Condominium Association Loan Program

Program Overview

HGIA’s Condominium Association Loan Program and Loan Loss Reserve Program provides financing and credit enhancements to support AOAOs in completing essential maintenance and repair projects. The Programs assist AOAOs unable to obtain traditional financing to implement repairs that will reduce risk and improve insurability. Both the Loan Program and Loan Loss Reserve Program share the same borrower eligibility and allowable uses focused on fire safety, plumbing, roofing, and other risk‑reducing repairs and maintenance.

Program Timeline: Act 296, Session Laws of Hawaiʻi (SLH) 2025, was signed on July 7, 2025, enabling HGIA to develop direct financing and credit enhancements for qualified AOAOs. The Programs are undergoing the administrative rule‑making process and is anticipated to launch in Spring 2026.

New loan commitments using Act 296, SLH 2025 funds may be made through June 30, 2027, based on funding availability.

Eligible Borrowers

To qualify, a condominium association must:

  • Be located in the State of Hawaiʻi
  • Be an existing AOAO (not a new development)
  • Have received at least one adverse action letter declining loan approval from a traditional lender requested to address maintenance or insurance coverage issues
  • Commit to obtaining full replacement property and hurricane insurance once repairs are completed

Eligible Loan Purposes

Financing may support new loans or refinancing (with additional project funding) for essential repair work, including:

  1. Fire sprinkler or other fire‑safety system upgrades
  2. Pipe repair or replacement
  3. Roof repair or replacement
  4. Other maintenance or repairs that will reduce the risk profile of the condominium project

Financing Options

Direct Loans (HGIA)

  • Single‑loan structure: HGIA finances the entire project directly as the sole lender.
  • Two‑loan structure: A participating lender may provide a senior loan while HGIA offers a subordinate loan to fill the gap.
  • Please refer to Condo Association Loan Product Sheet for details. Please know that this Product Sheet is subject to change upon Governor’s final approval of the Administrative Rules.

Participation Loans (HGIA + Participating Lender)

A Community Development Financial Institution (CDFI) originates the loan, and HGIA purchases a portion of the loan to mitigate CDFI risk and improve CDFI loan feasibility.

Loan Loss Reserve (credit enhancement)

The Condominium Loan Loss Reserve Program will help CDFIs offer more loans to AOAOs by reducing lender risk. HGIA will contribute reserve funds to take first losses, increasing lender confidence and expanding access to financing.

How to Apply for Borrowers

  • Condominium Loan Program (Direct & Participation Loans): For direct financing, interested condominium associations should complete a Condo Association Loan Application and submit along with the requested documents and information on the checklist (top of the application form). Although we are accepting applications, please note that the Condo Loan program is subject to change upon completion of the Administrative Rules process.

Participating Lenders (CDFIs)

CDFIs may participate in the Direct Financing and/or Loan Loss Reserve Programs by executing a participation agreement with HGIA that sets reserve account terms and conditions.

Contact HGIA to learn more and apply as a Participating Lender.

This page summarizes proposed administrative rules for the Condominium Loan Program and Loan Loss Reserve Program. Final adopted rules may differ; HGIA will update program materials accordingly.