Housing Trust Fund (HTF)

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The National Housing Trust Fund Program (HTF) was created by Title I of the Housing and Economic Recovery Act of 2008, Section 1131 (Public Law 110-289). The purpose of the HTF is to provide grants to State governments to increase and preserve the supply of decent, safe, and sanitary affordable housing primarily for extremely low-income households (30% AMI), including homeless families.

The Hawaiʻi Housing Finance and Development Corporation (HHFDC) has been designated by the Governor as the HTF Grantee for the State of Hawaiʻi. Due to the state’s need and the HTF program’s focus on rental housing for extremely low-income households, HHFDC has limited the use of HTF funds for rental housing only. Eligible activities include: acquisition, new construction, reconstruction, or rehabilitation of non-luxury housing with suitable amenities.

Since 2016, HHFDC has received HTF funding in the amount of $3,000,000 each year. States may choose to fund projects through one or more subgrantees or may directly fund projects. A subgrantee is a unit of general local government (such as the counties) that has a consolidated plan which includes an HTF allocation plan. HHFDC allocates its HTF program funds in all counties, Hawaiʻi, Kauai, Maui, and the City and County of Honolulu, for the development or preservation of affordable rental housing for households with incomes at or below 30% AMI.

Application Process and Availability of Funds

In 2024, the County will receive an allocation of $2,987,591.00 in HTF funds.

2024 HTF Proposal applications closed on November 15, 2023.

See Sample 2024 HTF Application here

Tentative PY 2024 Action Plan Schedule which is subject to change.

2024 Public Notice

Find the final project selection in the 2024 Public Notice #3

Eligible Recipients

Eligible Recipients include:

An organization, agency, or other entity (including a public housing agency, or a for-profit entity or a nonprofit entity) that receives HTF assistance from a grantee as an owner or developer to carry out an HTF-assisted project.

Forms of Assistance

Eligible activities may be supported with the following forms of HTF assistance:

Equity Investments;
Interest bearing loans or advances;
Non-interest-bearing loans or advances;
Interest subsidies;
Deferred payment loans;
Grants; or
Other forms of assistance approved by HUD.

Eligible Costs

The applicant should consult the federal regulations 24 CFR 93.200-204 for guidance on eligible and prohibited activities.

The applicant should consult the federal regulations Sections 93.200 for the entire list of the eligible costs.

The major categories for the eligible costs are:

Development hard costs (new construction; rehabilitation);
Real Property Acquisition;
Related soft costs;
Operating cost assistance for rental housing;
Relocation Assistance;
Financing Costs;
Site Improvements;
Demolition;
Reasonable administrative and planning costs.

Prohibited Activities

The applicant should consult the federal regulations 93.204 for the entire list of ineligible costs.

HTF funds may not be used to:

Provide assistance to a project previously assisted with HTF funds during the period of affordability or for renewal of operating cost assistance of an operating cost reserve;
Pay for the acquisition of property owned by the grantee (state and county);
Pay delinquent taxes, fees, or charges on properties to be assisted with HTF funds;
Pay for political activities, advocacy, lobbying (whether directly or through other parties), counseling services (except for housing counseling), travel expenses (other than those eligible under 93.202(b)), or preparing or providing advice on tax returns;
Pay for administrative, outreach, or other costs to manage and operate the grantee of HTF funds, except those administrative costs listed in 93.202;
Pay for any cost that is not eligible under 93.201 and 93.202.

Eligible Activities

HTF funds may be used to provide incentives to develop and support the following:

Rental Housing – new construction, reconstruction, or rehabilitation of non-luxury rental housing with suitable amenities, including real property acquisition, site improvements, conversion, demolition, and other expenses, including financing costs, relocation expenses of any displaced persons, families, businesses, or organizations;
Land Acquisition – with respect to a particular housing project intended to provide affordable rental housing;
Purchase and/or Rehabilitation of Manufactured Housing – HTF funds may be used to purchase and/or rehabilitate a manufactured housing unit and purchase the land upon which a manufactured housing unit is located. HTF-assisted housing must be permanent housing.

Compliance with Applicable State and Federal Regulations

Recipients and sub-recipients selected to receive HTF funds for eligible projects will be required, if applicable, to certify, provide documentation and assure that it will comply with the following regulations, policies, guidelines, and requirements with respect to the acceptance and use of federal funds.

HTF Resources

Consolidated Plan and Annual Action Plan

Consolidated Plan

The County’s Consolidated Plan (Con Plan) is a five-year strategic plan that addresses the County’s housing and community development needs and Federal funding priorities. The Con Plan ensures that jurisdictions receiving federal assistance adequately utilizes and develops a plan for it housing and community development related needs of very low-, low-, and moderate-income families in a way that improves the availability and affordability of decent, safe and sanitary housing in a suitable living environment as well as expands economic opportunities.

In addition to serving as a strategic plan for the County’s priorities and objectives for its HUD programs, the Con Plan is also used as a decision-making tool for the County and to measure the County’s annual accomplishments of its Con Plan’s objectives by HUD. As such, projects seeking CDBG funding must be consistent with the Con Plan and address a priority housing or community development need as well as fulfill a housing or community development goal as outlined in the Con Plan.

The Con Plan was drafted with extensive community input through public hearings and consultation with the Hawaiʻi County Housing Agency, community organizations and government agencies, and by public survey and studies.

Annual Action Plan

The County is required to submit an Annual Action Plan (AAP) for HUD’s approval that serves as the County’s annual planning document. The AAP addresses the specific activities/projects the County will undertake during the program year to meet the Con Plan objectives with the anticipated annual CDBG fund allocation.

The activities/projects that the County proposes to finance in the AAP are selected in accordance with the County’s Project Evaluation and Rating System. This process involves the rating and ranking of each activity/project by an evaluation committee coordinated by the Office of Housing and Community Development. The evaluation committee submits its recommendation to the Mayor for approval and upon its approval, the AAP is drafted and made available for public comment. A Resolution to authorize the Mayor to enter into an agreement with HUD, along with the AAP with the approved activities/projects. is presented to the Hawaiʻi County Council for adoption. Upon adoption by the Council, the AAP is submitted to HUD for approval by the May 15th deadline.

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