The City and County of Honolulu’s Department of Land Management (DLM) is offering $5 million in funding through the Affordable Housing Fund (AHF) to support affordable rental housing development in Honolulu. The funding is intended to assist nonprofit organizations and public agencies in creating, rehabilitating, and expanding affordable rental housing options for low-income households. Specifically, eligible households must earn 60% or less of the Area Median Income (AMI), with priority given to projects that serve extremely low-income households earning 30% AMI or below, including individuals experiencing homelessness. This program aligns with the City’s strategy to increase affordable housing supply and transition individuals from emergency shelters to permanent housing.

The Affordable Housing Fund was established under Section 9-204 of the Revised Charter of the City and County of Honolulu and is further defined in Chapter 6, Article 63 of the Revised Ordinances of Honolulu. The fund supports land acquisition, development, construction, rehabilitation, and capital improvements for projects designed to serve low- and moderate-income residents. A key requirement for projects receiving funding is that they must maintain affordability for at least 60 years.

Eligible applicants include nonprofit organizations and public agencies. Eligible projects encompass development, construction, and rehabilitation of affordable rental housing, land acquisition for affordable housing purposes, and the development of Single Room Occupancy (SRO) housing. There is a funding cap of $55,000 per Affordable Housing Fund Qualified Unit. Projects will be evaluated for their alignment with the City’s goal of expanding affordable housing options for extremely low-income households and individuals transitioning out of homelessness.

The application process requires interested organizations to attend a pre-proposal conference scheduled for February 7, 2025, via WebEx. Applicants can submit clarification questions until February 20, 2025. The final proposal submission deadline is March 18, 2025, at 3:00 PM HST. Proposals must be submitted to the Office of the Division of Purchasing within the Department of Budget and Fiscal Services at City Hall. Full application details, including the complete Request for Grant Proposals (RGP-DLM-1859213), can be found on the HANDS website.

Applicants with questions should contact the Department of Budget and Fiscal Services, Division of Purchasing, via email at bfspurchasing@honolulu.gov. This funding opportunity represents a key element of Honolulu’s broader affordable housing and homelessness reduction strategy, aiming to foster innovative solutions that offer long-term, stable housing for residents in need.