Mahiʻai Notice of FONSI

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

7/10/2025

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 DHHL.

REQUEST FOR RELEASE OF FUNDS

On or about July 29, 2025, the Department of Hawaiian Home Lands will submit a request to 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 Mahiai Lot 185 for the purpose of providing people of native Hawaiian ancestry with safe, secure, and affordable housing. The amount requested is $9,000,000. The State of Hawaii is experiencing a housing shortage across all demographics, including DHHL Beneficiaries, as noted in the latest Hawaiian Homes Commission packet (State of Hawaii, Department of Hawaiian Home Lands, 2024, available online at https://dhhl.hawaii.gov/wp content/uploads/2025/06/June-16-17-2025-HHC-Packet-Kapolei-Oahu.pdf). As of June 2025, the DHHL waitlist has grown to include over 7,380 applicants on Hawaiʻi Island who are waiting for housing on agricultural lots to become available, and a total of 19,962 applicants for housing on agricultural land statewide. Forty percent of beneficiaries surveyed in 2020 reported that they had been on the list awaiting housing for over 20 years.

The proposed project is the expenditure of federal funds for the construction of up to sixteen (16) single family dwellings at parcel (TMK (3) 2-2-061:002), located on Mahiai Street, near Mamalahoa Highway, in Panaewa, South Hilo, on Hawaiʻi Island. The action will involve vertical construction of the dwelling units including slab on grade or post and pier foundations; dwelling unit structure and the dwelling electrical, plumbing, mechanical, and communications; garages (attached or detached); pouring of concrete driveways and patios; and, landscaping of grass lawns, ornamental accent plants, and shade trees. The single-family dwellings will be constructed on subdivision lots that were developed (grading, and construction of road, sewer, water, stormwater, and communications infrastructure) using non-federal funds. The project will also include infrastructure laterals necessary to connect homestead lots to main infrastructure, drainage, and any grubbing, grading, and trenching necessary to prepare for house construction and to ensure adequate drainage of the lot. In addition, the project may also include home owner financing, supportive services and rental assistance.

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://cpd.hud.gov/cpdpublic/environmental-reviews or upon request, 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 Department of Hawaiian Home Lands via their consultant, PBR HAWAII, at [email protected]. Reference the project by name: ‘Mahiai Lot 185”. All comments received by July 26, 2025, 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 fund and the DHHL’s certification for a period of fififteen 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. Potential objectors should contact HUD to verify the actual last day of the objection period.

Kali Watson, Chairperson, DHHL