DHHL tells council proposed $21 million MOU would support water projects; officials seek additional $11 million for transmission line

Kalani Franda, acting administrator of the Department of Hawaiian Homelands (DHHL) Land Development Division, told the Maui County Council that DHHL supports budget measure CR 25-26 and requested the council include a proposed memorandum of understanding allowing DHHL to receive $21 million from the county GET fund established under Maui County Code section 3.100.021.

"Included in this measure is a proposed memorandum of understanding that would allow DHHL to receive 21,000,000 from the DHHL GET fund as established under Maui County code section 3 dot 1 0 0 dot 0 2 1," Franda said, adding the funds are intended to advance water infrastructure needed to support homestead development in West Maui.

Franda said $10,000,000 is in the budget and the agency is seeking an additional $11,000,000, which the department described as funding for a 16‑inch transmission line from the Civic Center pump station to the Waihekuli tank and work to boost delivery from existing sources. Franda said the additional funds would help construct a transmission line and booster pumps to bring water to the Waihekuli tank — a component DHHL described as necessary to unlock housing opportunities for beneficiaries in Leiali‘i villages.

Council members pressed Franda on timing, project status and protections for homesteaders. Vice Chair Sugimura and Member Paulton asked whether the 11‑million request is part of the mayor’s initiative and whether conveyance and occupancy terms are secured. Franda said the MOU language to return the temporary leasehold to DHHL after five years has been added to a tri‑party agreement with HHFDC and DHS, is agreed to by legal counsel for the three parties, and is going through signatures.

Council Member Paulton raised concerns about the reservoir’s status and decommissioning history; Franda said she would follow up with specific details about any DLNR decommissioning references and clarified the funding request is for a tank adjacent to Kala'i Ola and not the decommissioned reservoir. Budget Director Lehi Milner later clarified to council that the tank referenced is below the reservoir and separate from any decommissioned structure.

Why it matters: DHHL told the council the money is intended to support water infrastructure tied to affordable housing for Native Hawaiian beneficiaries and long-standing commitments the department says predate the Lahaina fire recovery, and council members voiced concern about transparency and timelines before committing the additional funds.

Ending: Franda told members she would be available when the item is discussed and that the MOU and tri‑party addendum are in signature routing; council staff and members asked for follow-up documentation and clarifications ahead of further budget action.