S.B. NO.



S.D. 1
















SECTION 1. The legislature finds that Ahupuaa O Kahana State Park cannot realize its potential as either a living park or as a public resource until certain unresolved conflicts are settled. These conflicts include the vision and management of the park, unfulfilled requirements for interpretive hours, defaulted mortgage payments, and the status of certain leases.

Now known as Ahupuaa O Kahana State Park, Kahana Valley was acquired by the State of Hawaii in the late 1960s and the concept of a living park was established in 1971. On December 1, 1993, the board of land and natural resources issued leases with a term of sixty-five years to thirty-one families living in Kahana, as authorized by an Act of the legislature in the late 1980s; these leases expire on November 30, 2058.

The legislature additionally finds that twenty-eight leases are in effect for families who relocated from various sites in the valley and live on lots developed on Trout Farm Road and Kahana Valley Road. Additionally, six families reside in houses that were slated for demolition when the original lessees moved to the new house lots.

The legislature also finds that in 2009, after an aborted eviction effort of the six families who were, at the time, without leases, the legislature established a two-year moratorium on evictions, authorized the department of land and natural resources to issue long term leases, and established a living park planning council. The six families were granted leases by the board of land and natural resources in 2013; provided that the lessees were required to be responsible for their own wastewater solutions and to comply with all relevant government regulation. Cesspools are not permitted on any of the lots and the department of health has ordered closed the existing cesspools used by the six families.

The legislature further finds that, in lieu of monetary rent, all lessees in Kahana are required to participate in the interpretive programs of the park, in the amount of twenty‑five hours per month. A 1986 attorney general opinion states that the "residents are allowed to live in Kahana only" if they are part of the interpretive programs in the living park, and if "they are not a part of the interpretive programs, they cannot reside at the park." Several families are current on their service hours, but many are in serious arrears.

The legislature additionally finds that, to help the lessees move from their original homes and support the construction of houses on the new lots, the State enacted legislation to provide low-interest home construction and mortgage loans of up to $50,000 per lease. However, several of these mortgages are now in default.

The legislature also finds that some of the families who are current on their mortgage payments and interpretive hours would remodel or improve their homes if they had access to financing. However, these families are unable to borrow money due to the unique status of the living park. Many dwellings in Kahana could be substantially improved with a new source of financing, which would improve the state park overall. The six families who were subject to prior eviction attempts would also benefit from access to mortgage financing, to upgrade their sewage treatment to comply with the 2013 lease conditions and complete much needed repairs on their homes.

The purpose of this Act is provide new mortgage financing, up to $           per lease, to lessees in Ahupuaa O Kahana State Park; provided the lessees are current on existing financing and interpretive hours, so that the lessees can meet health and safety standards for their dwellings.

SECTION 2. There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2019-2020 and the same sum or so much thereof as may be necessary for fiscal year 2020-2021 to provide low-interest home construction and home improvement loans of up to $           for any holder of a Kahana Valley State Park residential lease who is not in arrears or in default on any existing loan and who is current on required service hours for the previous six months. Moneys appropriated shall be deposited into the housing finance revolving fund; provided that upon fulfillment of the purpose of this Act, all unencumbered moneys shall lapse into the state general fund.

The sums appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act.

SECTION 3. The Hawaii housing finance and development corporation shall administer the loan program established under this Act and shall establish guidelines for loan terms.

SECTION 4. This Act shall take effect on July 1, 2050; provided that all moneys from the appropriation under section 2 that are unexpended or unencumbered as of June 30, 2023, shall be transferred to the general fund.




Report Title:

Kahana Valley State Park; Low-interest Loans; Home Construction and Improvement; Hawaii Housing Finance and Development Corporation; Appropriation



Appropriates moneys to the Hawaii Housing Finance and Development Corporation for low-interest home construction and home improvement loans to holders of Ahupuaa O Kahana State Park residential leases. Lapses funds appropriated to the general fund on June 30, 2023. Effective 7/1/2050. (SD1)




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