New solicitation offers up to $127 million in bond financing to preserve and strengthen Honolulu’s affordable rental housing

HONOLULU – The City and County of Honolulu Department of Housing and Land Management (DHLM) has issued a Request for Proposals (RFP) to support the acquisition and rehabilitation of existing multifamily rental housing properties on Oʻahu.

Through this solicitation, the City anticipates making available up to $127 million in Private Activity Bond (PAB) volume cap, providing qualified developers and property owners with an opportunity to pursue tax-exempt bond financing to acquire, rehabilitate, and preserve multifamily rental housing. The amount ultimately made available is subject to availability and may be adjusted, reduced, withdrawn, or reallocated by the City.

“Affordable housing is one of the most pressing challenges facing our island, and we have a responsibility to use every tool available to help our local families afford to live and build their futures here at home,” said Mayor Rick Blangiardi. “Private Activity Bonds are a powerful financial tool that allows us to leverage private-sector investment, strengthen partnerships and create more affordable housing opportunities for the people of Oʻahu. This is about more than financing housing projects. It is about providing stability for working families, giving our young people a reason to stay in Hawaiʻi and ensuring our longtime residents are not priced out of the communities they call home. Our administration is committed to turning these opportunities into real results, because the people of Oʻahu deserve nothing less.”

The RFP is open to qualified nonprofit and for-profit developers and property owners proposing the acquisition and rehabilitation of existing multifamily rental properties within the City and County of Honolulu. Eligible projects must contain at least four residential rental units and demonstrate a viable plan for acquisition, rehabilitation, financing, and long-term affordability. New construction projects, are not eligible, except for limited improvements permitted under the solicitation.

Project readiness is a primary consideration in the selection process. Applicants must demonstrate the ability to complete bond issuance, property acquisition, and related financing closings no later than December 31, 2027. Any conditional reservation of PAB volume cap remains subject to availability, applicable legal and program requirements, and final City approvals. A conditional reservation may be reduced, withdrawn, or reallocated if the project fails to satisfy required milestones or complete the applicable closings by the deadline.

Important Dates and Proposal Submission

• November 20, 2026: Deadline for the City to issue addenda.
• December 21, 2026, at 10 a.m. HST: Deadline to submit proposals and application fees.

Interested applicants are encouraged to review the full solicitation, including eligibility requirements, evaluation criteria, required attachments, and submission instructions.

Proposals must be submitted to:

Department of Housing and Land Management

650 South King Street, 3rd Floor

Honolulu, HI 96813

ATTN: Housing Finance Division

Email submissions will not be accepted. All questions regarding the solicitation must be submitted in writing to dhlmfinance@honolulu.gov. Prospective applicants should not contact individual DHLM staff members directly.

About Private Activity Bonds

In 2022, Mayor Rick Blangiardi’s administration revived the City’s Private Activity Bond program after more than two decades of inactivity, restoring an essential financing tool for affordable housing development.  PABS allow qualified developers to access tax exempt financing at lower interest rates which reduce overall development costs and improve the financial feasibility of projects.  

To date, the Blangiardi Administration, through the City’s affordable housing financing programs now administered by DHLM, has supported the development, rehabilitation, and preservation of more than 1,258 affordable rental housing units, representing over $407 million in PAB funding and financing commitments. This latest solicitation continues the administration’s efforts to leverage PAB financing, with a targeted focus on preserving and improving existing affordable rental housing.

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