Maui County Budget, Finance, and Economic Development Committee Meeting – August 18, 2026

The Budget, Finance, and Economic Development Committee (BFED) convened on Tuesday, August 18, 2026, at 9:05 a.m. via Microsoft Teams and in-person in Wailuku. The meeting focused on two agenda items: an update on the Community Development Block Grant – Disaster Recovery (CDBG-DR) funding and program status (BFED-20(17)), and a discussion on proposed countywide administrative rules for grant management (BFED-20(12)). No legislative action was taken on either item.

Public Comments & Testimony

• Jesse Law (testifying on both items): Expressed frustration with lack of public access to meeting information, read historical text about Hawaii-U.S. relations, and accused the Chair of violating the Sunshine Law. On the grant rules item, he recited state open-meeting statutes and urged the public not to vote for Chair Sugimura.
• James Langford (testifying on recovery funding): Stated he submitted approximately $2.4 billion in grants and sought clarity on the grant process, including how the county works with local experts. He requested better communication and involvement.

Discussion Items

Community Development Block Grant – Disaster Recovery (CDBG-DR) Update

• Presentation by John Smith (Office of Recovery) and BDO Government Services staff: Provided a comprehensive update on the $1.6 billion CDBG-DR grant from HUD. Key points:
  • $1.39 billion has been obligated; $239 million remains to be obligated.
  • Funds are allocated to single-family construction/reconstruction, first-time home buyer program ($92.5 million), multifamily rentals, public services, mitigation, administration (5% cap), and infrastructure.
  • Reimbursement process is efficient – average drawdown time to county is ~72 hours.
  • HUD visited Maui early; the county is leading other grantees nationwide in spending pace.
  • Key risks: escalating infrastructure costs and contractor capacity.
  • Housing progress: 577 units completed, 400 under construction, 597 in process – representing 81.5% of all units lost in the fire zone.
  • First-time home buyer program: 83 shopping letters issued out of 2,900 applicants; target is 120.
  • Multifamily rebuilds are scheduled through 2031; a timeline by project will be provided.
  • Interim housing plan: ~1,100 households temporarily housed; county will take over Kilohana site (167 units) from FEMA in February 2027; rental assistance programs are being developed.
  • Discussion on older homes (pre-1978) and lead-based paint waiver; HUD approved conditional waiver.
  • Question on using CDBG-DR funds for land trust homes: a path forward is being developed.
  • Chair Sugimura asked about action plan amendments – the $50 million Front Street buyout program and $100 million for the bypass project are already obligated.
• Councilmember Paltin requested detailed reports on reconstruction disqualification reasons, home purchases by location, and projected schedules for multifamily rebuilds.
• Councilmember Johnson asked about staffing capacity and using J-1 visas for engineers; Director Smith noted difficulty hiring engineers but overall staffing is adequate with consultants.
• Councilmember Rawlins-Fernandez asked about communication strategy for the housing transition – Director Smith acknowledged challenges and said the county is taking over lead role with improved internal/external communications.
• Councilmember U'u-Hodgins asked about contingency for rising construction costs and how the Office of Recovery adjusts for new disasters (referencing Tropical Storm Lala). Director Smith said they surge staff with MEMA for damage assessments and will seek additional federal help if a disaster declaration is made.

Administration and Management of Grants – Proposed Countywide Rules

• Presentation by Chief of Staff Lalo, Budget Director Milner, and First Deputy DeJardin: The draft administrative rules were transmitted to the committee on August 17, 2026. They cover general provisions, procedures (including fiscal sponsors), insurance, disbursement options (installment, reimbursement, advance), reporting, monitoring, and non-compliance. The rules are not retroactive. Timeline:
  • Council input due by August 25, 2026 at 5 p.m.
  • Notice of public hearing to be published in early September.
  • Public hearing scheduled for October 7, 2026 at the Velma McQueen Community Center.
  • Final certification by County Clerk after hearing.
• Discussion:
  • Councilmember Lee asked about application processing times – Director Milner said timelines are not in these rules but will be addressed in forthcoming standardization of application materials and evaluation criteria.
  • Councilmember Paltin asked if Corporation Counsel has signed off – First Deputy DeJardin said rules will not go to public hearing until approved as to form and legality.
  • Councilmember Batangan asked if all grant-making departments were consulted – yes, including Water Supply, OED, Finance, Human Concerns, Housing, Agriculture, Parks, Environmental Management. Transportation did not submit comments.
  • Councilmember Batangan asked about the Gold Division’s role – Director Milner clarified it will serve as a central knowledge repository without authority over department awards.
  • Councilmember Johnson asked about department handbooks – the intent is to develop a countywide handbook with minor department-specific amendments.
  • Councilmember Rawlins-Fernandez flagged that the definitions of nepotism and conflict of interest may need to align with forthcoming ethics legislation. First Deputy DeJardin acknowledged and said rules can be amended if needed.
  • Chair Sugimura raised concerns about nonprofit grantees not receiving timely payments (citing Kalima Omaui contract issue). Director Martin said they will follow up.
• No legislative action was taken; the item was deferred for continued discussion.

Key Outcomes

• No formal votes or decisions were made on either agenda item as both were Rule 7(B) discussions.
• The committee requested written responses from the Office of Recovery on multiple data requests (detailed housing numbers, reconstruction disqualification reasons, first-time home buyer statistics, project schedules, and breakdown of housing by owner-occupancy and affordability).
• Councilmembers were asked to submit comments on the draft grant administrative rules to Chief of Staff Lalo, Budget Director Milner, and First Deputy DeJardin by August 25, 2026.
• The public hearing on the grant rules is scheduled for October 7, 2026.
• The meeting adjourned at approximately 11:15 a.m.