Hundreds of people lined up yesterday to choose their lots in the new Kaupe'a subdivision in Kapolei, officials said.

The 250 lots parceled out yesterday are part of second and third phases of the 52-acre subdivision developed by the Department of Hawaiian Home Lands for Hawaiian families.

Many of the applicants qualified for their homestead leases after participating in a new financial education program, said Micah Kane, chairman of the Hawaiian Homes Commission.

"The Home Ownership Assistance Program, or HOAP, is beginning to qualify people who never thought they would be in a position to own their home," Kane said.

The program educates people on how to manage their finances and helps pre-qualify applicants for the home leases.

Construction for homes in the latest phase of the project began this summer and is expected to be completed in the first quarter of 2007, officials said. Construction on the third and final phase of the project will begin later this year.