Final Notice and Public Review of a Proposed Activity in a Wetland, in Wailuku Single Family Residential Subdivision, Maui

To: All interested Agencies, Groups and Individuals:

This is to give notice that the Department of Hawaiian Home Lands (DHHL), the Responsible Entity under 24 CFR Part 58, has determined that the following proposed action under the State of Hawai'i, DHHL Wailuku Single Family Residential Subdivision Project 23HBGHI0001 NH-24-14.07 is located in a wetland, and DHHL will be identifying and evaluating practicable alternatives to locating the action within the wetland and the potential impacts on the wetland from the proposed action, as required by Executive Order 11990, in accordance with HUD regulations at 24 CFR 55.20 in Subpart C Procedures for Making Determinations on Floodplain Management and Protection of Wetlands. The proposed project location is 101 Kuikahi Drive in Wailuku, Maui. The extent of the Federal Flood Risk Management Standard floodplain was determined using the 0.2 percent flood approach, and the Project is located in Federal Emergency Management Agency Flood Zone X, areas determined to be outside the 0.2% annual chance floodplain.

The DHHL Wailuku Single Family Residential Subdivision Project involves the construction and development of a new residential subdivision comprised of a maximum of 204 residential lots (173 with turn-key single-family residences and 31 as vacant improved lots for single-family residences), an approximately 9-acre storm water retention basin, and an approximately 3.1-acrepark. DHHL beneficiaries will be able to purchase a residence out right or via a potential rent-with-option-to-purchase. The Project also includes the construction and development of underground and overhead infrastructure to serve the residences and vacant lots, including potable water, fire protection, wastewater, drainage, street lights, electrical power, and telecommunication utility connections. The Project will construct new internal subdivision streets with 44-foot-wide Right of Ways, which will include a new underground drain inlet/line.

Approximately 450 feet of paved shoulder along the southern side of Kuikahi Drive will be widened to provide a continuous 5-foot-wide paved walkway between Kehalani Mauka Parkway and Honoapi'ilani Highway. All internal streets within the subdivision will have a 5-foot-wide paved sidewalk along one side of the street. Landscaping and irrigation will be provided within the park and along internal streets.

The Project will require ground disturbing activities such as grubbing, grading, and trenching to prepare areas for construction and to ensure adequate drainage. 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. DHHL is the Responsible Entity undertaking the Project and is the owner of the Project site. The Project is located on an approximately 77-acre portion of Tax Map Key (2) 3-5-002:003, an area that includes parts of the intermittent riverine (excavated) Kaiapaoka'īlio stream, Waihe'e Ditch, Kama Ditch, and one unnamed dry ditch. According to the National Wetlands Inventory Wetlands Mapper, the stream and ditches within the Project site are classified as riverine habitat.

The Hawai'i Department of Health, Clean Water Branch classifies Kaiapaoka'īlio stream as a "Class 2" estuary, which should be protected for recreational purposes, the support and propagation of aquatic life, agricultural and industrial water supplies, shipping, and navigation. Two irrigation ditches have State Inventory of Historic Places (SIHP) numbers: Waihe'e Ditch (SIHP 50-50-04-5197) and an unnamed ditch (SIHP 50-50-04-5729). The Waihe'e ditch was a contributing component of the Waikapu Sugar Company's (WSCo's) vast irrigation system and exemplifies the characteristics, technology, and pattern of features common to sugar irrigation ditch systems in Hawai'i. The unnamed ditch was also a contributing component of WSCo's vast irrigation system. Additionally, water from the stream and ditches may be used for freshwater resources, including lo'i kalo. The Project may affect approximately 0.7 miles of ditches, and 0.2 miles of streams.

DHHL consulted with the Department of Land and Natural Resources, State Historic Preservation Division (SHPD), and SHPD agreed that the historic properties were adequately documented and no additional archaeological work was needed. Mason Architects, Inc. surveyed the previously identified properties and evaluated them for significance per SHPD's recommendation, and SHPD concurred with the project effect determination of "effect, with proposed mitigation" with mitigation related to the ditch system being:

1. Recordation of the unnamed mauka-makai ditch (SIHP #50-50-04-05729) in the form of the submitted RLS as the RLS sufficiently documented the ditch; and

2. No further work for the Waiheʻe Ditch (Site 50-50-04-05197) because the resource was previously recorded through a Historic Context Study and a HAER report (HAER No. HI-162).

All SHPD recommended mitigation measures have been completed by DHHL for this project.

