OHA trustees approve $140,000 carryover for Mahiʻai micro fund after debate over grants vs. procurement route

OAH trustees voted to carry over $140,000 from fiscal year 2024 into fiscal year 2025 and to reallocate those funds from the grants program to the Strategy & Implementation (S&I) budget to establish a Mahiʻai micro fund to help Native Hawaiian farmers pay water bills and property taxes.

The committee approved the action after extended discussion about whether the award should remain in the grants program or be moved to S&I so staff could run a procurement-style request for proposals (RFP) with an estimated faster timeline.

Trustees said the money was originally approved by the board in May 2024 but had not been distributed. Administration and legal staff told trustees that the grants team estimated a 6–8 month timeline to implement the program through the usual grants (10/17) process, whereas procurement staff said an RFP would require a 32-day public posting and could result in a contract being executed by August if S&I handled it. Interim Corporation Counsel Everett Ota outlined legal limits on which entity types can receive grant funds under the grant statute.

"The RFP process typically takes 32 days of public posting," Justin (procurement) told the committee. Poni Eskew, director of economics and business resilience, said she estimated a contract could be executed by August if S&I used the RFP route. Kehau Puʻu, the chief operating officer, said she had found the grants route could take 6–8 months given current grants capacity but that she would support whatever the board directed.

Administration also told trustees it had identified three Native Community Development Financial Institutions (CDFIs) that meet current federal expectations for serving Native Hawaiian communities and could administer or distribute the micro fund: the Council for Native Hawaiian Advancement, Lei Hoʻolulu (listed in materials as "Lei ho'olaha"), and Hawaiian Lending and Investment. Staff noted that working through a CDFI or similar intermediary typically carries administrative costs (roughly 5–10% of the award, staff said) and may involve tax and eligibility implications depending on whether recipients are individuals, businesses or nonprofit organizations.

Trustees proposed and debated an amendment to keep the $140,000 in the grants program and assign S&I staff to support grants execution. That amendment failed on a 4–4 vote. The original motion to carry the funds over and reallocate them to S&I then passed.

Trustees and staff said they want the program in the field as quickly as possible so farmers receive relief; administration said it would proceed with the route chosen by the board and work to expedite procurement and contracting.

The committee did not finalize program rules at the meeting; staff said the RFP (if used) would include reporting requirements and data collection about how many farmers are served. Trustees asked that OHA acknowledgment and branding be included in any contracting scope so OHA’s role is visible in outreach and reporting.

The vote approved the carryover and reallocation; staff will return with procurement or contract documents and a proposed timetable for program execution.

Ending: Trustees stressed urgency for getting funds into the field and directed staff to move forward under the board’s decision so the micro fund could be advertised and executed as quickly as possible.