[{"_1":2,"_99":-5,"_100":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,75,87],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},"mediaId",6631397,"mediaKeyId","2679740-8fc6b13977932058e17cf4416a6f2f5d","parentId",2679740,"title","Committee seeks written explanations for lapsed affordable-housing funds, defers action","audioSeconds",369,"startMs",8232000,"endMs",8601000,"viewUrl","/Search/View?dp=1&key=2679740-8fc6b13977932058e17cf4416a6f2f5d&start=8232&end=8601","thumbnailUrl","https://assets.pipeline.soar.com/2679740-8fc6b13977932058e17cf4416a6f2f5d/thumbnail_8232000.jpg","articleUrl","/articles/6631397/Maui-County/Hawaii/Committee-seeks-written-explanations-for-lapsed-affordable-housing-funds-defers-action","mediaUrl","https://secure.pipeline.soar.com/6631397-a9d598af7c2f203c3c4e024d027928e5/orig.mp4?Expires=1771200468&Signature=LIRMG5I26qzckQNLZy6JNFjeTcwMA2VD0AI~JWkdkCbNK8PiYQJD8wT4VMScwhuZEG4Fo5ewedZpVg41rluxhEPUsyECc95aQ1qQlMZMZFHqSfHVxCm-~u9yLh0u-O6Nrnx6ONoJqdMv~7bGv~yOHP0cLfO8~nRD8SlbF7exA1qP7DSoD1I1q04spgg0F6IDx1ArMeMxKzKjMWK~tAC0Xe8HE7AMyHeMsX0aeA42ftp-~PAy3mnv4SI3Rp1P4JCEFqJxV0y6kLZ2Fso55iA2PDKdoZ5IMNgwc3XSc8ssypaS0T8i3aVjDHO-NVO44eFTiaFup68aQGnt9oZCATr9nA__&Key-Pair-Id=KUT5TJCACFTXG","author","Maui County","date","2025-03-18T00:00:00Z","article","Committee members raised questions on March 18 about funds listed in recent budget action (Bill 33 language) that were described as lapsing back to the affordable housing fund. Deputy Director Samalu Matafa told the committee he would provide written explanations of why specific project allocations were lapsed and whether the department had authority to reassign or cancel allocations.

Why it matters: Several projects named in the bill — including Haleʻō Laie (the former Haggai Institute) and projects on Lāna‘i and elsewhere such as Kuikahi Village — were listed as having unspent or lapsed allocations. Council members wanted clarity about whether those funds reverted automatically, whether the department could reassign them administratively, and whether any returned funds could be reallocated to other local projects.

What happened at the meeting
- Public testimony: none was offered for this agenda item.
- Department response: Deputy Director Matafa said he would supply written explanations for each listed project and respond to specific questions about the department’s statutory authority to lapse or cancel council-approved allocations. He also said he would provide a clearer written summary for the committee and that he would be available for follow-up in a future meeting if needed.
- Council follow-up items: Committee members asked the department to confirm whether line-item changes in the budget removed funds previously earmarked for named projects and to explain options for using lapsed dollars for other county housing needs, including whether the county could retain funds on Lāna‘i or reassign them to other Lanai projects (for example, to infrastructure elements such as a lift station).

