A state agency helping finance affordable housing development expects to make $27.7 million of low-interest loans available next year to developers seeking to build, fix, preserve or acquire low- to moderate-income rentals.

The state Housing and Community Development Corp. of Hawai'i will make applications available Nov. 1 to interested private and public developers. The money is expected to be distributed next year.

The financing is from a share of property conveyance taxes paid into the state's Rental Housing Trust Fund. The agency currently has $12.7 million in the fund not committed to projects. Another $15 million should be available for distribution later next year.

Distributions are scheduled to be made in two rounds. Applications for the first round are due Jan. 18, with awards estimated to follow in May or June. Applications for the second round are due June 20, with awards estimated to follow in October or November.

Awards are determined by the agency's board of directors.

A higher priority is given to projects that meet certain affordability guidelines and obtain tax credits or financing administered by the U.S. Department of Housing and Urban Development or Department of Agriculture Rural Development.

The affordability guidelines call for rental rates whereby all units are affordable to tenants earning no more than 100 percent of the area median income, with half affordable to renters earning up to 80 percent of the median income and 5 percent of units for renters earning up to 30 percent of the median income.

A lower priority is given to projects for renters with incomes below 140 percent of the area median income.

The agency's efforts play a significant part in combating the acute need for affordable housing in Hawai'i where housing costs are among the highest in the nation.

According to a legislative affordable-housing task force, an estimated demand exists for 44,190 new housing units statewide by 2009 — about half of which are for households earning less than $54,250, which is 80 percent of the annual median income for a family of four.

Hawai'i Housing Finance and Development has a plan to help deliver about 6,000 homes over the next five years.

Agency initiatives last year got a boost when the Legislature increased the share of conveyance taxes going into the rental trust fund from 30 percent to 50 percent for one year, which earlier this year was extended for one more year.

The conveyance tax distribution increase is projected to generate an additional $14 million going into the fund this year.

The Legislature this year also committed to a one-time $15 million infusion to the fund, which should supply the second funding round if there are enough qualified projects.

From previous funding awards, the agency has $48.5 million committed to nine projects, and is considering three other projects seeking $30.8 million in financing.

Since the rental housing fund's inception, about $110 million in awards have been awarded for projects with roughly 3,035 units.

Reach Andrew Gomes at agomes@honoluluadvertiser.com.