Land Trust
The Ho‘omaluhia Community Land Trust (HCLT) is an innovative housing solution designed to make homeownership accessible to moderate-income families while ensuring long-term affordability. By separating land ownership from the homes built on it, HCLT reduces costs for homeowners and safeguards affordability for generations.
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In Hawaiian tradition, land (‘āina) is not a commodity but a cherished resource that we are meant to care for and pass on. HCLT embodies this belief by managing land responsibly for the benefit of current and future generations. Our community land trust model aligns with these values by ensuring the land is always in service to the people.
How it works
The HCLT purchases and holds land in trust, making homeownership affordable for families through 99-year renewable ground leases. This model allows families to own their homes, while HCLT retains ownership of the land, creating a more affordable homeownership option and ensuring long-term affordability.
Income Qualifications
To preserve affordability for Kaua’i residents, both initial buyers and any future inheritors must meet HCLT’s 120% AMI income qualifications.
Lease Payments
Homeowners pay an affordable monthly ground lease fee to the HCLT, which helps maintain the trust and community programs, making the model sustainable and homeownership accessible.
First Right of Refusal
When a homeowner decides to sell, HCLT has the first right to repurchase the home, helping to retain affordability within the community.
Resale Formula
If a homeowner chooses to sell, HCLT’s formula-based resale approach allows homeowners to gain value while keeping the home affordable for the next buyer. When selling, the new buyer must also be income-qualified. However, if a qualified buyer cannot be found within six months after the HCLT’s purchase option expires, the home may be sold to any buyer—regardless of income—at a price that does not exceed the then-applicable Purchase Option Price.
The formula starts with the original purchase price and allows the homeowner to earn a limited share of any increase in market value. This ensures each seller receives a fair return on their investment while keeping the home affordable for the next income-qualified buyer — preserving community benefit and affordability over time.
