In a potential partnership with local developers, former Lt. Gov. James "Duke" Aiona said Wednesday that he supports a new initiative that would enable renters to build equity toward down payments on home purchases.

Renters who agree to maintain properties in good condition, pay rent on time, and participate in homeownership and financial education would be able to build equity for generally up to 15 years. The money, which on a $1,500 monthly rent and a $500 developer maintenance fee could reach $74,550 over 15 years, could be used for down payments on homes.

Aiona, the Republican candidate for governor, announced the Home Ownership Personal Equity, or H.O.P.E, concept at a news conference at his Nimitz Highway campaign headquarters with developer Peter Savio and Jay Iranon of Swinerton Builders.

"It’s designed to educate these community owners to understand what it means to have a mortgage, what it means to build equity, what it means to be a homeowner," Aiona said. "And so, as such, the skin in the game is not only the rent and the equity they are building up, but also the knowledge that they now have so that they can take that next step."

Aiona said the idea would not require new legislation. But he said he might recommend tax breaks for renters or a streamlined approval process for rental-housing projects.

Under the new program, renters could withdraw the equity only for home purchases. The equity could be transferred within a family if a renter dies, but if a renter moves and leaves the program, the money would be shared with others who remain in the program.

"This is a program that helps that 20, 30 percent that really have no hope of ever buying," Savio said. "And what’s going to happen is you’re going to say, ‘Hey, you just pay your rent. And we’re going to set aside a portion of that rent as equity so you and your family can get into homeownership.’

"That hope is going to change people’s lives. It’s going to make a difference."

Aiona had previously announced a proposal to divert 25 percent of the money collected through the state’s corporate income tax to the rental housing trust fund to help expand the number of affordable rentals.

A dearth of affordable rental housing has been cited as one of the factors contributing to the state’s homeless problem.

State Sen. David Ige, the Democratic candidate for governor, has said he would leverage state funding to attract more private investment to affordable housing projects. He would also identify vacant and underused state lands for affordable housing near planned rail stations and other transportation and job centers. He would work with counties to speed up planning and construction approvals of rental housing projects.

Former Honolulu Mayor Mufi Hannemann, the Independent Party candidate, has recommended shifting oversight of development in Kakaako to the city — instead of the Hawaii Community Development Authority — in part because he maintains the city would better ensure affordable housing requirements.