Notice of Finding of No Significant Impact and Notice of Intent to Request Release of Funds for Laʻi ʻŌpua Villages 1 and 2

NOTICE OF FINDING OF NO SIGNIFICANT IMPACT AND NOTICE OF INTENT TO REQUEST RELEASE OF FUNDS FOR TIERED PROJECTS AND PROGRAMS

Kali Watson, Chairman

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.

NOTICE OF INTENT TO REQUEST FOR RELEASE OF FUNDS FOR TIERED PROJECTS AND PROGRAMS

Tier 1 Broad Review: Laʻi ʻŌpua Villages 1 and 2

On or about October 9, 2026, the Department of Hawaiian Home Lands (DHHL) 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 called Laʻi ʻŌpua Villages 1 and 2 to construct residential subdivision infrastructure as well as the vertical construction of up to 544 new single-family homes in the Department of Hawaiian Home Lands Lai Opua Homestead Communities of Village 1 and Village 2. The total estimated project cost is $445,000,000. HUD funding amount is currently allocated at $2M.

Tier 1 Broad Review Project: Laʻi ʻŌpua Villages 1 and 2

Purpose:

The Department of Hawaiian Home Lands has been continuing its 100 year mission to meet the housing needs of its native Hawaiian beneficiaries. The number of applicants for DHHL housing continues to increase. According to a DHHL Beneficiary Survey 2020, most respondents are seeking turn key single family dwellings. Additionally, as of August 2026, there are 5,797 DHHL beneficiaries on the residential waitlist for the island of Hawaii, underscoring the demand for housing opportunities in the area. This project will provide a safe and healthy housing opportunity for approximately 400 beneficiaries and their families.

Location:

The proposed project is located on the west side of the Island of Hawaiʻi, in the Ahupuaʻa of Kealakehe, within the DHHL Villages of Laʻi ʻŌpua. The project area is currently vacant and undeveloped, and is surrounded by single family residential properties in the neighboring Laʻi ʻŌpua Villages to the west and privately owned residences to the east. Within this larger master planned community, Villages 1 and 2 comprise a combined project area of 110.4 acres, consisting of Village 1 (52.9 acres), Village 2 (54.5 acres), off-site infrastructure (3.0 acres), and potential aquisition lands. The project area is located across the following TMKs. Village 1: (3) 7-4-021-014, (3) 7-4-021-019. Potential Acquisitions: (3) 7-4-019-999 (por) (portion of Hooloa St), (3) 7-4-021:020 (por), (3) 7-4-021:21 (por), (3) 7-4-021-999 (por), (3) 7-4-019-043 (por). Village 2: (3) 7-4-021-015, (3) 7-4-021-016. Off-site infrastructure: (3) 7-4-023:128 (por) (Kahiohale Loop) (3) 7-4-022:107 (por) (Puohe St.), (3) 7-4-019-999 (por) (portion of Manawalea St).

Project Description:

Approximately 208 lots are estimated in Village 2, which is currently in design and approximately 182 lots are conceptualized in Village 1, although lot counts may be revised to up to a total of 544 for the two Villages combined. The action is anticipated to include road construction, development of water, wastewater, and stormwater infrastructure, installation or trenching of electrical and communications infrastructure, as well as grubbing, grading and preparation of home lots. Additionally, the action will include the installation of non-barbed wire fencing around archaeological and biological preserves and may include non-barbed wire fencing around the subdivision perimeter. In addition to fencing, grubbing and grading activities may be employed to create fire breaks. The proposed action will also include ground disturbing offsite water improvements, which include upsizing the water line in Puohe Street and Kaniohale Street and the installation of water lateral in Manawalea Street. Depending on subdivision final layouts, this project may include acquisition of lands that are not currently in DHHL's inventory. The scope of this project may also encompass financial supportive services, including down payment assistance, homeowner financing, housing counseling, mortgage assistance, rental assistance, and utility assistance.

Level of Environmental Review Citation: 24 CFR Part 58, Section 58.36 (NEPA Environmental Assessment)

Tier 2 Site Specific Reviews:

At the time of completion of the Tier I Environmental Assessment, all Related Authorities and Environmental Assessment Factors were satisfied with exception of Historic Resources and Endangered Species. The site specific reviews will cover the following laws and authorities not addressed in the Tier 1 broad review. Conducting a Tiered Review will allow each phase of this project to proceed as their historic resources and endangered species act consultations and determinations are complete.

The following are 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 describe implementation any mitigation measures, conditions, or required permits.

Historic Preservation National Historic Preservation Act of 1966, DHHL submitted an addendum archaeological inventory survey for State Historic Preservation Division's (SHPD's) review and acceptance and is submitting an archaeological monitoring plan and archaeological preservation plan as mitigation commitments for SHPD's review and approval. Although these submittals are part of the Chapter 6E process, they will inform the Section 106 process. Consultation with NHO and other stakeholders pursuant to Section 106 of the National Historic Preservation Act (NHPA) was conducted as part of the broad level review in tandem with Chapter 6E consultation for villages 1 and 2.Consultation is an on-going process and will continue. Tier 2 will include consultation with the State Historic Preservation Officer (SHPO) and obtaining SHPO's concurrence with an effect determination will require Section 106 compliance for villages 1 &2. The area of potential acquisition and off-site infrastructure within existing roadways has not be evaluated and Section 106 consultation will be required under tier 2.

Endangered Species Act of 1973, particularly section 7; 50 CFR Part 402 - DHHL has been evaluating the project based upon its current land holdings in the region. Section 7 consultation was conducted as part of the broad level review for villages 1 and 2. However, should an adjacent parcel be added to DHHL's land inventory, it would significantly improve the number of residential homestead lots available and circulation within Village 1. The area of potential acquisition and off-site infrastructure within existing roadways will require section 7 consultation as part of the tier 2 evaluation.

Mitigation Measures: This project's mitigation plan can be found in the Environmental Review Record (ERR).

FINDING OF NO SIGNIFICANT IMPACT

The DHHLhas 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 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/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 Department of Hawaiian Home Lands, Office of the Chairman, Attn: Malia M. Cox via their consultant PBR

HAWAII & Associates, Inc. at [email protected]. Reference the project by name: Laʻi ʻŌpua Villages 1 and 2. All comments received by October 7, 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 Chairman, 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. Potential objectors should contact HUD to verify the actual last day of the objection period.

Kali Watson, Chairman, DHHL