Vicki Dunlap was sick of throwing money away on rent. So three years ago, she decided to put her Section 8 housing voucher to better use.

"I was just so tired of paying rent," she said.

Dunlap, who started receiving housing assistance vouchers in the 1980s, was one of the first participants in the city's Section 8 Homeownership program to close on a home and keep it.

She and 17 other low-income homebuyers, who purchased homes between 2003 and 2006 on O'ahu, were honored yesterday at the Mission Memorial Auditorium for sticking it out through the long process of home-buying and resolving to improve their financial situations.

Mayor Mufi Hannemann told the Section 8 homeowners they show others that buying a home is not just for the well-to-do, even in the Islands. "It is possible to buy your own home," he said. "But it's not going to be easy."

In addition to recognizing the homeowners, the event was aimed at raising awareness about the Section 8 Homeownership program.

The program was unveiled nationwide in 2000.

The city didn't start offering it to Section 8 families until four years later, while the state adopted the option in 2003. Since then, low-income residents have purchased homes in communities islandwide.

The homes purchased range in price from $110,000 to $268,000.

Gary Iwai, administrator of the city's Community Assistance Division, said participants in the program must be already receiving a Section 8 voucher and must be willing to attend financial literacy classes.

The process to buy a home takes about a year. Over the next two to three months, about five other Section 8 recipients are expected to become homeowners. "It is a difficult and challenging endeavor," Iwai said.

The city and state do not get any additional federal funds for the homeownership program, but applicants can apply for low-interest or no-interest loans from other agencies to cover a down payment.

The city administers about 3,800 Section 8 vouchers, and the state has more than 2,000 vouchers. Both the state and city waiting lists to get vouchers are closed, and there are no plans to reopen them.

Mike Flores, director of public housing in Hawai'i for the U.S. Department of Housing and Urban Development, said the state and city were initially hesitant to offer the program, reasoning that most homes were out of reach for low-income tenants.

Kaua'i County was the first to adopt the homeownership program in 2002, and saw success almost immediately, prompting others to follow.

But more recently, with the rising housing prices on Kaua'i and a dearth of affordable housing, progress has slowed. No Section 8 voucher holders on Kaua'i have been able to purchase a home this year, though several are in line for affordable units still under construction.

David Paz, a Honolulu Community College student, said he closed on an apartment in Wahiawa last December.

"I saw the increase in rents and I got so worried," said Paz, who is single. "If I didn't buy, where would I go?"

Reach Mary Vorsino at mvorsino@honoluluadvertiser.com.