Hawaii Programs

Government Grants & Incentives for Real Estate Investors in Honolulu

Honolulu has some of the highest housing costs in the nation, driving significant government investment in affordable housing. Hawaii Housing Finance and Development Corporation's LIHTC program and local incentives aim to address the critical shortage.

25 designated tracts
Opportunity Zones
$2,400
Section 8 (2-BR)
LIHTC
Tax Credits Available
4
Local Programs

State Housing Finance Agency

Hawaii Housing Finance and Development Corporation (HHFDC)

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Public Housing Authority

Hawaii Public Housing Authority (HPHA)

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Local Programs

Honolulu Government Incentive Programs

These programs are available specifically to investors and developers in the Honolulu, HI market.

HHFDC LIHTC Program

Hawaii allocates LIHTC credits with extremely high per-unit limits reflecting the state's elevated construction costs.

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Rental Housing Revolving Fund (RHRF)

State fund providing gap financing for affordable rental housing development at below-market interest rates.

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Honolulu TOD Incentives

Transit-oriented development incentives along the Honolulu Rail corridor, including density bonuses and parking reductions.

Hawaii General Excise Tax Exemption

GET exemption on construction costs for qualifying affordable housing projects.

LIHTC Tax Credits in Hawaii

Low-Income Housing Tax Credits are the largest source of affordable housing financing in the U.S. In Hawaii, credits are allocated by HHFDC.

How LIHTC Works

  • Dollar-for-dollar federal tax credit over 10 years
  • 9% competitive credits for new construction
  • 4% credits paired with tax-exempt bonds
  • 15-year compliance period for affordable rents

Hawaii Allocator

Credits are allocated by HHFDC through their Qualified Allocation Plan (QAP), which outlines scoring criteria and priorities.

View HHFDC LIHTC Program
Investor Tips

Why Invest in Honolulu?

Extremely high Section 8 payment standards ($2,400 for 2-BR)

Rental Housing Revolving Fund provides below-market gap financing

GET exemption reduces construction costs on affordable projects

25 Opportunity Zones with appreciation potential tied to rail development

Finance Government-Incentivized Properties in Honolulu

FundNow Capital provides DSCR loans, bridge financing, and portfolio loans that complement government incentive programs in Honolulu.

DSCR Loans

Qualify using Section 8 rental income — government-backed rents strengthen your DSCR ratio.

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Bridge Loans

Short-term financing to acquire and stabilize properties before permanent LIHTC or agency financing.

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Portfolio Loans

Finance multiple properties in Honolulu's Opportunity Zones under a single loan structure.

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Frequently Asked Questions

Get Financing for Investment Properties in Honolulu

Tell us about your Honolulu investment plans. We'll match you with the best financing options within 24 hours.

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