NOTICE OF FONSI AND NOTICE OF INTENT TO REQUEST RELEASE OF FUNDS FOR TIERED PROJECTS AND PROGRAMS
NOTICE OF FINDING OF NO SIGNIFICANT IMPACT AND NOTICE OF INTENT TO REQUEST RELEASE OF FUNDS FOR TIERED PROJECTS AND PROGRAMS
Kali Watson, Chairperson
Hawaiian Homes Commission
Department of Hawaiian Home Lands
P.O. Box 1879
Honolulu, Hawai‘i, 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.
NOTICE OF INTENT TO REQUEST RELEASE OF FUNDS
FOR TIERED PROJECTS AND PROGRAMS
On or about November 7, 2025, the Department of Hawaiian Home Lands (DHHL) will submit a request to the U.S. Department of Housing and Urban Development (HUD) for the release of Native Hawaiian Housing Block Grant (NHHBG) funds under Title VIII of the Native American Housing Assistance and Self Determination Act (NAHASDA), to undertake the following project: Nānākuli Tiered Review. The funding amount is expected to be $12,500,000.
Location:
The proposed project is located in the Hawaiian Homestead Community in Nānākuli and the Princess Kahanu Estates subdivision, located on the leeward coast of the island of Oʻahu, in the Moku of Wai‘anae, City and County of Honolulu, Hawaiʻi Ahupua‘a of Nānākuli and Lualualei, and west of the Honolulu International Airport. The project is located within tax plats 87033, 87042, 87043, 89002, 89002, 89003, 89004, 89005, 89006, 89007, 89009, 89010, 89011, 89012, 89013, 89012, 89013, 89014, 89015, 89016, 89017. The project area encompasses approximately 468 acres of Hawaiian Homestead Lands.
Given the nature and scope of the proposed activities, DHHL has determined that the project area consists of the area bounded by Lualualei Naval Reservation to the north, Hakimo Road to the northwest, Farrington Highway and the coastline adjacent to the Pacific Ocean to the southwest, Black Rocks Beach Park to the south, Camp Pālehua to the east, and the Nānākuli Forest Reserve to the northeast. The designated area is outlined in the enclosed Regional Location map.
Project/Program Description:
The activity is funded under the Native Hawaiian Housing Block Grant Program (NAHASDA) under HUD grant 24HBGHI0001. The proposed project is the expenditure of NAHASDA funds for the rehabilitation, demolition/re-construction, and infill new construction of up to twenty percent of the 1,375 buildings on residential lots provide people of native Hawaiian ancestry with safe and secure housing by retaining and increasing beneficiary housing supply in existing DHHL communities.
A site-specific review of any project activities that are proposed on lots within the project area that may have special circumstances that require further review (as detailed below) will also be conducted. The proposed project, which is primarily focused on rehabilitating existing single-family dwellings, will then advance on a lot-by-lot basis. As the need arises, a more in-depth assessment and action to avoid, minimize, or mitigate for any specific activities proposed on lots that are located within the FFRMS floodplain, areas with unacceptably high noise levels, and lands mapped as wetlands will be taken.
The proposed work may involve the renovation of existing residential buildings, including interiors, exteriors, and associated infrastructure to serve Hawaiian families within the same structure and footprint, and demolition/new construction in the same location. The proposed work may also involve infill new construction of additional housing on vacant lots. Project improvements would include the evaluation of the existing infrastructure and repair and/or replacement of infrastructure to meet current county standards. It would also involve the conversion of any existing cesspools to Department of Health-approved Individual Wastewater Systems (IWS) or connection to sewer. These infrastructure improvements may require digging and trenching in the location of the current utility services.
Tier 2 site specific reviews will be completed for those laws and authorities not addressed in the Tier 1 broad review for each parcel under this program when TMK parcels within the project area become known.
Level of Environmental Review Citation: 24 CFR Part 58, Section 58.36 (NEPA Environmental Assessment)
Tier 2 Site Specific Review: The site-specific reviews will cover the following laws and authorities not addressed in the Tier 1 broad review.
