FEMA plans to stop reimbursing the state for emergency housing in hotels after May 10 but the governor expects several hundred likely will be staying there through at least July 1.

After living in nine places since the Aug. 8 fire destroyed their Lahaina apartment, Josephine Fraser and Kdin Dias, their two toddlers and dog were all excited Tuesday afternoon to see their temporary new home in Kahului.

“Even though it is not in Lahaina, it will be nice to have a roof over our head — and a kitchen,” said Fraser, who is a restaurant worker in West Maui.

Next week, the family will move into the two-bedroom, one-bath modular home, becoming the first fire survivors to live in the $9 million development called Ke Ao Maluhia for up to five years.

The Ke Ao Maluhia at Maui Lani  has already begun to house Lahaina Fire victims. The first unit was presented to the Frasier (Sp?) family  taking possession during an afternoon ceremony that included Maui Mayor Richard Bissen, Governor Josh Green.  Other dignitaries representing individual groups that have supported the efforts since the days shortly after the August 8, 2023 fire were also in attendance Da.vid Croxford/Civil Beat/2024
The Ke Ao Maluhia at Maui Lani has begun to house Lahaina fire victims. The first unit was presented during an afternoon ceremony that included Maui Mayor Richard Bissen, Gov. Josh Green and other dignitaries. (David Croxford/Civil Beat/2024)

The 50-unit project — which is being paid for by the Hawaii Community Foundation’s Maui Strong Fund and being constructed on land the county acquired more than a decade ago in a settlement with a developer — is another piece of the complicated housing puzzle on Maui since the fires destroyed more than 2,100 structures and displaced 13,000 people.

It was the second stop Tuesday for Gov. Josh Green, Maui Mayor Richard Bissen and a large contingent of government officials, project partners and invited guests. The first was in the Leialii area of Lahaina for the groundbreaking and blessing of Ka Lai Ola, the state’s 450-unit group housing site for fire survivors who do not qualify for assistance from the Federal Emergency Management Agency.

“It’s difficult to keep it together when you don’t have a stable roof over your head,” Green said. That’s why he said the state, mayor and partners made a commitment months ago “to do all we can to build houses as fast as we can.”

The Ka LaÕi Ola area where houses will be built for Lahaina Maui Fire Victims was inaugurated today April 30, 2024 by Governor Josh Green accompanied by various other state and county Representatives. David Croxford/Civil Beat/2024
Gov. Josh Green was among the many dignitaries at the groundbreaking for Ka Lai Ola, a 450-unit group housing site in Lahaina for fire survivors who do not qualify for assistance from the Federal Emergency Management Agency. (David Croxford/Civil Beat/2024)

While progress is being made on these two projects — and on FEMA’s 169-unit group housing site in Lahaina that is expected to break ground within days — it will not be fast enough to meet the state’s July 1 deadline for people to vacate pricey hotels that were set up as emergency shelters following the fires.

As of Monday, 1,830 fire survivors in 725 households and their 159 pets were still housed in the hotel program run by the American Red Cross at a cost of about $56 million a month, Green said. That’s down 76% since the program’s peak, when 3,017 households were living in hotels.

On May 10, unless there is another deadline extension, FEMA will end its reimbursement for federally eligible people in this program, leaving the state to pick up the tab.

The state and FEMA disagree about how many of the remaining 725 households are eligible for FEMA assistance. FEMA has the number at about 135, while the state believes it should be about 400, Green said.

With the group housing sites months away from being ready at best, officials are continuing to try and place people in homes made available through FEMA’s direct-lease program.

As of Monday, 835 households had moved into them, but 500 secured properties remain vacant, said Curtis Brown, FEMA’s deputy federal coordinating officer. Fire survivors have turned down units for being too far away from West Maui where they live and work.

Group housing sites for fire survivors are planned for the land behind the Wahikuli subdivision in Lahaina. (Nathan Eagle/Civil Beat/2024)
Group housing sites to be developed by the state and federal government for fire survivors are planned for the land behind the Wahikuli subdivision in Lahaina. (Nathan Eagle/Civil Beat/2024)

Spearheaded by the Council for Native Hawaiian Advancement, Ke Ao Maluhia is the farthest along among the temporary housing projects, with the first phase of 34 homes scheduled to be complete in June, and an additional 16 homes expected to be ready for residents in July. Monthly rent will be $2,500, including water, sewer and trash collection.