Ending: The committee deferred decision and asked the department to provide written detail on the lapsed allocations, the legal/regulatory authority for lapsing or reassigning funds, and answers to member-specific questions about project-level reallocations.","mediaType","Video","parentTitle","Maui County - Budget, Finance, and Economic Development Committee (2025-2027) on 2025-03-18 9:00 AM - Mar 18, 2025","oneSentenceSummary","Council members asked the Department of Housing about several affordable-housing fund allocations listed in recent budget language as lapsed; the department offered to provide written explanations and the committee deferred action.","taxTitle","Maui County, Hawaii","taxId",12846,"location","headline","","shortSummary",{"_33":76,"_35":36,"_37":38,"_39":77,"_41":78,"_43":79,"_45":80,"_47":81,"_49":82,"_51":83,"_53":84,"_55":56,"_57":58,"_59":85,"_61":62,"_63":64,"_65":86,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6631401,"Council presses state and county on transition of Haleʻō Laie (Haggai Institute) from emergency shelter to permanent housing",697,5706000,6403000,"/Search/View?dp=1&key=2679740-8fc6b13977932058e17cf4416a6f2f5d&start=5706&end=6403","https://assets.pipeline.soar.com/2679740-8fc6b13977932058e17cf4416a6f2f5d/thumbnail_5706000.jpg","/articles/6631401/Maui-County/Hawaii/Council-presses-state-and-county-on-transition-of-Haleʻō-Laie-Haggai-Institute-from-emergency-shelter-to-permanent-housing","https://secure.pipeline.soar.com/6631401-09e759ba4f8e9b1ea02146607ac98478/orig.mp4?Expires=1771200468&Signature=jnletuK2rQhJifnSflhSsEt8FrHlau1nwnDcioKYDfKIUmDFTPBGX~TIKUsohCL2DHDHwRGvOo~Qaqc~gKgzz32gtn3hT17JxkJP4niaIGYyMw6bB3Aaxg1nUWrUcpY3TFTnIvsdV0V-TBFLkxRjPEMZUyLKH4cmwd5o7sM9VAdg7F2Flz8vfPIF-n2TYxBhBCpbTcqLB3P~oN7Zi9ioU8AE5~f5Kdmy-~1305saa~c4b6P70kRtTe742I24kAWgcMmcC-dZo0-xjhwxTQoJYDkGL~XHnYxESo~WmF6RAM9qQmooBqxkoGQG10IqRnxLJda4AhR6OAhX2GqwCZ4vMg__&Key-Pair-Id=KUT5TJCACFTXG","Maui County officials and the Hawaii Housing Finance & Development Corporation (HHFDC) updated the Budget, Finance & Economic Development Committee on March 18 about the status of Haleʻō Laie (previously called the Haggai Institute), a former hotel the state acquired to provide temporary housing after the August wildfires and which HHFDC ground-leased to the county for redevelopment as affordable workforce and teacher housing.

The site currently houses wildfire survivors under a state interim housing program. HHFDC and county representatives said about 50 occupants are using the site and that occupancy has constrained redevelopment work; the facility’s 78-unit capacity and roughly 30 currently vacant units were also discussed. The ground lease scheduled turnover to the county in May 2025, but HHFDC and the county said they are still negotiating details and that an extension of the May turnover date is under consideration.

Why it matters: The property was acquired by the State and ground-leased to Maui County with the stated intent to convert the site to long-term affordable and teacher housing and to include public pre-kindergarten classrooms. Survivors currently housed under a state program complicate the county’s ability to take possession and to stage the renovations needed to convert hotel rooms into permanent housing units with kitchens and other long-term features.

What officials said
- Grants and spend-down: Deputy Director Samalu Matafa (Department of Housing) told the committee the county executed a grant agreement with HHFDC for site improvements in the amount of about $1.565 million and that the county has drawn roughly $480,000 to date for projects including elevator modernization, pool-deck and bridge repairs, and skylight replacement. HHFDC staff said they expect to request reimbursement for additional capital and operating grant draws soon; an operating grant of $2 million remains to be spent down in forthcoming quarters.
- Occupancy and timeline: HHFDC and county officials said roughly 50 people are living on site now; the building’s stated capacity is 78 units. HHFDC’s Michael Yee said the parties are “in discussion with the county right now around this May 29th deadline to turn over,” and acknowledged movement toward an extension but no signed agreement yet.
- Housing configuration and fire code limits: Present-day units lack full kitchens; guests rely on a ground-floor community kitchen. County and HHFDC staff said the current unit layout and fire-code constraints would prevent simple, unit-by-unit installation of full kitchens; redevelopment requires a larger staging plan and likely unit combinations to create permanent dwelling units.
- Rent and program rules: Officials described the state interim housing rules in broad terms: the state’s program has not required rent for occupants during an initial interim period and the possibility of future rent collection (some remarks referenced anticipated rent schedules) complicates moving occupants into other available units. Deputy Director Matafa and HHFDC staff said rent collection and program timing are still being finalized; the committee was told rent collection was being anticipated to begin in early 2026 in some planning scenarios but no final decision was reported in the meeting.
- Alternative placements: Committee members asked whether vacancies at Kalaʻiloa (a separate state-operated housing project) could be used to relocate survivors while Haleʻō Laie is redeveloped. County and HHFDC officials said Kalaʻiloa is managed by the Department of Human Services and that any move would require coordination and decisions by the state program operator.

