The Department of Hawaiian Home Lands is considering legislation to reduce its waitlist, which currently includes more than 28,000 Native Hawaiian beneficiaries.
Proposals boast everything from general excise tax exemptions for DHHL developments to allowing in-house historic preservation reviews of homeland projects.
DHHL has a list of 10 legislative proposals it says will help the agency move more people off the growing DHHL waitlist and into housing.
Adding seats for DHHL
Three measures propose to add a seat for DHHL on various state boards. These include the Commission on Water Resource Management, the Hawaiʻi Housing Finance and Development Corporation, and the Hawaiʻi Community Development Authority. DHHL Director Kali Watson said discussions are ongoing.
“You know there’s been a little bit of push-back,” Watson said. “Hopefully there is a compromise.”
Watson added that representation would allow for education and collaboration. He plans to meet with the HCDA later this week and the CWRM at the end of the month. Watson said a big concern among these boards is the number of seats and the impact of adding another seat to the board.
“Maybe instead of being a voting member, we can be an advisory type member. I’m okay with that,” Watson said. “As long as I get some input in the deliberation, I think I’ll be fine with that.”
DHHL has repeatedly sought representation on the state Water Commission since 2021. But previous legislative proposals have failed to gain traction among state lawmakers.
Hawaiʻi Island Rep. David Tarnas, chair of the House Judiciary and Hawaiian Affairs Committee, said it’s important for DHHL to have input on these boards. However, he encouraged DHHL to obtain buy-ins from these boards to ensure a successful legislative outcome.
Historic preservation
Another proposal would allow DHHL to handle historic preservation reviews in-house. This is a measure DHHL continuously proposed to lawmakers over the past three years with little support.
DHHL said allowing the department to review the impact of projects on historic properties or burial sites would help streamline construction. Reviews are typically handled by the state Historic Preservation Division, where they can take up to 165 days.
Tax exemptions
DHHL is also proposing its projects be excluded from school impact fees and general excise and use taxes. These measures could save the department millions, said DHHL’s Oriana Leao.
“Our estimates if this bill were approved and were applied to the $600 million that was allocated through Act 279 would come out to $24 million,” Leao said.
She said the savings resulting from the proposed exemption could then be used to develop additional housing and associated infrastructure. These legislative proposals are being reintroduced this year after failing to gain the support of lawmakers last session.
Legal counsel and loans
DHHL is also pursuing a measure to secure independent legal counsel for the Hawaiian Homes Commission and expand accessibility for beneficiaries under its Direct Loan Program.
As a state agency, DHHL currently obtains legal guidance from the state Attorney General’s Office. The department has argued for years that the state’s interests may at times be at odds with DHHL’s interest in carrying out its trust responsibilities under the 1921 Hawaiian Home Commission Act.
Under the proposal, legal counsel would still be provided by the AG when interests align. But if those interests are at odds, the department’s oversight body — the Hawaiian Homes Commission — would retain independent counsel paid for by the state.
The department is also seeking improvements to its Direct Loan Program with proposals to increase the loan limit and loan terms. With the higher cost of constructing or purchasing a home, increasing the loan limits from 50% to 75% of the maximum loan amount could allow beneficiaries to purchase or make improvements to their homes.
Increasing the allowable loan term to 40 years, instead of 30 years, will allow for lower monthly payment amounts for beneficiaries.
DHHL shared these proposals with members of the Act 279 Working Group Monday on the agency’s progress on spending the $600 million dollars received from legislators in 2022. The Working Group meets monthly to receive progress reports from DHHL staff with the goal of filing a report for lawmakers this coming session.
The department’s legislative package will also include a one-year extension for Act 279 expenditures, which currently ends in June 2024.
These draft legislative measures were approved by the Hawaiian Homes Commission in September 2023, and are currently under review by the governor for potential inclusion is the Administration’s legislative package for the 2024 session.
