In 1993, a federal judge required that the state of Hawaii pay the Department of Hawaiian Home Lands a total of $600 million, or $30 million each year for 20 years, to settle breach-of-trust claims made against the state from 1959 to 1988. Over the last 19 years, the state of Hawaii made their $30 million payments each year to the DHHL. With just one year remaining until the state's obligation has been fulfilled the Department of Hawaiian Home Lands is scrambling to find a way to replace that $30 million income, which represents nearly 40 percent of their overall budget. If they are unable to find replacement income, the DHHL would have to make significant adjustments to their infrastructure to handle the shortfall.
According to state officials, the $30 million given by the state to the Department of Hawaiian Home Lands was the primary funding source for a department trust fund devoted to homestead development, infrastructure improvements, and repair and maintenance at existing subdivisions. When asked by state legislative representatives as to what they will do when the settlement runs out, Department of Hawaiian Home Land officials have just given vague responses that they will "improve DHHL operations," "increase performance of DHHL's financial assets," "encourage renovations/re investments in leased properties to increase revenue," "control costs," and "enhance revenue sources".
State Senator Clayton Hee, who is the vice chairman of the State Committee on Hawaiian Affairs, stated, "They don’t have an answer. That’s the problem. If people think the wheels are coming off the Department of Hawaiian Home Lands presently, there will be no wheels in 2015 because there will be no vehicle."
Source: Honolulu Star Advertiser, 9-3-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
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