Who Is Eligible to Apply for the Housing Lottery?
These are exciting times in the world of affordable housing on Maui! As construction begins at Hale Kaiola, we’re already looking forward to welcoming all the future residents of our new neighborhood in Kihei.
As promised, we’ll be holding the lottery later this year to give selected, eligible applicants the chance to become new homeowners. But what are the criteria that must be met in order to successfully apply? We’re glad you asked!
Be a lawful resident of Maui
First off, all eligible applicants must either be a legal citizen or permanent resident alien of the United States – and a resident of Maui County as well! For our purposes, a resident pretty much means what you’d think it does: someone that has established themselves on the island, by virtue of their status as an employee, student, retiree, spouse, or disabled person. Additionally, all successful applicants must be at least 18 years of age at the time of their application.
Have a gross family income which does not exceed 140% of the County’s area median income (AMI) as established by HUD
Recall from our last blog that AMI, or area median income, is established by the U.S. Department of Housing and Urban Development, or HUD, for every geographic area in the country. Currently, HUD has established Maui County’s AMI to be $95,900 per household (except for Hana, which is calculated differently).
It’s also worth noting that these figures are only reflective of a household’s total income, and not per individual within the household. In other words, if multiple adults are working in the home, or receiving retirement benefits, then all these income streams are combined for the household’s total gross family income that is applied.
Thus, eligible applicants for the housing lottery will need to have a total household income that does not exceed 140% of the area AMI – $134,260 – to be considered.
Have total assets that do not exceed 140% of the AMI
Like the above, applicants must not be in possession of total household assets – such as savings accounts, stocks, bonds, and other real estate holdings – totaling more than 140% of Maui’s AMI in order to apply. This helps to ensure fair and equitable access to our island residents that are in most need of affordable, sustainable housing.
Pre-qualify for a mortgage loan with the applicant’s choice of lender
Obtaining pre-qualification, or an estimate for your potential housing loan based on your financial information, is an important step in the process of home ownership. Getting pre-qualified doesn’t provide you with a guarantee of a loan; rather, think of it as gaining a better understanding how much you can afford to borrow in any potential, future mortgage loan.
If you’re feeling a bit confused around all the ins and outs of the homeownership process, don’t worry – you’re not alone. Thankfully getting help is now easier than ever, thanks to our friends at Hawaiian Community Assets! We’ve partnered with HCA to help low and moderate-income families realize their dreams of becoming homeowners, empowering them with the knowledge to make informed financial decisions.
You can fill out their intake form to get started and keep an eye out for an upcoming blog about our new partnership as well.
Aloha and a hui hou!