The Maui County Council passed a first‑reading budget amendment on May 2 to recognize $500,000 in insurance proceeds for predevelopment planning of Komohana Hale Apartments, a multifamily housing project damaged in the August 2023 wildfires.

The funds will pay for consultant services to support planning and design work that the Department of Housing said is needed before construction can proceed. Deputy staff told the council the county received approximately $5.45 million in insurance proceeds related to Komohana Hale; the $500,000 item before the council is an initial tranche to fund predevelopment work, including planning, design and community input. The department said early conversations with Department of Environmental Management and the Department of Water Supply indicated initial support to transfer water and wastewater capacity to the Komohana site, which would allow the county to explore options for adding density on the parcel.

Housing staff said they can start procurement for a consultant immediately if the council recognizes the funds and approves first reading, with a goal of finishing planning and design in about six to nine months and returning for funding of construction in a later fiscal year; an earliest construction start was tentatively described as fiscal year 2027.

Councilmember questions focused on timeline, the potential to add density to Komohana Hale versus rebuilding in place, and the longer‑term disposition of the adjacent Lahaina Crossroads property. Housing said Lahaina Crossroads did not receive insurance proceeds because the county did not have insurance for that parcel; discussions with parks and other county departments about Lahaina Crossroads are still preliminary.

The council passed Bill 59 on first reading by vote: eight ayes, one member excused.

What’s next: Housing will pursue consultant procurement for planning and design; the department expects to return with additional budget requests for construction once planning is complete.