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Hawaii Island Community Development Corporation (HICDC)

Loan Fund Project Highlight

Where: Kapa'au, Hawaii

Need: Financing to convert former sugar cane fields into finished building lots for self-help homebuilders.

Solution: RCAC provided a land development loan of $1,876,876

HICDC has been developing affordable home ownership opportunities on the Big Island of Hawaii since 1986.  With operational funding coming from the USDA Rural Development Self-Help Housing Program, and family financing from the USDA Section 502 direct loan program, groups of eight to 10 low- and very-low income families work together to build each other’s homes. 

HICDC originally acquired 31 acres of a former sugar cane plantation with RCAC financing, which it decided to develop in phases. When the organization needed financing to develop the first 24 lots, it turned to the RCAC Loan Fund. 

RCAC provided a $1,876,876 loan to fully fund the land development cost and to provide financing until all of the lots could be sold to low-income homeowners. When new homeowners are ready to start construction, they close their new loans with USDA, and buy their lot, paying down a portion of the RCAC loan. 

With RCAC’s assistance, HICDC also will incorporate a number of sustainable methods and materials in the home construction, including solar orientation, glazing, dimensional planning, solar hot water, borate or ACQ treated wood, organic asphalt shingles or metal roofing and energy efficient lighting.

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