Where: Ele’ele, Kaua’i, Hawaii

Issue: Hawaii has among the highest percent- age of housing crowding in the nation

Outcome: An RCAC loan helped Kaua’i Habitat for Humanity to develop nearly 50 homes for low-income Ele’ele residents

In the fall of 1992, Hurricane ‘Iniki struck the Hawaiian island of Kaua’i, destroying more than 1,500 homes and severely damaging more than 5,000. On the southern and western shores of Kaua’i, many residents live in plantation communities where older houses have fallen into disrepair. These structures are often home to three generations of one family. U.S. Census data shows that Hawaii has among the highest percentage of crowding in the nation.

Following the hurricane, Habitat for Humanity (Habitat) formed a chapter on the island, with its goal to eliminate substandard housing. Since then, the group has overseen the construction of 117 affordable homes on Kaua’i. Many of the homes are constructed under the U. S. Department of Agriculture (USDA) Mutual Self-Help Housing Program by which low-income families construct their own and each other’s homes in exchange for an affordable mortgage. At one point, Habitat counted more than 2,000 Kaua’i families that wanted to participate in the program.

To help satisfy this need, Habitat applied for and received a $1,155,000 loan from RCAC to finish developing 48 home lots on a 24-acre parcel in the Ele’ele community. Thirty of the lots will be self-help homes and the remainder will be sold to low-income families. The loan also refinanced $700,000 of debt that relates to previous subdivision expenditures.

RCAC also provides technical assistance to Kaua’i Habitat as a Certified Loan Processor packaging 502 direct loans for lots that are not part of the self-help program. The Single Family Housing Direct Loan Program (Section

502 direct loans) provides subsidized mortgage loans for modest homes in rural areas. The applicants are generally first-time homebuyers.