Hawaii County’s Voluntary Housing Buyout Program for properties affected by the 2018 Kilauea eruption has moved into its third and final phase, focusing on eligible properties that are undeveloped or vacant.
The program already is processing more than 450 applications for primary and secondary residences, officials said, with the first five buyout properties acquired in June.
When the Phase 3 application period opened July 18, just over 200 undeveloped properties had registered in the program, seeking possible buyouts of up to $22,000.
The latest application period runs through Oct. 31, but applications for eligible primary and secondary homes and long-term rentals are still being accepted.
The Voluntary Housing Buyout Program was first announced in April 2021 in response to widespread losses from the 107-day Lower East Rift Zone eruption in Puna that destroyed or rendered uninhabitable 723 structures. Officials have estimated the disaster caused $296 million in home losses, plus $236.5 million in damage to public infrastructure.
The buyouts are being funded by $107 million in U.S. Department of Housing and Urban Development Community Development block grant funds for disaster recovery. The county Planning Department’s Disaster Recovery Division is administering the program.
In addition to providing financial relief to property owners, officials said the buyouts are meant to reduce development and potential future losses in known hazard areas. Properties acquired by the county will be managed as open space.
Nearly 85% of the HUD funds already were committed to the owners of primary and secondary homes who applied during the first two phases of the program, with an additional 10% of the funds to be used to cover administrative costs, the county said.
The remaining 5% is earmarked for undeveloped properties, but county disaster recovery officials say those funds could be reduced “significantly” if more owners of primary and secondary homes seek buyouts during the Phase 3 application period.
“Unfortunately, it’s likely we won’t be able to serve everyone that applies with the limited grant funds,” said Julie Leialoha, program manager for the Voluntary Housing Buyout Program, in a statement. She said eligible primary and secondary homes will be served first, and undeveloped properties “will be served based on the availability of remaining funds and ranked by program criteria.”
To help as many people as possible, maximum grant award amounts were established, with the $22,000 limit set for undeveloped properties and a $230,000 limit for primary and secondary residential property. Purchase offers are based on the 2017 pre-eruption, appraised market value by the county’s Real Property Tax Division.
Additionally, HUD requires at least 70% of buyout funds serve low- to moderate-income households.
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Buyout program
Find more information on Hawaii County’s Voluntary Housing Buyout Program, including a video breaking down the program and application process, at recovery.hawaiicounty.gov. For questions, call 808-961-8996 or email kilaueabuyout@hawaii county.gov.
