Disaster Recovery, International Affairs, and Planning Committee Meeting on Long-Term Recovery from the March 2026 Kona Low Storms (June 17, 2026)

The Maui County Council's Disaster Recovery, International Affairs, and Planning (DRIP) Committee met on June 17, 2026, to receive updates on long-term recovery operations from the March 2026 Kona Low storms. The meeting featured presentations from the U.S. Small Business Administration (SBA) and the Office of Recovery (OOR), followed by extensive committee discussion. No legislative action was taken.

Public Comments & Testimony

• No oral or written testimony was offered. The chair closed public testimony after a final call.

Discussion Items

1. SBA Disaster Assistance Update (Elizabeth Vargas)

• SBA offers disaster loans to homeowners, renters, businesses, and nonprofits of any size.
• Homeowners may borrow up to $500,000 to repair/replace their primary residence; renters and homeowners can borrow up to $100,000 for personal property.
• Businesses and nonprofits can borrow up to $2 million for physical damage and economic injury.
• Interest rates: 2.8% for homeowners/renters, 4% for businesses, 3.6% for nonprofit organizations.
• Repayment terms up to 30 years; no cost to apply, no prepayment penalty, and no obligation to accept a loan if approved.
• The deadline to apply for physical damage loans had an initial deadline of June 14, but a 60-day grace period extends it to August 13, 2026. Economic injury loan applications are open until January 2027.
• As of the meeting, SBA had approved over 170 loans totaling over $11 million. The majority were home loans.
• No payments are due for the first 12 months after the first disbursement.
• An additional 20% of verified losses may be available for mitigation measures.
• An SBA Disaster Loan Outreach Center is open in Kihei (1501 Liloa Drive, Monday-Friday 9am-6pm).

2. Office of Recovery (OOR) Presentation (John Smith)

• The Kona Low storm (March 10-24, 2026) caused widespread damage across Maui, Molokai, and Lanai.
• The county documented 92 damaged infrastructure sites, with total damage estimated at over $100 million. This adds to the existing $2.36 billion recovery need from the 2023 wildfires.
• FEMA declared disaster 4909.
• FEMA Funding and Timeline: OOR is streamlining the process. FEMA is moving to a faster reimbursement model (targeting under 2-3 years instead of 5-7), but this imposes tight deadlines. The county is ahead of schedule on recovery scoping meetings.
• Cost Share: FEMA reimbursement is typically 75% federal, 25% local.
• Eligibility Challenges: Parks facilities ("Category G") were specifically excluded from FEMA reimbursement. The state has appealed this exclusion. Exception: The damaged Paia gym was successfully reclassified from a park to a general building category to secure eligibility.
• Sediment Removal: Approximately 300,000 cubic yards of sediment is trapped in Kihei gulches. The county has applied for $20 million from the USDA NRCS Emergency Watershed Protection Program to remove it.
• Sinkholes: Major sinkholes occurred in Molokai (linked to a road construction project), Lahaina, and South Kihei Road. The South Kihei sinkhole was caused by a water main break during the storm. Repairs are being redesigned with stronger engineered solutions for resilience.
• Funding Strategy: The OOR is incorporating the Kona Low needs into the overall county funding strategy. Future budget amendments may be needed for the local match on FEMA projects in FY27 or FY28.

3. Councilmember Questions & Discussion

• Councilmember Rollins Fernandez (South Maui):

  • Expressed appreciation for in-person outreach on Molokai.
  • Asked about bonding for recovery costs and whether FEMA reimburses debt service. Budget Director Milner confirmed FEMA does not cover debt service. Chair suggested lobbying FEMA for this change.
  • Discussed the parks exemption appeal, noting Oahu has a stronger case which might benefit Maui.

• Councilmember Cook (South Maui):

  • Inquired about right-of-entry and liability issues for sediment removal on private property.
  • Discussed the challenge of documenting damage for FEMA reimbursement when cleanup happens quickly. OOR confirmed they use detailed before/after photos, truck logs, and cubic yard records.
  • Learned the South Kihei Road sinkhole was triggered by a water main break.
  • Asked how the county is building back more resiliently (larger culverts, engineered solutions).

• Councilmember Tenenti (Hana):

  • Expressed that Hana was impacted, though the damage map showed no blue dots in his district specifically.
  • Asked about competition for contractors, acknowledging the volume of work drives up costs.

• Councilmember Sugimura (Upcountry):

  • Sought details on the Paia gym. OOR explained it is likely a total loss, pending a structural engineer's report (expected in 60 days). Due to its historical status, reconstruction involves archaeological and accessibility reviews.
  • Stated the gym was moved from "parks" to "buildings" category for FEMA eligibility.
  • Advocated for Kula Hospital (a state facility), which is displaced. OOR stated they are advocating for it as a community resource but are not decision-makers.

• Councilmember Batongan:

  • Asked for a clearer distinction between roles in mitigation vs. resiliency. OOR said this work is in progress.
  • Clarified that there are no unrestricted block grants (e.g., CDBG-DR) for this event; all applied grants have specific scopes.
  • Discussed the process for the council to appropriate matching funds. Budget Director Milner noted matching funds could be through existing CIP projects or a future budget amendment for new needs.

• Councilmember Gabe Johnson:

  • Asked about plans for the upcoming El Nino season. OOR stated staff are gaining experience from the current disaster, which acts as workforce development. They are expanding office space and engaging earlier in the disaster cycle.
  • Proposed extending the factory-built home allowance (from the wildfire zone) to Kona Low-affected areas. OOR expressed openness to supporting such code changes.
  • Questioned placement of removed sediment. OOR explained it follows a county debris plan (landfill, ag properties) with careful analysis to prevent re-entry into gulches.

• Councilmember Charlie:

  • Specifically worried about Kula Hospital patients displaced to Oahu and the urgency of bringing them back.
  • Asked if SBA loans require a second mortgage. Ms. Vargas clarified yes, over $50k collateral is required, but lack of collateral won't cause a decline.
  • Confirmed renters do not need collateral.

Key Outcomes & Next Steps

• No legislative action was taken. The item was defrayed.
• SBA Deadline: The SBA encouraged residents to apply before the August 13, 2026 grace period deadline, emphasizing no obligation to accept the loan.
• FEMA Validation: OOR is actively validating the 92 damaged sites with FEMA and HI-EMA.
• Gym Study: The structural evaluation of the Paia gym will conclude in 60 days.
• Sediment Removal: A decision on the $20 million NRCS grant for Kihei gulches is expected soon. Follow-up letters were requested regarding HHFDC detention/retention basins above Waihee.
• Funding Requests: The administration will likely return to the council in FY27 for budget amendments to cover the local cost share of recovery projects.
• Disaster Preparedness: The administration emphasized the need to partner with council members to identify small district problems before they become large storm emergencies. They are also building networks with property managers to improve communication before events.