can help you apply through the BFS and DPP to ensure you get back all the money you invested into your property. I can do this in a timely matter to help relieve the stress of PCSing off island.
The First Few Steps of the Process
- Give the option to the BFS to repurchase the property at sale price for the period of the four-year buyback. (I have not seen a case where the BFS repurchased the property back from the homeowner.)
- Homeowner must submit a packet to the DPP to get approval prior to listing the property for sale.
- Buyers must meet the income requirements and family size. (Chapter 3 of the Affordable Housing Rules)
I have helped clients navigate through the Affordable Housing process and I hope to help many more. If done correctly, this process shouldn’t take any longer than a regular market priced home sale.
Contact me today to learn more about selling an Affordable Housing Unit
Jason P Fieldman, R(S) License #77520, MAHRM, MRP Combat Veteran & Military Specialized Team 808.754.8728 JasonFieldman@hawaiilife.com