The Hawaiian Homes Commission received an update Nov. 1 from Department of Hawaiian Home Lands planning and land-development staff on Lanai project planning, recent project-lease awards and statewide strategies to accelerate homebuilding.
Nancy McPherson, staff planner in the DHHL planning office, told commissioners that DHHL currently holds about 50 acres of Hawaiian home lands on Lanai (under 1% of the island) and that the department maintains a small island wait list of about 70 applicants. McPherson said all lots in phases 1 and 2A have lessees and that 16 additional project leases were awarded recently. She reported the department has received subdivision approval for two parcels — roughly 10 acres at the junction of Kamalapau and Moneli Road and about 15 acres near the airport — and said those parcels are in the process of being recorded at the Bureau of Conveyances before title-transfer discussions with Pulama Lanai proceed.
Kalani Franda, acting administrator of the DHHL land development division, framed the Lanai work in a statewide context, reiterating program urgency: DHHL has about 29,000 people on the statewide wait list and roughly 600 new applicants each year. Franda described the DHHL funding mix for infrastructure (state appropriations, federal grants, monetized tax credits and other sources) and said Act 279 funds — a statutory appropriation used for DHHL infrastructure — are on track to be fully encumbered by Dec. 31, 2025, with about $120 million spent to date on roughly 20 projects.
Franda said DHHL expects infrastructure dollars to unlock private developer financing — he estimated roughly $2 billion in developer capital that can be paired with DHHL-funded site infrastructure — and described delivery approaches intended to shorten build times and cut costs. Those approaches include modular and panelized construction, on-site prefabrication, factory-built systems (Franda cited a factory tour in Colorado used in post‑disaster recovery), and exploration of 3‑D printing. He said DHHL is working with unions and trades to adapt these methods for Hawaii while protecting local jobs.
On delivery models, Franda explained the department’s use of project leases and ‘‘rent with option to purchase’’ pathways. DHHL teams successful project-lessee applicants with service providers such as Hawaii Community Lending and Hawaii Community Assets for financial assessment, homebuyer counseling and contractor coordination. Franda said the change in approach is to “build to what beneficiaries can afford” rather than expect beneficiaries to qualify for completed product. He noted deadlines associated with low-income housing tax credit applications and said some Lanai projects are being structured with county partners to meet February submission timelines.
Staff projected vertical construction work for some projects to begin in mid‑2027 with hopes for 2028 at the latest, subject to permitting and funding. Franda also said DHHL is exploring monetization of roughly 2,300 affordable-housing tax credits and continuing discussions with counties, including Maui County’s general excise tax set‑aside that has generated about $22 million so far for Hawaiian homelands projects in Maui County.
Chair Watson asked commissioners and the community to help locate wait-listed beneficiaries who did not appear for awards, stressing the department’s intent to avoid missed opportunities for families. Watson also discussed options such as subsistence-ag lots and accessory dwelling units as ways to increase resilience and housing choices.
The department did not present a formal commission vote during the planning and project reports; staff said awards had been made and that next steps include recordation, title transfer discussions and regular outreach to beneficiaries as Phase 2B moves toward subdivision approval and site work.