Investment supports homeownership for native Hawaiians on Hawaiian home lands
American Savings Bank (ASB) partnered with Hawaiʻi Community Lending (HCL) today to announce the bank’s $4.3 million investment in homeownership opportunities for native Hawaiians eligible to reside on Hawaiian home lands.
HCL, a nonprofit community development financial institution, will use $4M of ASB’s investment to offer interim construction loans requiring no down payment to native Hawaiians across the state. ASB’s investment comes at a time when the Department of Hawaiian Home Lands (DHHL), under the leadership of new director Kali Watson, plans to spend $600 million in state funds for housing.
In addition to the investment, ASB will provide a $365,000 grant to HCL to support operations of the construction loan fund. ASB leveraged a 2.6x match from the Federal Home Loan Bank of Des Moines under the Member Impact Fund, a $15 million initiative aimed to increase resources for affordable housing in Hawai‘i and other underserved states and territories.
“We mahalo ASB for their commitment to housing Hawaiians,” said HCL Executive Director Jeff Gilbreath. “This $4.3 million is just the beginning. It represents a down payment on what we believe will grow into the largest investment of private capital into housing Hawaiian home land beneficiaries since the creation of the trust lands more than 100 years ago.”
According to Gilbreath, nearly 800 native Hawaiians with paper leases under DHHL’s Undivided Interest Lessee Program are unable to build homes due to lack of affordable construction financing and infrastructure. With DHHL’s plan to use part of the $600 million allocation from the State for critical infrastructure needs, ASB’s investment in HCL will give native Hawaiians new capability to construct and own a home in Hawai‘i.
“We are committed to building on our efforts to expand access to affordable homeownership,” said Ann Teranishi, president and CEO at ASB. “It is our obligation and privilege to give back to the communities we serve. We are proud to partner with Hawai‘i Community Lending to create positive change for Hawai‘i.”
“This type of partnership does not happen overnight,” Gilbreath said. “It requires us to be upfront and clear with one another about our intentions. As we move forward, ASB and HCL continue to have many conversations about how to best support the community. I feel confident that we can provide interim construction loans to Hawaiian families who deserve them, and over time develop a larger, more extensive partnership that always puts community at the forefront.”
Native Hawaiian families in need of a construction loan on Hawaiian home lands are encouraged to sign up for HCL’s interest list so they can apply for a loan once funding becomes available. To join the interest list, call HCL at (808) 587-7656 or visit HawaiiCommunityLending.com/buy-a-home to complete the contact form.
About Hawaii Community Lending
Hawai‘i Community Lending (HCL) is the premier nonprofit mortgage lender for Native Hawaiians statewide. Founded in 2002 as a program of Hawaiian Community Assets, HCL is a trusted community partner with the expertise to identify ready homebuyers and provide them with downpayment assistance, construction financing, and affordable mortgages. HCL’s mission is to help solve the state’s housing crisis by making homeownership opportunities available to Hawaiian families—supporting them through financial education, low-interest loans and individualized plans for success. For homeowners who are facing foreclosure, HCL provides solutions to help them keep their homes. For more information, visit www.HawaiiCommunityLending.com
About American Savings Bank
American Savings Bank (ASB) has been serving Hawai‘i’s businesses and communities since 1925 and provides a full range of financial products and services, including business and consumer banking, home loans, insurance and investments. ASB is one of Hawai‘i’s leading financial institutions, with online banking services and branch locations throughout the state. ASB provides Hawai‘i’s consumers and businesses with more extended weekday and weekend hours than other similarly sized local banks, as well as convenient in-store locations. ASB matches its exceptional customer experience with an employee experience that has garnered local and national awards. For nearly a century, ASB has helped to build strong communities through its Seeds of Service program and donations to Hawai‘i’s nonprofits and community organizations. For more information, visit https://www.asbhawaii.com/ or follow American Savings Bank on Facebook, Instagram and LinkedIn.