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DHHL to fund $1.5M of North Kona equipment in exchange for water credits to serve up to 200 DHHL homes in North Kona
Summary
The commission approved a memorandum of agreement under which DHHL will provide up to $1.5 million to the County of Hawaiʻi Department of Water Supply for pumps, motors and other equipment; in return DWS will provide water credits and water meters sufficient for up to 200 DHHL housing units in Layapua.
The Hawaiian Homes Commission on Feb. 18 approved a memorandum of agreement (MOA) with the County of Hawaiʻi Department of Water Supply (DWS) that will let DHHL allocate up to $1,500,000 to purchase critical mechanical equipment for the North Kona water system — and in exchange receive advance water credits and meters for up to 200 housing units in DHHL’s Laiopua development.
The department described the MOA as a cost‑effective way to accelerate housing development without waiting for new wells. Shareen Tam of the Office of the Chair presented the MOA and said DHHL’s investment would fund pumps, motors, cables, transformers and backup generators to improve redundancy and resiliency in North Kona. “In return, DWS shall provide advanced water credits and water meters sufficient to service up to 200 housing units within DHHL’s Villages of Laiopua,” Tam said.
Commissioners asked how the exchange would work. Shareen Tam and the Land Development team said DWS will purchase the equipment, submit receipts, and DHHL will reimburse up to $1.5 million; DWS will then allocate water credits and meters to DHHL. The arrangement is presented as an interim solution to secure water while new wells and longer‑term infrastructure are permitted and built.
Commissioner Freitas asked whether DHHL was getting a “good deal” for the $1.5 million investment. The DWS chief engineer for Hawaiʻi County, Keith Okamoto, who attended and offered to answer questions, responded bluntly in the hearing that “of course, DHHL is getting the better deal on that one,” reflecting that securing advance water credits is valuable for accelerating housing projects.
Why it matters: DHHL said water availability has long been a bottleneck to development in West Hawaiʻi. The MOA aims to speed delivery of up to 200 units in Laiopua by ensuring water capacity and meters are in place before construction and permitting of new sources is complete.
Implementation: The commission approved the MOA and delegated authority to the chair to finalize and execute the agreement. Department staff said DWS will own and install the equipment and submit receipts that DHHL will reimburse. DWS will provide the advance water credits and meters to service the agreed number of housing units.
Public testimony: Community members and beneficiary supporters praised the approach as a practical way to move housing forward while county water upgrades proceed.
Next steps: DHHL and the County Department of Water Supply will finalize the MOA documents and begin implementation steps; the chair will be authorized to sign and take actions necessary to implement the terms. The commission recorded the motion as carried following a voice vote; no roll‑call tally was provided in the transcript.
