April 19, 2022

Re: In strong support of Member Johnson’s budget priority funding initiatives that support individual homebuyers and renters AND a grant to Hale Mahaʻolu for homeowners and housing counseling program

Aloha kakahiaka kākou. Aloha e Luna Hoʻomalu Rawlins-Fernandez, Hope Luna Hoʻomalu Paltin, a me nā lālā hanohano o kēia komite,

ʻO au ʻo Keoni Kuoha. I serve as Director of the House Maui Initiative of the Hawaiʻi Community Foundation (HCF). I’m employeed by HCF to work with a variety of stakeholders to address the housing crisis in Maui County and enable access to affordable housing by our local residents. That’s why I’m here to lobby this committee today and provide testimony in strong support of Member Johnson’s budget priority funding initiatives that support individual homebuyers and renters and the grant to Hale Mahaʻolu for the homeowners and housing counseling program.

For this testimony, I will focus on the proposed IDA program. Since the last time I provided testimony to this committee, I have engaged our three HUD certified counseling agencies on Maui in order to draw a clearer picture of how an IDA program might be implemented to make the greatest impact. Here is some of what was shared with me.

First, the Financial Opportunity Center, Habitat for Humanity, and Hale Mahaʻolu are
all ready and excited by the possibility to open or expand IDA programs for their clients. And it has been explained to me that doing so with existing clients is easy and straight forward.

Second, let me share with you one example of a recent IDA program on-island funded through the Office of Hawaiian Affairs. The program provided a 4:1 match, where $4000 dollars match the participant’s savings of $1000. Once the total is saved, participants use the $5000 savings for a down payment, closing costs, OR first month’s rent and deposit. The majority of clients in this program reached their targeted savings goal within three months but no more than six months. The savings timeframe for most, if not all IDA programs is 12- to 24-months.

Given the timeframe within which savings targets can be met and that there are hundreds of clients currently being counseled by our HUD counseling agencies, my guestimate is that a $2 million dollar IDA grant could be easily expended with a year. I share this guestimate primarily to give this committee a sense of the demand for these grant monies. However, I also share it with you just in case, in the course of your budget work, you find extra funds and are looking for a program that could put those funds to good use.

Finally, after considering the range of insights that I have gathered from our three HUD counseling agencies, I have a suggestion for the consideration of this committee as you formulate your final decisions. Please consider granting the proposed funds with minimal restrictions attached. I believe we have an awesome opportunity here to work in a collaborative manner with the DHHC and the agencies that implement these programs and create an IDA program that meets the range of our community’s needs in as efficient and effective a manner as possible.

These programs get our local homebuyers and renters ready and qualified. They are a critical component to getting our local residents into affordable housing.

Mahalo to each of you for providing your leadership through the housing crisis that we are now facing. Mahalo i ka hoʻomanawanui ʻana mai. Thank you for your time and understanding.

Me ka mahalo nō,

Keoni J Kuoha
Director, House Maui Initiative
Hawaiʻi Community Foundation

Testimony received from BFED Committee.