The laws and authorities that will be included in the Tier 2 site specific review, and a summary of procedures that will be undertaken to address any issues that arise and implement any mitigation measures, conditions, or required permits follows. Detailed mitigation measures can be found in the Environmental Review Record.
Coastal Zone Management Act, Sections 307(c) & (d) – Some parcels in the project area are within an SMA and need to be reviewed in additional detail based on site-specific criteria (such as project scope and location) that will be further reviewed and assessed in Tier 2.
Contamination and Toxic Substances, 24 CFR Part 50.3(i) & 58.5(i)(2) – Although larger hazardous facilities in the vicinity of the project area were reviewed in Tier 1, smaller-scale hazards that may be inherent in older homes such as lead based paint (LBP), lead containing paint (LCP), and asbestos containing materials (ACM) must be reviewed on a site-specific level in Tier 2.
Explosive and Flammable Hazards, 24 CFR Part 51 Subpart C– Any proposed projects that may involve new construction or any potential increase in residential density would require further investigation into the project site and surrounding parcels to identify and assess any residential ASTs for compliance with explosive and flammable hazards requirements.
Flood Insurance, 24 CFR 50.4(b)(1) and 24 CFR 58.6(a) and (b); 24 CFR 55.5. – According to proposed FIRM updates from FEMA (which will take effect in Spring 2026) most existing structures in the project area are located in FIRM Zone X, which is outside the special flood hazard areas. However, some other parcels may be located partially or completely within Special Flood Hazard areas. Therefore, further assessment to identify and assess risk to any existing structures located in special flood hazard areas will be conducted as part of the site-specific/Tier 2 review process.
Floodplain Management, Executive Order 11988, particularly section 2(a); 24 CFR Part 55– Some portions of the project area may be closer to streams, wetlands, or the coast and may be impacted by FIRM Special Flood Hazard Areas, which would require further analysis of flood risks and potential need for mitigation measures.
Historic Preservation National Historic Preservation Act of 1966, particularly sections 106 and 110; 36 CFR Part 800 – Under the DHHL NAHASDA PA, projects involving ground disturbance require archaeological monitoring. Projects located in PKE would also require a full 106 consultation process, as they are not covered under the NAHASDA PA.
Noise Abatement and Control 24 CFR 51.101(a)(3) or 24 CFR Part 51 Subpart B – Although most parcels are well under the HUD-designated acceptable noise level, some homes that front Farrington Highway exceed acceptable noise levels, and may require noise attenuation, relocation or cancellation. Those homes will be identified and assessed in the Tier 2 review process.
Sole Source Aquifer, 40 CFR Part 149 – One existing home in the project area was found to overlap with the Sole Source Aquifer and may require closure of a cesspool and connection to public sewer or conversion to a DOH-approved IWS.
Wetland Protection, Executive Order 11990 – An 8‐step review was completed to further evaluate and mitigate potential impacts for projects located within flood zones or wetlands as per EO 11988 and 11990. However, any portions of the project area that may be located within proximity to NWI wetlands and may require further analysis to avoid and minimize potential impacts will be identified and assessed in more detail in the Tier 2 review process.
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) that documents the environmental determinations for this project will be posted on the HUD Exchange website, and may be viewed and/or downloaded online at URL Link: https://cpd.hud.gov/cpd-public/environmental-reviews or hard copy as necessary from Shauna Mau, who may be contacted at (808) 730-0182.
PUBLIC COMMENTS
Any individual, group, or agency may submit written comments on the ERR to the DHHL, Office of the Chairperson, Attn: Malia Cox via their consultant PBR HAWAII & Associates, Inc. at [email protected]. Please reference the project by name: Department of Hawaiian Home Lands Nānākuli Tiered Review. All comments received by November 6, 2025, will be considered by the DHHL prior to authorizing submission of a request for release of funds.
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 fund 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 DHHL 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 the HUD Honolulu Field Office at 1003 Bishop Street, Suite 2100, Honolulu, HI 96813, or via email at [email protected]. Potential objectors should contact HUD to verify the actual last day of the objection period.
Kali Watson, Chairperson, DHHL