SECOND OF 3 PARTS

ANAHOLA, Kauai »This is a story of beauty and blight, of two beachfront properties side by side along a picturesque stretch of the northeastern shore. One lot is vacant, littered with trash, abandoned cars and other bulky items tossed aside and forgotten long ago. Most of the structures are severely dilapidated, ruined by years of neglect. The rooms are mostly empty except for mounds of rubbish. A shed is on the verge of collapse, adding to the blight on the 5-acre parcel where Ana­hola Stream meets the Pacific.

On this recent workday the other 5-acre property was an impressive work in progress, a refreshing antidote to the adjacent eyesore. Once an overgrown haven for drug addicts, thieves and other shady characters, this parcel has been cleaned and cleared by volunteers and now sports high-end, tentlike structures with wicker furniture, comforter-covered beds and running showers. Several helpers were busy constructing a large bathroom facility, built modular style because they said no permanent structures were allowed.

The stark contrast between the two properties helps illustrate what is right and wrong with a Department of Hawaiian Home Lands program designed to lease idle, undeveloped land on a month-to-month basis.

The land rented through revocable permits generates revenue for the agency while putting tenants onto the land, where they are responsible for upkeep. Because the department has the authority to take the land back with just a month’s notice, it can keep the short-term permits in place until the land is needed for homestead development.

But because of a shortage of funds for such development, the permits have evolved into longer-term arrangements, and the program, which has no administrative rules, suffers from lax oversight and selective enforcement, a Star-Advertiser investigation found.

The effects can be seen on the parcel known as Camp Faith, which was rented by Lihue First Church for more than a quarter-century.

Though the beachfront lot is a prime piece of real estate, years of neglect have transformed it into a blight on the Hawaiian trust. Some beneficiaries are so pained by what remains that they refuse to go onto the property. Others have broken into tears as they walked along the piles of junk.

"This is a waste," said Ana­hola homesteader G. Frank Cummings Jr., 60, as he pointed to a section of the parcel littered with busted barbecues, broken surfboards and other discarded items. "Look at how these guys treated our land, the people’s land. This is where kids are supposed to be running around and having fun. Now look at it."

The Lihue church, which was paying $63 a month to use the land, vacated the property in August after DHHL terminated the rental agreement. The agency had received a written complaint from homesteaders and, after investigating, directed the church to vacate the property, citing the severely dilapidated structures and other problems.

The Rev. Gaylord Williams of Lihue First disputed DHHL’s characterization of the property’s condition. "When we turned it over to them, it was in good shape," Williams said. "They just let it go."

In response to Star-Advertiser questions, DHHL Deputy Director Darrell Young said in April that the agency was working to have the site secured and cleaned. But state procurement requirements and insufficient staff resources — DHHL has received no state general funds since fiscal year 2010 — limited the department’s ability to justify such a project, he said.

A stone’s throw away from the former church site is what is called Kumu Camp, a campground for youth and cultural groups. The project, still short of some finishing touches, last week welcomed its first users, 29 students from nearby Kanu­ika­pono Charter School.

The development has been carried mostly by volunteers and grants.

Leggs Yokotake, 56, was one of the volunteers who helped clear the land roughly two years ago. They found bags of stolen wallets and identification cards, numerous empty beer bottles and drug paraphernalia left behind by those who took shelter in the overgrowth. "It’s like this place has had a total face-lift," Yoko­take said.

Anahola homesteader Robin Danner, who heads the nonprofit running the camp, has butted heads with DHHL over issues related to the camp’s development. But Young said the agency would like to work with Danner’s group to resolve outstanding concerns, a sentiment Danner echoed.

Danner hopes the youth who come to the camp enjoy the serene environment. "If it gives them one day of peace, I’ll be happy," she said.