The first 270 units of phase 1 of the state’s group site will not be done until sometime in August and FEMA’s group site, which is being built next to the state’s complex, is not slated for people to move into until about October.

Green said starting Wednesday, fire survivors will be able to temporarily move into the 175 units at the Haggai International Institute’s Mid-Pacific Center, formerly the Maui Sun Hotel, in Kihei. The state’s Hawaii Housing Finance and Development Corp. recently purchased the South Maui property.

There is also the 88-unit Ohana Hope Village in Kahului that was quickly put up by a nonprofit and can house up to 500 people displaced by the fires. It has been held up with permitting issues and other snags.

“I have to go take a look to make sure there’s enough water,” Green said when asked about the project. “But I’ll look at it again. I’d rather see us err on the side of housing people.”

But even with these options and others, Green said he expects about 500 people will still be in hotels on July 1. He said it is his intention to “continue to make extensions wherever it’s necessary to keep people housed. It’s just fewer and fewer and fewer, thank goodness.”

Green also said the state will need to negotiate deals with the hotels and be mindful of taxpayer dollars.

Ka Lai Ola’s price tag is $115 million, with the Maui Strong Fund contributing $40 million to cut the cost for the state to $75 million.

“I would spend that kind of money in a couple of months if people didn’t leave the hotels,” Green said. “So it’s important. It took time. There was no way to build immediately, and there was not even any way to import trailers and so on, even though I’m against them.”

The Ka LaÕi Ola area where houses will be built for Lahaina Maui Fire Victims was inaugurated today April 30, 2024 by Governor Josh Green accompanied by various other state and county Representatives. David Croxford/Civil Beat/2024
Kimo Carvalho, left, executive director of HomeAid Hawaii, talks about the 450-unit housing project at a press conference Tuesday with Gov. Josh Green at the state-owned property in Lahaina. (David Croxford/Civil Beat/2024)

While it has been nearly nine months since the fires, the 450-unit project did not begin until about six months ago. Since then, many aspects of permitting and infrastructure have been expedited on the project, said Kimo Carvalho, executive director of HomeAid Hawaii, which builds homes for people at risk of homelessness and is heading up the state’s project.

“We’re truly building a plane and flying at the same time,” he said.

Ka Lai Ola, which means “The Place of Peaceful Recovery,” will provide child care, health care, financial planning and trauma support for its residents.

“It will house some of our most vulnerable populations,” Green said. “We have to make sure everyone gets a home.”

The FEMA project called Kilohana, which means lookout point, is for FEMA-eligible people who were not able to utilize FEMA rental assistance or get matched with a direct lease for various reasons, including not passing a background check.

This complex will have 101 one-bedroom units, 51 two-bedroom units, and 17 three-bedroom units.

The Army Corps of Engineers designed the complex and is overseeing site preparations. The Corps awarded Dawson Aktarius LLC, doing business as Dawson AKT of Honolulu, a $47 million contract to grade the parcel, install electricity and water and sewer lines and build the streets.

FEMA said its deadline to receive bids to supply modular homes for its site ended and it is now evaluating them, with three to four companies likely to be chosen. The state already has selected four companies to supply units for its first phase.

Artist rendition of Ka La'i Ola, the state's 450-unit group housing site in Lahaina for fire survivors. (HomeAid Hawaii)
Artist rendition of Ka Lai Ola, the state’s 450-unit group housing site in Lahaina for fire survivors. (HomeAid Hawaii/2024)

Green has repeatedly asked for FEMA to build up to 1,000 units. Brown said FEMA is currently negotiating with the private landowner in Lahaina on a site known as Kaanapali 2020 for a second group site of 205 homes.

If FEMA can lease the land and work out water issues, it will build that second site, Brown said.

On Sunday, crews working on the project in Kahului saw Bissen driving by to see for himself the first house being put on county land. Bissen said the project at that location was conceived by the county’s new Office of Recovery, with many departments coming together with CNHA.

“This is just another example of the commitment that everyone has made to housing our folks here in Maui,” Bissen said. “And we continue with that commitment.”

Civil Beat’s coverage of Maui County is supported in part by a grant from the Nuestro Futuro Foundation.

Only 1% of readers are donors to Civil Beat

More than 600,000 people read Civil Beat articles every month, but only 7,000 of those readers also donate to support the news they count on. That’s only 1% of readers!

If you are among the 99% of Civil Beat readers who haven’t made a donation before in support of our independent local journalism, you can change that today. A small donation makes a big impact.

 

About the Author