DHHL approves $21 million MOU with Maui to fund Kaʻilaʻi Ola, other water projects; beneficiaries press for transfer assurances

The Hawaiian Homes Commission on Feb. 18 approved a memorandum of understanding (MOU) with the County of Maui to secure $21,000,000 from a Maui General Excise Tax fund set aside for Department of Hawaiian Home Lands (DHHL) projects.

The approved allocation directs $10,000,000 as DHHL’s contribution toward a tri‑party agreement that supports Kaʻilaʻi Ola water improvements, and $11,000,000 for an off‑site 16‑inch transmission line from the Civic Center pump station to the Vahikuli reservoir tank, the department said.

The money is intended to support water infrastructure needed for DHHL homestead development in West Maui and to improve system resilience for the county’s Department of Water Supply, department staff said. Kalani Franda, acting administrator of DHHL’s Land Development Division, told commissioners the funds “will directly support critical water infrastructure projects necessary for DHHL homestead development within the County of Maui.”

Why it matters: Reliable water systems are a precondition for building homestead lots. Commissioners and public testifiers said timely funding can speed projects that otherwise stall while waiting for well construction, permitting or other county work.

Public commenters — including beneficiaries from Maui homestead associations — spoke in favor but asked for firm written guarantees about future ownership of Kalaʻiola lands and housing constructed under post‑wildfire recovery programs. “I would like to make sure that the land and units that were built for the Lahaina wildfire survivors will be transferred to the Hawaiian Homes inventory after 5 years of use,” said Gracie Gomes of Hokala Hawaiian Homes. Similar testimony asked that any transfer timeline be documented and that the county expedite water connections for other DHHL projects on Maui.

Commissioners pressed department staff for the tri‑party agreement and for clarity about what happens after the county or other parties operate improvements. Commissioner Neves said he needed to review the tri‑party agreement before voting, noting the MOU allows a 60‑day opt‑out and that the tri‑party agreement contains terms about a five‑year transfer. Department staff responded that the MOU’s purpose is to secure release of county GET funds to be applied to the tri‑party package; the funds are county‑sourced and would not come from DHHL trust funds.

The commission voted to approve the MOU and delegated to the chair authority to implement the agreement, including coordinating with the County of Maui, the State Department of Budget & Finance, HHFDC and other stakeholders. No roll‑call vote tally was recorded in the public transcript; the chair called the motion carried after the voice vote.

What the MOU says and next steps: DHHL’s briefing lists four implementation elements: (1) approve the MOU with Maui; (2) allocate $21,000,000 from the DHHL GET fund as described ($10M tri‑party; $11M off‑site transmission line); (3) delegate authority to the chair to effectuate the agreement; and (4) require periodic updates to the commission on project progress and fund utilization. Commissioners requested the tri‑party agreement and related exhibits be circulated to the commission.

Stakeholder concerns: Testimony and commissioners repeatedly sought assurance that Kalaʻiola units built for Lahaina wildfire survivors would be transferred back to DHHL after five years and that the parcel itself be added to DHHL’s land inventory. Department staff said those transfer terms are addressed in the tri‑party agreement and pledged to provide the agreement and any related documents to commissioners.

What’s next: DHHL staff said they would provide the tri‑party agreement and continue coordinating with Maui County to secure fund release and move design and construction work forward. The commission’s approval allows DHHL to proceed to implement the MOU and begin utilization of the Maui GET funds toward the specified water projects.

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

Ending: Commissioners and members of the public framed the MOU as an opportunity to accelerate needed water work in West Maui, while urging written assurances about land inventory and post‑construction transfers in the tri‑party documentation.