DHHL reintroduces project leases and outlines large Oʻahu rollout; 665 project‑leases to be signed March 22

Department of Hawaiian Home Lands staff told the Hawaiian Homes Commission on Feb. 18 they will reintroduce an undivided interest lease program (now called the “project lease”) and use project leases to speed awards and design housing products that match beneficiary financial readiness.

Under the plan, DHHL will offer project leases to beneficiaries who express interest in a particular development area without requiring immediate financial qualification. The project lease secures an undivided interest in a designated area — not an individual lot — and gives a beneficiary priority in later lot selection once infrastructure and construction are underway. A project lease also allows an awardee to immediately designate a 25% successor to preserve family continuity.

Michelle Hitzman, Housing Project Branch manager, said the approach allows developers to assess demand and structure a capital stack that fits beneficiaries’ needs (for example turnkey homes, rent‑with‑option‑to‑purchase, self‑help/habitat, or vacant lot awards). DHHL will hold targeted technical workshops on loan products and the Rent With Option To Purchase program to help families prepare.

Timeline and scale: Kalani Franda and Michelle Hitzman said DHHL will run a major round of project‑lease awards in March and summer 2025. The department expects to sign roughly 665 project leases at a March 22 event at the Kroc Center; staff told the commission the broader 2025 program could result in approximately 2,500 lease awards across the year.

Notable Oʻahu projects described by staff included: - Kaʻulu Kahai (East Kapolei): increments B and C; increment C will include 115 turnkey homes and 12 Habitat/self‑help homes; Gentry Housing is a partner for construction and a March lot selection for remaining single‑family homes is planned. - Maunalua (Hawaii Kai): multi‑family site near the marina and retail, potential for roughly 80 units on about 2 acres. - Hale Moʻiliʻili (urban Honolulu): a mixed project adjacent to the stadium area with high‑rise and townhouse components (about 271 units in one design option presented). - Former Voice of America site (Waiʻalia): DHHL staff described planning for 250–350 single‑family turnkey and multifamily units adjacent to Uluʻēkūkui and the Kamehameha Schools Community Learning Center. - Scattered vacant lots across Oʻahu (15–20 lots ready to build) and the Yorktown building rehabilitation, which is expected to complete by June for transitional housing and supportive services.

Commissioners and public commenters welcomed the reintroduction, noting it could help households without immediate mortgage readiness. Commissioner Neves emphasized that revocable permits and short‑term uses are a stopgap and asked the department to continue moving toward long‑term dispositions where appropriate.

Why it matters: DHHL faces a long wait list and has prioritized multiple concurrent development tracks. The project‑lease offer aims to match product types to beneficiary readiness and accelerate awards while collectors of infrastructure, financing and construction are finalized.

Next steps: DHHL will proceed to outreach and the March 22 project‑lease signing event at the Kroc Center; staff will run lender/builders education events and targeted workshops on loan products. The department said it is also procuring master planning and continuing environmental and engineering work on several sites.

Speakers quoted in this article are taken verbatim from the meeting transcript and attributed to listed speakers.