Commission reviews HB1800 and CIP allocations to advance homestead lot development
June 12, 2026 | Hawaiian Home Lands (DHHL), Department of, Executive , Hawaii
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Acting Land Development Division Administrator Colani Fonda walked commissioners through the FY27 capital-improvement and lot-development requests on June 12, identifying $24.2 million in HB1800 allocations, $20 million under an Act 250 biennium appropriation and additional trust-fund requests for due diligence and geotechnical work.
Fonda said Part A funding is focused on lot development and described HB1800 line items: $2.5 million for Nanakuli to prepare lots for award; $18.3 million to fill a shortfall for Honomu Phase 2 (subsistence-agriculture lots); $400,000 for Kokaha sewer needs; and $3 million toward Kanopepe Phase 2 gap financing for 82 lots. She stressed that these FY27 CIP requests are separate from Act 279 monies already encumbered for earlier projects.
The presentation also requested new trust-fund approvals for due diligence and geotechnical reports (examples: $400,000 for Maunaloa due diligence; $3.2 million for Honokaa studies) and smaller allocations for community-specific items such as homeowner-association payments. Fonda emphasized that several projects needed gap funding because construction bids came in higher than original estimates and noted that some infrastructure will require future agreements to transfer maintenance responsibilities to counties or the state Department of Transportation.
On repairs and operations, Fonda described Act 250 priorities (roughly $20 million) for homestead infrastructure remediation: sewer repairs, roadway and drainage improvements, wastewater treatment and drainage upgrades on multiple islands. He highlighted the department's aim to bring infrastructure to a standard that allows turnover to counties or DOT.
Why it matters: the CIP and HB1800 allocations are targeted to move stalled lot-development projects into construction, reduce backlog on encumbered Act 279 work and address aging homestead infrastructure. Commissioners asked staff for a prioritized project list for road and right-of-way improvements and whether some trust-fund requests (geotech vs. due diligence) were duplicative; staff confirmed geotechnical work is a form of due diligence.
Fonda closed by saying the FY27 CIP request will help get more beneficiaries onto homestead land and opened the floor to commissioner questions.
Fonda said Part A funding is focused on lot development and described HB1800 line items: $2.5 million for Nanakuli to prepare lots for award; $18.3 million to fill a shortfall for Honomu Phase 2 (subsistence-agriculture lots); $400,000 for Kokaha sewer needs; and $3 million toward Kanopepe Phase 2 gap financing for 82 lots. She stressed that these FY27 CIP requests are separate from Act 279 monies already encumbered for earlier projects.
The presentation also requested new trust-fund approvals for due diligence and geotechnical reports (examples: $400,000 for Maunaloa due diligence; $3.2 million for Honokaa studies) and smaller allocations for community-specific items such as homeowner-association payments. Fonda emphasized that several projects needed gap funding because construction bids came in higher than original estimates and noted that some infrastructure will require future agreements to transfer maintenance responsibilities to counties or the state Department of Transportation.
On repairs and operations, Fonda described Act 250 priorities (roughly $20 million) for homestead infrastructure remediation: sewer repairs, roadway and drainage improvements, wastewater treatment and drainage upgrades on multiple islands. He highlighted the department's aim to bring infrastructure to a standard that allows turnover to counties or DOT.
Why it matters: the CIP and HB1800 allocations are targeted to move stalled lot-development projects into construction, reduce backlog on encumbered Act 279 work and address aging homestead infrastructure. Commissioners asked staff for a prioritized project list for road and right-of-way improvements and whether some trust-fund requests (geotech vs. due diligence) were duplicative; staff confirmed geotechnical work is a form of due diligence.
Fonda closed by saying the FY27 CIP request will help get more beneficiaries onto homestead land and opened the floor to commissioner questions.
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