Committee questions and next steps
Council members pressed for specifics on unit counts, which improvements have been funded, and the timeline for turnover and rent policy. Chair Yuki Lehi Sugimura said the council approved the underlying lease and that the committee scheduled the item to resolve inconsistent expectations between the state and county about the May turnover and the survivor placements. Director Mitchell (Administration) and Deputy Director Matafa said negotiations are active and that three documents remain under review: an amendment to the ground lease, amendments to covenants/regulatory agreements, and an amendment to a memorandum of agreement.

The committee deferred action on the grant items and asked housing and HHFDC to return with concrete transition steps and a clarified timeline; no formal vote was taken.

Ending: Officials said they would continue negotiations with the governor’s office and HHFDC. Committee members asked staff to keep the council informed and to return with solutions for occupant relocations, schedule adjustments and redevelopment staging.","Committee members were briefed on grants and the May 2025 lease turnover for Haleʻō Laie, the former Haggai Institute property being used for wildfire survivor housing. County and state officials said negotiations are ongoing, survivors remain on site, and capital grants have been partially drawn.",{"_33":88,"_35":36,"_37":38,"_39":89,"_41":90,"_43":91,"_45":92,"_47":93,"_49":94,"_51":95,"_53":96,"_55":56,"_57":58,"_59":97,"_61":62,"_63":64,"_65":98,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6631406,"Maui council hears ERS and EUTF status updates as budget season approaches",1578,799000,2377000,"/Search/View?dp=1&key=2679740-8fc6b13977932058e17cf4416a6f2f5d&start=799&end=2377","https://assets.pipeline.soar.com/2679740-8fc6b13977932058e17cf4416a6f2f5d/thumbnail_799000.jpg","/articles/6631406/Maui-County/Hawaii/Maui-council-hears-ERS-and-EUTF-status-updates-as-budget-season-approaches","https://secure.pipeline.soar.com/6631406-b13201828c32de5c600ba190e0fbc1be/orig.mp4?Expires=1771200469&Signature=HyrCfzU0Z5kQHWlKLhLoYKPnKfrAdW95xlRea7WNYKpHeE5-~e6A3mF-CgoiFf9jpBly42yndn4dryqGbhVfpVDWnQHXjQHIU1OhtbCU0AqI~KWH5K-nxznYirbG~PQhGmWVsS6TU6is4PGnzocgPipiZ8ehtT04nGCEVCImq4JtDJ9lNd14L4u~PzBhxtk87OPHfZb7tGPKdKWWJxlZn2lpbmcJ1bFseWKym6CkxDl4-SWMUFNKFA7hrHK0trTgGKKy8g6-jd-p4EpT2BlGDa8r3sURHiiadklG1a4NHesxcs7tzt9FhYX7gbwKOZRWP3VAAI9p7mWVY2frODJgKg__&Key-Pair-Id=KUT5TJCACFTXG","Thomas Williams, executive director of the Employees' Retirement System of the State of Hawaii, and Derek Mizuno, administrator of the Hawaii Employer-Union Health Benefits Trust Fund, briefed the Maui County Council Budget, Finance & Economic Development Committee on March 18 about each fund’s finances and implications for the county’s upcoming budget.

The ERS presentation outlined membership and funding trends that Williams said make the system “a mature plan.” He said ERS is about 63% funded with an unfunded actuarial liability of roughly $14 billion and that, with current assumptions and contributions, the system is projected to reach full funding in about 22 years. Williams described a multi-year, multimillion-dollar pension administration system upgrade now under way and highlighted recent legislative changes that shorten maximum amortization periods and otherwise affect long-term funding. “This is a multiyear project ... it’s a multimillion dollar effort,” Williams said.

Why it matters: ERS contributions and changes to benefit rules directly affect county payroll costs and long-term liabilities the county must budget. Committee members were focused on how temporary hazard pay settlements, benefit “spiking,” and proposed benefit changes could alter the county’s required contributions.

