A new low-interest loan program from Hawai‘i County's Office of Housing and Community Development can help local homeowners repair and upgrade their homes.
Through the newly launched Home Improvement Loan Program, or HILP, low- and moderate-income homeowners on Hawai‘i Island can apply for loans that range from $2,500 to $50,000 at a 3% simple interest rate.
The goal, the county said in an announcement this week, is to help families "repair, improve or modernize the homes they personally occupy as their primary residence."
"Hawai‘i County has a large share of older homes and the rising cost of materials, labor and permitting makes even basic repairs unaffordable for many — especially kūpuna, people with disabilities and working families on fixed incomes," Housing Administrator Kehaulani Costa told Aloha State Daily in an emailed response to questions.
She says HILP was developed to help address that gap "by offering low-interest, deferred-payment loans to eligible homeowners." This allows families to make "essential repairs and upgrades without taking on additional immediate financial burden."
"Supporting homeowners in maintaining safe and livable housing is a critical part of our overall housing strategy," Costa says. "Preserving existing homes is just as important as developing new units when it comes to ensuring housing stability for our island’s residents."
According to the announcement, eligible repairs include repairing termite or wood rot damage, fixing a leaky roof or drainpipes, lead-based paint abatement, upgrading faulty electrical wiring or plumbing, connecting to county sewer systems, termite treatment, installing solar water heating systems, and modifications to accommodate household members with disabilities.
"Programs like the HILP help preserve our existing housing stock, which is one of the most efficient and cost-effective strategies we have to address housing needs," Costa says. "Building new housing is essential, but it's also expensive and time-consuming — often taking years to plan, build and complete.
"By investing in repairs and improvements to homes that already exist, we can quickly and affordably keep people safely housed, prevent displacement and reduce pressure on our limited supply of affordable units," she continued. "Extending the life of these homes is a practical way to strengthen neighborhoods and maximize the value of our existing housing assets."
The loan program is funded by the county through the Affordable Housing Production Program. A county ordinance enacted in 2022 requires at least $5 million per year to be allocated to OHCD "to facilitate programs that support affordable housing production."
Costa says that Hawai‘i County allocated $875,000 to the HILP through the fiscal year 2024-2025 Affordable Housing Production Program.
The county also is committed to growing this program, she noted, "and is actively exploring additional funding opportunities through state, federal, and philanthropic sources."
Hawai‘i County also offers the Residential Repair Program, which Costa says is a similar initiative funded with federal sources. That program, however, is not currently accepting applications because the federal funding has been exhausted. Costa says that if new funding becomes available, however, the county is "prepared to reactivate the program."
Applications and more information about HILP can be found here.
According to the application packet, only owner-occupants whose household income is within the noted income limits are eligible. Those limits range from $67,760 for a household of one to $127,680 for a household of eight.
Homeowners 62 years or older, or who have a disability, may be eligible to have half of the loan’s principal balance forgiven at the end of the 15-year loan period, the county noted.
"We anticipate strong demand for this program, based on the success and popularity of our previous Residential Repair Program, which regularly received more applications than available funding," Costa told ASD.
"There is a clear and ongoing need across Hawai‘i Island for support with home repairs and improvements. Through HILP, we aim not only to provide direct assistance, but also to raise awareness that these resources exist — encouraging more homeowners to take proactive steps to preserve their homes and remain safely housed for years to come."
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Stephanie Salmons can be reached at stephanie@alohastatedaily.com.
