DHHL outlines island development and repairs: Honoka‘a acquisition, Kapolei sewer, Molokai water and other projects

Kalani Franda, acting administrator for DHHL's Land Development Division, presented the department's FY2026 development budget and capital improvement project (CIP) priorities, listing projects and funding requests for Hawaii Island, Kauai, Molokai and Oʻahu.

Franda said the department has budgeted and requested funding for predevelopment reports, geotechnical studies and utility installations necessary to move projects toward award. For Honoka‘a on Hawaii Island, Franda said the department recently acquired property and is awaiting geotechnical reports and EIS work; a staff project manager reported geotechnical work is underway and that an environmental-impact statement may take about two years to complete.

Why it matters: many development items are contingent on technical reports, county acceptance of infrastructure or further state/federal approvals. Commissioners asked for clearer timelines and short summaries for each project to aid oversight and constituent inquiries.

Selected project highlights

Hawaii Island — Honoka‘a and Hawaii Community College partnership - Franda said a Hawaii Community College “home project” line item addresses added costs for utility installation to support a training or home-development partnership; another Honoka‘a line item will use trust funds for geotechnical and predevelopment work. Project managers said geotech reports were in progress and that the EIS process could take about two years before development proceeds.

Kauai - Franda noted a Kauai request of approximately $4,450,000 for geotechnical and fit-study reports to advance planned projects. Commissioners urged adding funding for Anahola farm-lot buildout and Anahola residential development, citing water-system subsidy reductions if more lots are developed.

Molokai - Franda and staff requested approximately $3,000,000 for water-system improvements (including replacement of an aging tank), $1,000,000 for drainage improvements related to previous flooding, and additional funds for Naʻīna and associated infrastructure to open 12–16 lots to wait-list beneficiaries.

Oʻahu — Kapolei sewer repairs and traffic calming - The budget lists $7,400,000 for Kapolei sewer repairs (part of an overall $20,000,000 CIP appropriation approved by the legislature) and $1,200,000 for island‑wide traffic-calming work in cooperation with the City & County of Honolulu Department of Facility Maintenance (DFM).

Other programmatic details

Franda said lot development work includes funding requests for individual-assistance providers (financial-capacity assessments and beneficiary supports) and $250,000 to underwrite orientation and lot-award events. He said the department plans to issue another several thousand project leases next year and cited activities to prepare scattered lots for award and to return deferred lots to inventory.

Commissioner requests and next steps

Commissioners asked staff to provide one-page summaries for each listed project (what is being asked, how much, and expected timeline) to improve public communication. Commissioners also asked staff to verify budget carryovers for projects that showed zero or no carryover in the workshop materials (for example, Waihīu Maʻu) and to refine cost estimates where off‑site work or donated materials (millings) could reduce costs.

Ending

Franda and project managers said many items are already in progress but contingent on completed studies, county coordination or longer permitting processes; commissioners requested written project summaries and clearer timeline estimates at the next meeting.