NOTICE OF FINDING OF NO SIGNFICANT IMPACT AND NOTICE OF INTENT TO REQUEST RELEASE OF FUNDS

NOTICE OF FINDING OF NO SIGNFICANT IMPACT AND

NOTICE OF INTENT TO REQUEST RELEASE OF FUNDS

August 23, 2024

Kali Watson, Chairperson

Department of Hawaiian Home Lands

P.O. Box 1879

Honolulu, Hawaiʻi 96805

808-620-9500

These notices shall satisfy two separate but related procedural requirements for activities to be undertaken by the Department of Hawaiian Home Lands (DHHL).

REQUEST FOR RELEASE OF FUNDS

On or about September 12, 2024, the DHHL will submit a request to The United States Department of Housing and Urban Development (HUD) for the release of Native Hawaiian Housing Block Grant funds under Title VIII-Housing Assistance for Native Hawaiians of the Native American Housing Assistance and Self Determination Act (NAHASDA ) of 1996, as amended, to undertake a project known as Puʻuhona Homestead for the purpose of providing people of native Hawaiian ancestry with housing financing and general home-ownership assistance. The State of Hawai'i is experiencing a housing shortage across all demographics, including DHHL beneficiaries. This housing shortage has been exacerbated on Maui as a result of the August 2023, Lahaina and Kula fires which resulted in destruction or damage to approximately 2,200 structures, many of which were residential. Currently, DHHL's applicant waitlist for residential homesteads includes 24,169 DHHL beneficiaries. The applicant waitlist for residential housing awards on just Maui is 3,989 as of July 1, 2024. This project would help contribute to a reduction of the growing DHHL beneficiary waitlist.

The proposed project is located on approximately 34.2 acres within parcels identified by TMK 2-3-5-044:001-093, 101-161 and 163-171. The project is located along Honapi'ilani Highway within Waikapū, Maui Island, Hawai'i. The project site is located mauka of Honoapi'ilani Highway, which borders the site to the east, and makai of the Old Waikapū Road, which borders the site to the northwest. Directly to the south and adjacent to the property is the existing Waiolani Mauka subdivision. Waikapū Gardens is located southeast of the site, across Honoapi'ilani Highway. Vacant agricultural lands are located immediately to the north and west of the property, with the Kehalani Project District located beyond to the north across Ku'ikahi Drive.

The proposed project includes the vertical construction of single-family residential units on 154 improved residential homestead parcels. The parcels are comprised of 130 turn-key single-family homes and 24 vacant lots. The parcels are approximately 7,500 square feet in area, with a minimum lot area of 6,000 sq. ft. The provision of vacant lots allows beneficiaries the flexibility to build a home not offered as part of the house-lot packages and within a beneficiary's budget. The project will be limited to homeowner financing to eligible families for vertical construction and does not include the construction, modifications, or maintenance of new or existing roadways, off-site infrastructure, nor infrastructure within the right of way, open space areas, or drainage easements outside of the homestead lots. As part of the improvements that are financed with the vertical construction, the project will include infrastructure laterals including, but not limited to water, wastewater, communication, and energy, within the homestead parcels necessary to connect them to the main infrastructure. The project will also include drainage, grubbing, grading, and trenching within the homestead parcels as necessary to prepare for house construction and to ensure adequate drainage of the lot. In addition, the project may also provide services such as homeowner assistance, which may include assistance with down payment and closing costs, mortgage, utilities, and insurance payments. The project may also provide housing counseling and rental assistance to beneficiaries. The HUD funding amount is expected to be $20,000,000.00.

FINDING OF NO SIGNIFICANT IMPACT

The DHHL has determined that the project will have no significant impact on the human environment. Therefore, an Environmental Impact Statement under the National Environmental Policy Act of 1969 (NEPA) is not required. Additional project information is contained in the Environmental Review Record (ERR) and will be posted on the HUD Exchange website. The ERR may be viewed and/or downloaded online at URL Link: https://www.hudexchange.info/programs/environmental-review/environmental-review-records/ or upon request via email and/or hard copy as necessary from Malia M. Cox, who may be contacted at (808)620-9500.

PUBLIC COMMENTS

Any individual, group, or agency may submit written comments on the ERR to the DHHL's consultant, Munekiyo Hiraga at [email protected]. All comments received by September 9, 2024, will be considered by the DHHL prior to authorizing submission of a request for release of funds. Comments should specify which Notice they are addressing.

ENVIRONMENTAL CERTIFICATION

The DHHL certifies to HUD that Kali Watson in his capacity as Chairperson consents to accept the jurisdiction of the Federal Courts if an action is brought to enforce responsibilities in relation to the environmental review process and that these responsibilities have been satisfied. HUD's approval of the certification satisfies its responsibilities under NEPA and related laws and authorities and allows the DHHL to use Program funds.

OBJECTIONS TO RELEASE OF FUNDS

HUD will accept objections to its release of funds and the DHHL's certification for a period of fifteen days following the anticipated submission date or its actual receipt of the request (whichever is later) only if they are on one of the following bases: (a) the certification was not executed by the Certifying Officer of the DHHL (b) the RE has omitted a step or failed to make a decision or finding required by HUD regulations at 24 CFR part 58; (c) the grant recipient or other participants in the development process have committed funds, incurred costs or undertaken activities not authorized by 24 CFR Part 58 before approval of a release of funds by HUD; or (d) another Federal agency acting pursuant to 40 CFR Part 1504 has submitted a written finding that the project is unsatisfactory from the standpoint of environmental quality. Objections must be prepared and submitted in accordance with the required procedures (24 CFR Part 58, Sec. 58.76) and shall be addressed to HUD Honolulu Field Office at 1003 Bishop Street, Suite 2100, Honolulu, Hawai'i 96813. Potential objectors should contact HUD/State to verify the actual last day of the objection period.

Kali Watson, Chairperson, DHHL

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