Neighbors object to county plan to lease Makani Circle home to nonprofit; council removes property and delays vote

Neighbors and service providers clashed at a Hawaii County Finance Committee meeting on March 3 as dozens of Makani Circle residents urged the council to block the lease of 76 Makani Circle to a nonprofit for long‑term supportive housing.

Several residents described multi‑generational roots on the narrow loop and said they were not informed before the county purchased the house. "I didn't find out about this until Sunday when a flyer was left on my mom's door," said Lisa Kim Sue Kelly, who identified herself as the former owner of the house. "I was told no prisoners, no violent offenders," she said, adding she was told the property would be used for people with disabilities or kupuna. Other residents raised safety, parking and liability concerns and asked for inspections and records; Douglas Halstead, an attorney and neighbor, said he had filed records requests and could not yet obtain appraisal and repair documents.

Opposition speakers repeatedly cited the $809,000 purchase price and the proposed $10‑per‑year lease as evidence of a lack of transparency. "The county knows my address when they want some money, but they don't want to send me a notice to let me know about things like this," Bruce Tabor told the committee, describing how neighbors learned of the plan informally.

Supporters and housing advocates offered a counterpoint. Christina Pineda, who testified from Kona, said she had lived next to a Going Home Hawaii facility for nine years without incident and credited supportive housing with improving neighborhood safety. Ron Musch, chief program officer at Hale Kipa, described a separate youth transitional program the organization will operate and urged the council to preserve funding and housing options.

Housing staff said the homes were purchased with federal ERA2 emergency rental assistance funds that the U.S. Treasury later allowed to be used to acquire real property for long‑term affordable housing. The housing administrator told the committee the county had completed due diligence, appraisals and environmental reviews and had published an RFP to select nonprofit lessees. "We went through appraisal, phase‑1 environmental site assessment and inspections," the housing administrator said, adding the department had selected awardees through procurement and was ready to begin lease negotiations.

At the hearing, council members pressed for more documentation. Deputy corporation counsel Sylvia Wan and housing staff described restricted covenants and federal compliance for the purchases, and the housing administrator said one of the acquired homes had a leak and needed repairs. The administrator also told the committee staff had met with some neighbors and was willing to do more outreach.

Citing the intensity of testimony and gaps in community notice, Councilor [functional_label: Council member] moved to amend Resolution 475‑26 to remove 76 Makani Circle from the list of properties to be leased; the amendment passed on a roll call recorded by the clerk (9 in favor). Councilor Onishi then moved — and the committee approved — a postponement of the amended resolution to the March 17 committee hearing to allow additional community meetings, documentation and negotiation time (vote recorded: 9 in favor).

What happens next: the resolution remains in committee and the housing department will be asked to provide a memo describing funding sources, lease terms, tenant‑selection criteria, and the operational plans proposed by any nonprofit lessee before the March 17 hearing. The committee also asked that procurement exhibits and the RFP criteria be shared with council members to increase transparency.

Sources and attribution: statements in this article come from in‑person and Zoom testimony recorded in the March 3, 2026 Finance Committee meeting and from presentations by housing staff and corporation counsel during the public meeting.