Kaka'ako's Newest Reserved Housing: Ulana Ward Village (Updated)
Updated: Nov 15, 2021
If you missed out on the other Ward Village Reserved Housing units, here is your last chance to snag one! This building is located in Kaka'ako within Ward Village, Ewa of Ward Avenue and surrounded by Pohukaina and Auahi. This affordable housing building for sale has requirements to be eligible and to qualify and also restrictions which we can go into later. This massive 41-story building will have close to 700 units ranging from studios, 1, 2 & 3 bedrooms where every unit comes with a parking stall. Here are a few more highlights on the building before diving into the requirements and restrictions...
Ulana Lawn & Pavilion
Ka La'i o Kukuluae'o Park
Bicycle & Surfboard Storage
"Living Rooms" which act as recreation rooms residents can reserve
BBQ Grills & Cabanas
Shared Lanai & Patio Areas
Resident Reception & Lobby Areas
Resident Parking (Floors 3-9)
Studio, 1, 2 & 3 Bedroom Units
Open Floor Plans
Luxury Vinyl Flooring & Carpet
Air Conditioners per unit
1 Parking (Studios/1-Bedrooms)
2 Parking (2 & 3 Bedrooms)
NO LANAIS / BALCONIES
Now let's talk numbers, when you say reserved housing or affordable housing, what does that mean? These units are located in a prime location, close to the ocean, parks, restaurants, shopping within walking distance and this developer is known for building luxury towers and their reserved units are still a very nice product.
With that said, they will of course try their best to maximize the highest price the state and city limits allow for. In my opinion, you do get a great product for the price when comparing these units to other comparable buildings. If you can afford these units or can get assistance from your family this will be a great starter home for you to begin building your wealth here in Hawaii. It is true that many won't qualify or get a good lottery number to secure one of these but keep in mind that this is just a small piece to Hawaii's real estate options. These reserved housing sales aren't the answer to Hawaii's affordable housing shortage, it's just one piece to the complicated puzzle we are trying to put together. In order for Hawaii to truly create homes that people can afford, it isn't always going to be a purchase, this is sad but true. Hopefully we can find a way to provide homes for a person's/family's lifetime to where they can use their home as if it's theirs without the added cost of Hawaii's exorbitant land prices. This is a passion of mine and making sure there is a home for everyone who lives here in Hawaii is not only a goal we strive for as a community but a human need that everyone deserves. #mytwocents
Studios - $271,000 to $355,400
1 Bedroom - $400,500 to $556,300
2 Bedroom - $504,100 to $650,300
3 Bedroom - $550,000 to $717,400
PRICING RELEASED!!! (UPDATED 11.14.21)
Decided to break it down from studio (yellow), 1 bedrooms (pink), 2 bedrooms (blue), 3 bedrooms (green). When you see different shades of color, the lightest shades will be 2 year buybacks, mid-shades are 5 year and darkest shades will be 10 year. Just an FYI, all studios are 10 year buybacks and I know this doesn't make sense to have the smallest units require you to live it it for the longest but it's based upon the price of the unit and its affordability at purchase. Keep in mind, you can sell prior to your buyback period but you do have rules to follow, it doesn't mean you can't get out of it, it will usually mean you could lose the majority of your equity in the unit. There are a lot of numbers listed and many of those are important numbers to know. Of course the "Base Price" is the purchase price, "Shared Equity" is the price you will pay back when selling/transferring title, "Est. Maint. Fee" is your Estimated Maintenance Fee for your unit and this is at $0.90/sf (including common area expenses and sewer but your water and electricity will be sub-metered and billed separately through the HOA). There is also the "Est. Monthly RPT" which stands for Estimated Monthly Real Property Tax amount. This number will be calculated into your loan payments as it is collected and paid together. If you are paying cash, this will be a separate bill you will need to remember to pay twice a year. The last column is "Restricted Period" which is the period you must be an owner occupant of the unit to meet their guidelines, your buyback period.
Are you eligible? Here is a list of requirements you must meet in order to apply:
U.S. Citizen or permanent resident alien
Resident of the State of Hawaii
At least 18 years of age
Buyer & Spouse do not have majority interest in a principal residence within the last 3 years
Will be an owner-occupant during the regulated period (details in restriction section)
Has never purchased reserved housing (exceptions apply)
All household members must provide income and asset verification
Income and assets must be under the Area Median Income (AMI) limits (140% AMI)
HCDA 2021 Reserved Housing Income Limits (Your 2020 Income/Taxes), Asset Limits and what units you can purchase depending on household numbers:
1 person - Income: $103,900 | Assets: $129,875 | Studio or 1 Bedroom
2 person - Income: $118,700 | Assets: $148,375 | Studio, 1 & 2 Bedroom
3 person - Income: $133,550 | Assets: $166,938 | 2 & 3 Bedroom
4 person - Income: $148,400 | Assets: $185,500 | 2 & 3 Bedroom
5 person - Income: $160,250 | Assets: $200,313 | 2 & 3 Bedroom
6 person - Income: $172,150 | Assets: $215,188 | 3 Bedroom
7 person - Income: $184,000 | Assets: $230,000 | 3 Bedroom
CLICK HERE to view full income limits for 2021
Restrictions on these Reserved Housing Units:
Last but not least are the restrictions you have on these units. You have owner-occupant restrictions where you need to live in the unit for a period of time. For this development it ranges from 2 years, 5 years or 10 years. The second restriction is also huge, the buyback provision. If you need to sell before your restricted owner-occupant 2, 5 or 10 years, HCDA has the first right to buyback the property at its original purchase price. If they decline, you can sell it at market value. Also, after your restricted owner-occupant timeframe you can sell it at market value on the open market. The restrictions/buyback periods have been released and you can see them listed on the price sheets we have released above.
The third restriction is Shared Equity. You need to payback HCDA for discounting your unit purchase price. This is the amount equivalent to the difference between the original appraised value of the unit and the reserved housing contract price. Therefore when you sell the unit you must pay that shared equity back from the proceeds of your sale or if it changes ownership the shared appreciation must be paid back in full at that time. You never have to pay the shared appreciation back if you decide to keep it in your name and never sell it. You can also rent it out after your owner-occupant term is up. This is a huge advantage compared to other affordable housing programs the state has like HHFDC. For a more detailed pamphlet on the Reserved Housing FAQ please CLICK HERE.
Did you want to setup an appointment to learn more on if you are eligible and qualify for Ulana Ward Village? Let us know, we can help! Ulana has already released their applications and you can download the application online (CLICK HERE) but to be honest, it's a lot of pages and I suggest setting up an appointment to go pick-up a packet they will have ready for you and printed out. If you decide to download it, you will fill out their online form and they will ask if you are working with a broker. I would suggest you choose your favorite Realtor so you have representation. Being represented by a buyer's agent is no cost to you but provides you with a real estate agent advocating for you during the entire purchase process of a new development. Let me know if you would like buyer's representation, we are here for you, I have helped many buyers through this process on other developments, managed an affordable housing project and have even assisted in selling these properties during and after the buyback periods. There is a lot to know when purchasing these type of homes and we are here to serve you!
Other Important Info (Updated):
Applications can be picked up until December 31, 2021
Application drop-off is between January 3 - February 13, 2022
Lottery is set for March 1, 2022
Unit selection and contracting starting March 5, 2022
Estimated closing in 2025
Deposit Schedule: $500 due at signing of a contract, 5% minus your $500 due 30 days after signing and another 5% due 120 after signing (total 10% down)
Here are the condo documents that have been released: CLICK HERE. You will also be able to see the parking stalls for each unit as well here.
See Full Ulana Brochure below...contact me with questions!