Budget Finance Economic Development Committee Meeting on January 15, 2026

The Budget Finance Economic Development (BFED) Committee of the Maui County Council met on January 15, 2026, at 9:07 AM, chaired by Yuki Le Sugimura. The meeting covered three agenda items: a discussion on Bill 4 (amending FY26 budget to provide an additional $5 million to the Lahaina Community Land Trust), a discussion on Bill 3 (amending FY26 budget to recognize $2 million in insurance proceeds for the Komohana Hale Apartments rebuild), and a deferred item on carryover savings. Public testimony was heard on both bills.

Public Comments & Testimony

• Jesse Law (Kulauka Wakoa Hopua) testified on both items, expressing support and quoting Proverbs 24. He stated he was present to listen and learn for the Kanaka Maoli (full-blooded Hawaiian person).
• Caroline Waloa (Lahaina Community Land Trust) thanked the committee for its support, emphasizing the importance of keeping Lahaina's people and identity intact. She expressed full support for the work being done.
• Langford (testifier) expressed 100% support for the $5 million and offered software support. He praised the collaborative approach.
• Royal House of Hawaii and Lahaina (testifier) objected to any decision-making regarding land, claiming that all land is under royal patent and that descendants have not been consulted. They demanded that lands be returned to royal patent descendants, citing international law violations.

Discussion Items

Bill 4 – Amendment to FY26 Budget: Grant to Lahaina Community Land Trust (LCLT)

The committee discussed Bill 4, which proposes to:

• Recognize $5 million in estimated revenue from general fund carryover savings.
• Increase the Department of Housing grant to LCLT from $6 million to $11 million.
• Delete a $5 million grant condition tied to the Open Space, Natural Resources, Cultural Resources, and Scenic Views Preservation Fund.

Presentation by Autumn Ness, Executive Director of LCLT:

• LCLT has protected 19 parcels zoned for up to 45 units, with 13 titled properties, 2 planned-giving properties, 5 in escrow, and 8 families under construction. The total is 28–29 parcels protected in two years.
• The Keep Lahaina Home program (insurance gap funding) has leveraged $2.8 million of the $3.5 million allocated, with construction costs averaging $400 per square foot (below the CDBGDR estimate of $500).
• LCLT raised $9.4 million in private donations in calendar year 2025, plus $50,000 from the Kaluheo program (28 local business partners).
• A $5 million anonymous matching grant is pending.
• The need for speed is critical: some parcels are listed for less than 5–7 days, and disaster capitalists are poised to buy land after the upcoming settlement payouts. LCLT needs a cash reserve to compete.
• The managed retreat fund ($5 million) may not be used; LCLT is working with Hūʻao Pāʻa to help families apply for the ʻĀina Kapuna exemption, potentially allowing the funds to lapse.
• The transfer of 266 Dickinson Street from the county to LCLT is stalled due to paperwork issues.

Questions from Councilmembers:

• Councilmember Uʻi Hodgins asked about oversight and reconciliation of purchases. Deputy Director Samalu Mataava explained that reimbursement claims are reviewed against the grant scope; no claims have been rejected.
• Councilmember Rollins Fernandez asked about long-term sustainability. Ness replied that the front-loading will slow down as land is secured, and LCLT will shift to a stewardship organization. She noted that lessons learned include using external consultants and software (Public House, Home Keeper, Salesforce) to expedite work.
• Councilmember Johnson asked about the 266 Dickinson property and the CDBGDR (Hōʻokūmāho) program rules. Nes clarified that if a homeowner starts any construction (including planning/permitting), they may be disqualified from Hōʻokūmāho. Councilmember Paulton added that the federal government avoids mid-rebuild intervention.
• Councilmember Paulton asked about first-time homebuyer eligibility for LCLT homes. Mataava noted the Department of Housing has a separate first-time homebuyer program with a waitlist. A follow-up letter was requested to clarify CDBGDR first-time homebuyer opportunities.
• Councilmember Batangan asked about local families helped. Ness stated that more than half of LCLT purchases come from families who reach out before listing.
• Councilmember Senensi asked about leveraging county funds for private donations. Ness confirmed that the first county budget allocation helped attract other funders.
• Councilmember Senensi also asked about state tax exemptions and legislation. Ness mentioned a potential bill to add housing protection as a fifth component of conservation easements.
• Chair Lee asked about prevailing wages for volunteer labor (Habitat for Humanity, Mennonite Disaster Services). Corporation Counsel will provide a written answer.

Key Statistics:

• LCLT has recorded 20% of all real estate transactions in Lahaina since the fires (13 of 66 recorded transactions).
• The first eight families in the Keep Lahaina Home program represent over 1,500 collective years of residence in West Maui.
• Total county funding to LCLT in FY2024-25 was $15 million (plus $3.6 million private). In FY2025-26, $6 million is currently being spent down, with $2.8 million remaining.

Bill 3 – Amendment to FY26 Budget: Komohana Hale Apartments Rebuild

Bill 3 proposes to recognize $2 million in estimated revenues in the Housing Interim Financing and Buyback Revolving Fund and appropriate the funds for pre-development costs (site assessment) for the Komohana Hale Apartments rebuild. The insurance proceeds total $4.9 million, but only $2 million is being appropriated at this time.

Presentation by Budget Director Leslie Milner and Deputy Director of Finance Maria Zelinski:

• The insurance proceeds were recorded in the enterprise fund where the capital asset was held, consistent with GASB accounting standards.
• The fund is a proprietary fund with little activity, which is why it is not normally included in the budget.
• Additional research is needed on the historical background of the fund, established in 1979.

Questions from Councilmembers:

• Councilmember Paulton asked about insurance for other county-owned properties (Lahaina Crossroads, Kahaleakiola). Deputy Director Mataava stated that insurance is carried by the property manager (Hale Mahaolu) and that a follow-up letter to Risk Management will be sent to inquire about policies.
• Councilmember Paulton asked about the total insurance payout ($4.9 million) and why only $2 million is recognized. The remaining funds will be requested later as the design-build phase progresses.
• Councilmember Johnson asked about the wording “site work” vs. “construction.” The site assessment is a prerequisite for the design-build RFP.
• Chair Lee asked about the legal and accounting basis for depositing proceeds in the enterprise fund. Marcy Sato (Accounting System Administrator) explained that insurance proceeds for enterprise funds are recorded as offsets to capital assets per GASB.
• Councilmember Paulton noted that the revolving fund name is identical to another fund, causing confusion. The committee agreed to defer action until additional research clarifies the original intent.

Key Outcomes

• Bill 4 (LCLT Funding): The committee deferred the item to allow for follow-up letters on several questions: (1) status of 266 Dickinson transfer, (2) admin fee cap for the grant, (3) clarification on CDBGDR first-time homebuyer program, (4) overall housing unit production tracking, (5) prevailing wage requirements for volunteer labor. No vote was taken.
• Bill 3 (Komohana Hale): The committee deferred the item pending additional research on the legal basis for the fund and the confusion over the fund name. A follow-up letter will be sent to Risk Management regarding insurance policies for county-owned properties. No vote was taken.
• Carryover Savings Item (BFED-22): Deferred due to time constraints (Budget Director Leslie Milner had to leave).
• The committee will reconvene to consider passage on second and final reading for both bills on January 23, 2026.