Department of Hawaiian Home Lands offers more than 800 residential project leases on Kaua’i

The Department of Hawaiian Home Lands offered more than 800 residential project leases on the island of Kaua‘i Saturday as part of the department’s largest residential awards on the Garden Isle this year.

“The resilience of our Native Hawaiian community is remarkable, and we will work diligently to ensure our families have every opportunity to remain home in Hawai‘i,” said Governor Josh Green. “This administration is investing in innovative solutions — like project leases and community partnerships — because it is our shared commitment to end the DHHL waitlist and that starts by creating multiple pathways to homeownership.”

A total of 750 project leases were offered for the homestead community of Līhu‘e and 82 project leases for Hanapēpē Phase II.

“We thank the Department of Hawaiian Home Lands for continuing to invest in Kaua‘i,” said Mayor Derek S.K. Kawakami. “The acquisition of Grove Farm aligns with our county’s long-term plans for residential use in the Līhu‘e mauka area and we hope to see active development move forward in a way that delivers much-needed housing for our island. Increasing the availability of homes remains a top priority for our community, and we look forward to seeing this land put to use to help meet that need.”

In Līhu‘e, single-family homes will be built on 6,500 square foot lots across an approximately 260-acre parcel near the downtown urban core. Acquired by the DHHL from Grove Farm in December 2025 for $18,251,310, this homestead project will consist of residential and agricultural homesteading options. 

The first homes in Līhu‘e are anticipated to be delivered in 2031.

David Hinazumi, Grove Farm senior vice president, shared the organization’s excitement, “The sale of a portion of Grove Farm’s landholdings to the DHHL is in alignment with our mission to build thriving local communities. We are honored to partner with the department and to be a part of a larger collaborative effort to address the island’s critical need for housing.”

In Hanapēpē, Phase II homes will be built on lots nearly 7,500 square feet in size. The first 30 homes, known as Phase IIA, will be allocated for eligible DHHL beneficiaries earning up to 60% of the Area Median Income (AMI). Rent will be determined in accordance with Low-Income Housing Tax Credit (LIHTC) guidelines and available under DHHL’s rent-with-option-to-purchase program, allowing residents the chance to buy their homes after the 15-year LIHTC compliance period concludes.

Sitework and infrastructure in Hanapēpē Phase II is slated for completion in early 2027 with the delivery of the area’s first homes at the end of the year.

A Historic Year for Project Lease Awards

The DHHL is on track for a record-setting year for project lease awards in 2026 with more than 3,400 offered statewide and aims to offer nearly 5,000 leases in 2027.

“Project leases serve as a promise to our beneficiaries that homes are on the way,” DHHL Director Kali Watson said. “Through our efforts we honor the mission of Prince Jonah Kūhiō Kalaniana‘ole, who sought to empower Native Hawaiians by returning them to the land — and it is on the ‘āina our lāhui can reconnect to what it means to be Hawaiian.”

Project leases provide a critical pathway to homeownership, offering options such as turnkey homes, owner-builder lots and rent-to-own opportunities. 

Unlike previous processes, beneficiaries secure a homestead lease prior to the completion of development. This approach gives families the chance to prepare for both financial and program requirements, thereby ensuring long-term stability and the opportunity to transfer their leases to eligible successors.

“It is our beneficiaries’ kuleana to ensure their contact information is up-to-date and that they are reviewing all correspondence received from the department — and acting accordingly,” Watson said. “Project leases preserve legacies and we do not want anyone to miss an opportunity.”

Act 279 – The Waitlist Reduction Act

Both the Līhuʻe and Hanapēpē homestead projects are funded by Act 279, the department’s vital infusion of $600 million in general funds from the Hawaiʻi State Legislature in 2022. 

Known as the “Waitlist Reduction Act,” Act 279 was specifically designed to support the development of a comprehensive strategy focused on reducing the DHHL waitlist.

Through strategic acquisitions like Grove Farms, the DHHL can enhance its initiatives to deliver housing and agricultural opportunities near existing infrastructure. This approach allows the DHHL to address decades of neglected infrastructure needs and unlock housing development on a scale that was previously unattainable.

“Eliminating the waitlist is a goal that requires our state’s full support,” Watson added. “Every opportunity to add land matters and every partnership — especially that of our ali‘i trusts — will contribute to progress.”

The Future of Homesteading on the Garden Isle

The DHHL has four active projects on Kaua‘i:

• Courtyards at Waipouli (Kapa‘a): 82 units
  • Project leases awarded: February 2026
• Hanapēpē Phase II: 82 single-family lots
  • Project leases awarded: October 2026
• Līhu‘e Homestead: 750 single-family lots
  • Project leases awarded: October 2026
• Anahola Kuleana Homestead: 108 mixed-use lots
  • Project lease awards: To be determined

As of October 2026, there are a total of 4,417 homesteading applications for the island of Kaua‘i including: 2,349 applicants on the island-wide agricultural waitlist, 352 on the island-wide pastoral waitlist and 1,716 on the island-wide residential waitlist.

For more information on past and upcoming lease awards and offers visit https://dhhl.hawaii.gov/awards/.