Notice of Finding of no Significant Impact and Notice of Intent to Request Release of Funds
NOTICE OF FINDING OF NO SIGNIFICANT IMPACT AND NOTICE OF INTENT TO REQUEST RELEASE OF FUNDS
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 July 15, 2026, 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 Hoʻolehua Scattered Lots for the purpose of providing people of native Hawaiian ancestry with housing financing and general home-ownership assistance. The proposed action involves the subdivision and reconsolidation of five (5) parcels, totaling approximately 51.78 acres, into twelve (12) subsistence agricultural lots for lease to native Hawaiian beneficiaries. Four (4) lots will be six (6) acres, four (4) lots will be two (2) acres, two (2) lots will be two point five (2.5) acres, one (1) lot will be twelve point eight (12.8 acres), and one (1) lot will be two point two (2.2) acres. Each lot will have an assumed development area of 10,000 square feet with the remainder of the lot available for agriculture activities.
The expenditure of NAHASDA funds will provide homeowner financing to eligible families for vertical construction of single-family residential units on the improved lots. NAHASDA funds may also be used for onsite improvements needed to make the subdivided lots suitable for lease, including the construction of access driveways, drainage basins, grubbing, grading, and trenching necessary to prepare for house construction and to ensure adequate drainage of the lot. Infrastructure laterals will be installed to connect homestead lots to the Hoʻolehua Water System for potable water, Molokaʻi Irrigation System for irrigation water, as well as electrical and telecommunications line extensions to service the lots. In addition, the project may provide services such as homeowner assistance, which may include assistance with down payment and closing costs, mortgage, utilities and insurance payments, rental and utility assistance and housing counseling. Offsite improvements being funded by other funding sources include paved roadways along Moomomi Avenue, Farrington Avenue, and Puu Kapele Avenue, infrastructure installation, and roadway drainage improvements including basins, culverts, trenches and swales. The HUD funding amount is expected to be $1,100,000.
The proposed project is located on approximately 51.78 acres currently identified by Tax Map Keys (TMKs) (2)5-2-005:031 (Parcel 31), (2)5-2-026:003 (Parcel 3), (2)5-2-026:014 (Parcel 14), (2)5-2-026:016 (Parcel 16), and (2)5-2-026:017 (Parcel 17) located in Hoʻolehua, Molokaʻi, Hawaiʻi. The project site is located south of Maunaloa Highway and the Molokaʻi Airport. The southern Molokaʻi coast and Kaunakaʻakai, the island’s town center, are located south and southeast of the project site, respectively. The slopes of Maunaloa or the West
Molokaʻi Volcano are located to the west and Wailau, and Kamakou, or the
East Molokaʻi Volcano, is east of the project site. To the north of the project site
is the northern Molokaʻi coast and Mo‘omomi Bay.
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 is posted on the HUD Community Planning and Development Website. The ERR may be viewed and/or downloaded online at URL Link: https://cpd.hud.gov/cpd-public/environmental-reviews or upon request via email and/or hard copy as necessary from Breana Kauai, 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’s consultant, Munekiyo Hiraga at [email protected]. All comments received by July 14, 2026, 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