Council hears plan to merge housing functions into new Department of Housing and Land Management, with $100M for acquisitions

The Committee on Budget heard details of a mayoral proposal to merge the Office of Housing into the Department of Land Management to form a Department of Housing and Land Management and to present a single budget for the new unit.

Executive Director Alger described the mayor’s message (MM03725) proposing the consolidation and said the merger would “bring together a team of housing and land acquisition professionals” to speed property transactions and affordable housing production.

The merger package presented as departmental communication D018425 would create a 47-position department, with salaries budgeted at about $3.9 million and current expenses near $8.1 million for total operating expenditures just north of $12 million. Alger said the proposal includes a $4 million request for Uniform Relocation Act relocation payments plus roughly $100,000 in subsidies for city-owned inventory, for a $4.1 million total related request.

Why it matters: Council members pressed department leaders on whether the new structure will unlock land and finance tools to speed affordable housing, how homelessness-related programs will coordinate with Department of Community Services, and how quickly the city can staff and deploy its inventory.

The administration said no net new positions are being requested as part of the merger; the total of 47 would come from existing Department of Land Management roles and transfers of positions from the Office of Housing, Department of Planning and Permitting and Department of Community Services. Alger said 16 positions would be filled as civil-service roles and 15 by personal-service contracts, and that the department currently shows 31 vacancies on paper but “actual vacancies” of 16 because of contract classifications. He told the committee he anticipates reducing DLM’s 11 current vacancies to seven by June 30, 2025, and to zero by June 30, 2026, through an “aggressive recruiting process.”

On revenue and capital: Alger said the department’s non‑housing rental and telecom revenues were about $531,288 in FY2025 and are projected at $407,700 for FY2026. He described a CIP item of about $392,000 from the Affordable Housing Fund for acquisitions and noted a separate $100 million line for affordable housing mixed‑use development in the six‑year CIP.

Finance tools and pipeline: Department staff described a strategy that mixes public land, private development financing and bond authority. Alger cited the city’s reclaimed share of the state private activity bond (PAB) cap — roughly $142 million — and said the share could support roughly 400 units; the department is tracking two PAB transactions, one near $30 million expected to close in April and another state‑sponsored transaction expected in July that would use a large portion of the cap. The administration said much of the eventual unit mix will be finance‑driven — for example, low‑income housing tax credit deals typically support units at or below 60 percent of area median income, while mixed‑income transactions could layer project‑based vouchers or Affordable Housing Fund dollars to reach lower AMI tiers.

City land inventory and near‑term pipeline: Alger reiterated a January briefing in which staff identified 10 underutilized city assets that, in preliminary estimates, could support roughly 1,900 units. He said five of those properties have already been issued under solicitations and the rest will be released before year‑end; the department expects solicitations to secure development partners and to move those sites toward production in 2027–2028. Several council members asked for TMKs and district information for the cited parcels.

Homelessness and interdepartmental roles: Vice Chair Weier and other members sought clarity on where wrap‑around supportive services will sit after the merger. Alger said social‑service delivery — outreach, shelter operations and supportive‑housing services — will remain with the Department of Community Services, while the new Department of Housing and Land Management will “help execute the transaction to get the property that they need.” He said the departments will continue joint work through the city’s Affordable Housing Working Group.

Grants, funds and charter issues: Council members urged a federal grants planner position be institutionalized in the new department; several asked the administration to activate or use existing funds more quickly, including the city’s Affordable Housing Fund (charter fund) and the Rental Housing Revolving Fund. Alger noted the Rental Housing Revolving Fund would require a charter amendment to broaden authorized uses (the fund currently allows payment of principal and interest only on GO bonds, not revenue bonds). He said staff are evaluating options to use that fund and other sources to backstop construction financing in city development proposals.

Clean Water and Natural Lands Fund: Members pressed the department to move faster on projects eligible under the Clean Water and Natural Lands Fund; council members and staff disagreed on the fund balance during discussion but agreed the fund — which supports watershed, conservation and public‑access projects — is substantial and largely unused. Deputy staff reported three projects under active consideration: Palawai, Makalii and Piko Ridge, plus Waikalua Fishpond; members asked the department to accelerate closings.

Timeline and next steps: Alger said the department will provide an organizational chart and requested TMKs, and will return to council with additional documentation. He also said a Uniform Relocation Act consultant selected through procurement is expected to start in mid‑March and that the Evollet Center acquisition and activation planning will be a multi‑year process that may involve temporary activation for homeless services before long‑term redevelopment.

Quotes from the meeting: “We need a lot more of it, and we need a lot more of it everywhere,” Executive Director Alger said of housing supply. “We anticipate a very aggressive recruiting process,” Alger added when asked about vacancies and hiring.

Ending: Council members said they want a clearer, prioritized pipeline and parcel list so the $100 million CIP allocation and other funds do not lapse unspent. The budget committee said it will send written requests for TMKs and additional budget clarifications and expects follow‑up briefings as the department finalizes solicitations and staffing.