Federal Home Loan Reform Offers Critical Relief for Molokai Veterans

By Cristina Johnson, Asbestos Ships Organization

Like residents in other regions, veterans in Molokai, Hawaii, have been facing a scarcity of affordable housing and a cost of living that far outpaces local incomes. 

With just roughly 600 veterans and limited mortgage relief options, even short-term hardship can push homeowners toward foreclosure. The now-expired Veterans Affairs Servicing Purchase (VASP) program temporarily helped about 20,000 struggling borrowers remain housed; however, the initiative offered no lasting protection. Fortunately, Congress has since authorized a permanent alternative through the new VA Home Loan Program Reform Act. But unless this is enforced without delay, veterans in Molokai and throughout the country risk losing homes in a market that is difficult to cope with.

The Escalating Toll of Housing Instability Among Molokai Veterans

Currently, Molokai is confronted with the reality of limited affordable housing, leaving many veterans highly vulnerable to housing instability. The median monthly mortgage for island homeowners now ranges from over $3,600 to $5,000—representing a significant portion of household income. And as not all veterans can manage these high payments, many are sadly pushed to the brink of foreclosure. 

The situation is even more dire for those already grappling with the long-term health effects of toxic exposures — including those related to per- and polyfluoroalkyl substances (PFAS), asbestos, Agent Orange, burn pit fumes, lead, mustard gas, Lewisites, and radiation. For veterans in these conditions, the combined burden of prolonged recovery as well as financial pressures due to mounting medical bills and missed income makes keeping up with housing costs extremely challenging, threatening the very stability they rightfully deserve. 

The New VA Home Loan Reform is a Critical Solution for Molokai Veterans

Amid the long fight against housing insecurity, Molokai’s veterans now have access to a tool designed to deliver lasting relief—the VA Home Loan Program Reform Act. Under this measure, the VA intends to assist veterans who have fallen behind on mortgage payments by covering the amount needed to bring their loans current. Equally important, the program seeks to preserve the original mortgage terms and interest rate by structuring the new aid as a subordinate, small loan that may not require repayment until the home is sold or refinanced. 

This approach provides veterans with financial breathing room — reducing the immediate risk of foreclosure and facilitating their recovery amid rising housing costs and financial strain. But the program cannot fulfill its promise until the implementation process is finalized. Also, there’s need for conducting comprehensive outreach to ensure eligible veterans are aware of their rights and have clear instructions on how to access assistance. On rural islands like Molokai, delays in enforcement could mean a vast difference between keeping a home and losing it — making urgent action essential to protect the security these individuals earned through their service.

About the Author: Cristina Johnson is a Navy veteran advocate for Asbestos Ships Organization, a nonprofit whose primary mission is to raise awareness and educate veterans about the dangers of asbestos exposure on Navy ships and assist them in navigating the VA claims process. Visit www.asbestos-ships.com for more information.