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Lahaina Community Land Trust seeks additional insurance-gap funding, reports $15M acquisition progress
Summary
The Lahaina Community Land Trust reported acquisitions funded through a prior county allocation and asked for another $3.5 million in general-fund support to expand an insurance-gap program that pays the difference between insurance proceeds and rebuild costs in exchange for permanent affordability restrictions.
Autumn Ness, executive director of the Lahaina Community Land Trust (LCLT), briefed the committee on the nonprofits work to acquire and protect homes in Lahaina after the 2023 wildfires and requested additional county funding.
Ness said the land trust leveraged a prior $15 million package included in the current fiscal program to obtain multiple properties and set up an "insurance gap" program that helps owner-occupants remain in place by filling the difference between insurance proceeds and rebuild costs. Families that accept assistance grant permanent deed restrictions or easements that cap appreciation and require owner-occupancy; the land trust said this keeps homes affordable "forever" and prevents investor-driven resale.
Key requests and program design
- Prior funding use: LCLT reported that the $15 million allocation enabled property acquisitions where zoning and unit mixes aligned with permanent affordability goals; Ness said these acquisitions include parcels planned for 14 forever-affordable units.
- Insurance-gap pilot: The trust described a pilot that offers up to $300,000 per household (capped in the current pilot) to fill insurance deficits for homeowners who agree to deed restrictions and an appreciation cap (1.5% annual cap was referenced in discussion). Ness said the pilot targeted households above other program income limits (wide AMI band) and that the trust has leveraged private and philanthropic funding as recoverable grant capital to multiply the county contribution.
- New request: LCLT asked the committee to consider an additional $3.5 million in the general fund specifically to continue and expand the insurance-gap assistance for homeowners who would not otherwise qualify for other federal or CDBG programs (Ness highlighted firefighters, local business owners and residents with higher AMI but still cost-burdened). LCLT also welcomed a $3 million affordable-housing fund allocation the mayor proposed; Ness asked the council to consider a mix of acquisition and insurance-gap allocations so the trust can move swiftly.
Why it matters: the trust argues this combination of acquisition and insurance-gap grants can keep owner-occupied homes in local hands, accelerate rebuilds and limit investor-driven displacement. The program would require county funding and private philanthropic capital to be effective at scale.
Ending
Ness said LCLT is preparing additional paperwork to show how county funds are leveraged and asked the committee to consider the new request as part of the FY26 budget. Committee members asked for follow-up details on the number of families served and the relationship between the insurance-gap cap and other state or federal programs.
