On Wednesday, the Department of Hawaiian Home Lands (DHHL) ceremonially broke ground on a $17 million project to install infrastructure for 161 lots, build 137 turnkey homes and make 24 vacant lots build-ready for Native Hawaiian beneficiaries in Waikapu, Maui. It’s the first project to be funded from the historic $600 million steered to DHHL to house Native Hawaiians, via Act 279 in 2022.
With Kali Watson, current and former DHHL director at the helm, the groundbreaking is just the first of multiple projects that will be pushed forward by this unprecedented appropriation. Watson says he’s confident that DHHL can “encumber” or officially commit all of this money — and ideally, much more, from federal infrastructure and other sources — within the legislative deadline imposed, by June 30, 2025.
Gov. Josh Green, Lt. Gov. Sylvia Luke and Maui legislators were at Watson’s side during the Maui groundbreaking, showing face to attest to their support for DHHL’s effort, as was Everett Dowling, president of the private company installing the infrastructure at Puunani Homestead. It’s an early affirmation that Green’s administration has a stake in the success of DHHL’s mission, and a reminder that the private sector, counties, state and federal interests must all coordinate efficiently to maximize results for long-suffering beneficiaries.
As DHHL head from 1995 to 1998, Watson steered the department during a time when it received another $600 million in a settlement with the state. The previous $600 million, however, was dribbled out to DHHL over 20 years, leaving it perpetually short on funding to provide homes for an ever-growing waitlist. In the end, Watson directed development of 3,000-plus residential lots on Hawaiian Home Lands during that term.
After leaving DHHL, Watson launched a nonprofit, private-sector affordable housing venture, the Hawaiian Community Development Board (HCDB), which has built 14 small-scale affordable housing projects across Hawaii, including in DHHL communities. HCDB’s innovation was to promote affordable rental housing fueled by low-income housing tax credits; with the assent of past DHHL chief William Aila, HCDB built the 48-unit Hale Makana O Nanakuli, opened in 2013. HCDB also coordinated with Kamehameha Schools (KS) to plan and build retail and medical offices, along with a KS-operated Hawaiian Cultural Center, at the Nanakuli Village Center.
It’s this background in bringing disparate sources of support and funding together from private and public, profit and nonprofit sectors that creates a sense of promise for DHHL’s future performance.
Still, Watson does not have universal support, and the public will have to see DHHL success soon to alleviate doubts.
Many Native Hawaiians themselves do not approve of rental housing as a DHHL mission; Watson himself acknowledges this, noting that a survey of beneficiaries shows the majority would prefer a standalone home on Hawaiian Home Lands acreage. DHHL will continue to build housing of this kind, as on Maui, along with forging ahead on rentals — including a high-rise project at the former Bowl-O-Drome site in Moiliili, where developer Stanford Carr won the bid issued by Watson’s predecessor, Aila, to build more than 250 units.
DHHL will leverage low-income housing tax credits and state rental housing revolving funds for the Moiliili project, a process familiar to both Carr and Watson.
It’s that very experience in development, in both nonprofit and for-profit endeavors, that raises concerns about Watson, ironically. Some of his detractors have questioned whether DHHL projects would benefit HCDB, although Watson stepped away when he was confirmed as DHHL director this spring. It’s now Watson’s responsibility — and DHHL’s — to ensure that no such conflicts of interest arise as the $600 million gets quickly encumbered over the next two years, and it’s appropriate that the public keep a careful watch on all progress.