Key ERS details presented
- Membership: roughly 58,000 active members statewide; about 6,900 active members and about 5,000 retirees reside in Maui County.
- Funded status and trajectory: the ERS reported a 63% funded ratio and an unfunded actuarial liability of approximately $14 billion; ERS staff said the program is on track to be fully funded in 22 years under current assumptions. Williams noted that ERS’s asset allocation is more defensive than in the past to reduce downside risk, which can cause short-term underperformance versus market benchmarks but reduce losses in severe downturns.
- Employer contributions: County employer contributions to the ERS were shown rising in the near term (roughly $66–68 million projected for fiscal-year 2025–26 in the presentation) before declining as unfunded liabilities are amortized. Williams described the effect of temporary hazard pay settlements on benefitable compensation and the plan’s liabilities.
- Pension spiking: staff provided a one-year spike cost example for Maui County — the county was charged about $6.8 million in fiscal year 2024 for excess pension-spiking costs; speakers clarified that those are annual costs for incidents that year, not cumulative amounts.
- Pending legislation: Williams summarized multiple bills affecting ERS (including administrative items and proposals to change vesting and benefit rules). He specifically referenced House Bill 1041 (noted in the briefing as aligning required minimum distribution language with IRS rules) and earlier acts that raised employer contribution rates (referred to in the presentation as Act 17) and a surcharge mechanism for excess spiking costs (Act 153). Williams said one bill to lower vesting for tier 2 employees from 10 to 5 years was estimated to have a small cost (presented as roughly 0.19% of payroll, shown as an approximate $273 million actuarial cost statewide).

EUTF briefing and county-level impact
Derek Mizuno described recent operations and plan changes in the EUTF. He told the committee the EUTF adopted a new benefits administration system in 2022 that supports employer self-service for enrollment and that Maui County staff have been early adopters of electronic transmissions for hires and changes. Mizuno said the HMSA HMO plan will be closed to new enrollees on July 1, 2025, and explained the board’s decision to close that specific HMO because it had become the highest-cost plan despite being an HMO. “The HMSA HMO plan, it is being closed to new enrollees,” Mizuno said.

Mizuno also described an EUTF board decision to extend coverage of dependent children in retiree plans to match active-plan ACA coverage through age 26 (effective July 1, 2025), and he said the change will add cost to the active plan — estimated at about $1.3 million systemwide — though other formulary changes to drug benefits offset much of that cost in the EUTF actuarial projections. He presented the county of Maui’s funded ratio within the EUTF account (about 87.8% in the July 1, 2024 valuation) and noted that Maui County has been contributing more than the actuarially required contribution (ARC), a practice that EUTF staff said will allow the county to reach full funding around 2028. Projected required contributions drop substantially after the unfunded liability is extinguished, the presentation showed.

Committee response and next steps
Committee members asked detailed questions about drop plans for police and fire, the mechanics and budgetary effects of employer prepayments, pension spiking drivers, and how the ERS and EUTF investment strategies seek to protect retirees during inflationary or recessionary periods. Williams and Mizuno said they would be available to answer follow-up questions and provide additional comparative projections; both presenters repeatedly noted that legislative activity could change plan costs and timelines.

The committee chair deferred formal action on the presentations and directed staff to use the information in preparing the county budget work sessions scheduled before the council’s budget hearings. No votes were taken on policy changes.

Ending: The ERS and EUTF updates will be used as reference materials during the council’s budget deliberations; committee members asked staff to follow up with additional requested analyses and for ERS/EUTF to return with further details if needed.","The county received annual briefings from the Employees' Retirement System (ERS) and the Hawaii Employer-Union Health Benefits Trust Fund (EUTF) covering funded ratios, liabilities, recent legislation and plan changes; committee deferred action pending budget review.","actionData","errors"]

Article not found

Committee seeks written explanations for lapsed affordable-housing funds, defers action

Council presses state and county on transition of Haleʻō Laie (Haggai Institute) from emergency shelter to permanent housing

Maui council hears ERS and EUTF status updates as budget season approaches