The Department of the Army, U.S. Army Corps of Engineers (USACE) Honolulu District determined the Project site does not contain waters of the U.S., including wetlands or navigable waters of the U.S., and does not require a DA permit under Section 404 and/or Section 10 of the Rivers and Harbors Act of 1899 in a letter to DHHL dated February 3, 2025.

The Project includes the development of a new culvert crossing to allow a proposed interior street to connect to Kuikahi Drive over an existing ditch. A new underground drain inlet and line system will drain onsite stormwater into either 1) the Waikapū Retention Basin or 2) proposed approximately 9-acre stormwater retention basin (located at the northwest corner of the Site), and eventually discharging into Waialae Reservoir.

Impacts on Kaiapaoka'īlio stream:

The Project involves the construction of a new underground drain inlet/line within the Site's internal streets, which will convey offsite runoff and the intermittent flows of Kaiapaoka'īlio stream to an existing drainageway adjacent to the Site until finally entering the Waiale Reservoir. This is a direct long-term impact on the stream. A review of the Hawai'i Streams Data Viewer from DLNR, Division of Aquatic Resources, labels Kaiapaokaʻīlio stream as a non-perennial stream. The stream is non-relatively permanent, intermittent stream, and does not have a continuous surface connection to a jurisdictional waterway.

Impacts on Waihe'e Ditch

The Waihe'e Ditch (SIHP 50-50-04-5197), which runs north to south, is not connected to navigable waterways or their respective wetlands. Waihe'e Ditch terminates in Waihe'e Pond approximately 2.94 linear miles south of the southern border of the Project area, which has no discernable outflow (surface or subsurface). The National Hydrology Dataset labels Waihe'e Ditch as a canal ditch. The WWC-owned Waiheʻe Ditch continues to provide irrigation water and will not be removed. However, portions of the open channel Waiheʻe Ditch are proposed to be replaced by a pipe where the DHHL subdivision roadways will cross over. The proposed DHHL sewer, water, and storm drainage utility pipelines within the subdivision roadways are proposed to cross under the Waiheʻe Ditch at the roadway crossings and will be processed by the County in a manner consistent with existing projects crossing under ditches to the north and the south of this project.

Impacts on Kama Ditch

According to the USACE, Kama Ditch (SIHP 50-50-04-5474) does not have a relatively permanent flow and is not connected to navigable waterways or their respective wetlands. A review of the National Hydrology Dataset shows Kama Ditch terminates approximately 0.79 miles from the southern border of the Project area and is labeled as a canal ditch. Upon its discovery during construction of DHHL's adjacent Pu'uhona project, it was determined the Kama Ditch does not contain water and is no longer in use by the WWC. Due to its loss of functionality, it has been determined the Kama Ditch cannot support future uses and thus will be removed.

Impacts on Unnamed Dry Ditch:

The Unnamed Ditch (SIHP 50-50-04-5729), which runs west to east, is not connected to navigable waterways or their respective wetlands. This Unnamed Ditch connects to Waihe'e Ditch in the review area at (20.866765, -156.505734). Waihe'e Ditch terminates in Waihe'e Pond, which has no discernable outflow (surface or subsurface). The National Hydrology Dataset labels this unnamed ditch as a canal ditch. Like the Waihe'e Ditch, the WWC-owned Unnamed Ditch continues to provide irrigation water and will not be removed. Similarly, portions of the Unnamed Ditch are proposed to be replaced by a pipe where the DHHL subdivision roadways will cross over.

In compliance with the requirements of Section 7 of the Endangered Species Act of 1973, informal consultation for the Project was initiated with USFWS on July 22, 2025 (see Attachment 4: DHHL Wailuku Section 7 informal consultation request). The Project proposed conservation measures to avoid and minimize potential Project-related impacts to federally listed species, as identified in the June 2022 "Biological Resources Study for the Wailuku Single Family Residential Project, Wailuku, Maui," and the May 2025 species list from the USFWS Information for Planning and Consultation (IPaC) tool (See Attachment 5: Biological Resources Study for the Wailuku Single Family Residential Project and Attachment 6: DHHL Wailuku IPaC Species List). Measures for avoiding and minimizing potential Project-related impacts to Hawaiian waterbirds, as described in the USFWS letter received during the early public notice comment period were proposed as conservation measures in the Project's Section 7 Informal consultation process.

In its September 19, 2025 response, USFWS concurred that the proposed action may affect, but is not likely to adversely impact the federally listed species with implementation of the proposed conservation measures (See Attachment 7: DHHL Wailuku USFWS Section 7 consultation response). However, the agency noted that listed Hawaiian waterbirds are found in various wetland habitats including fresh and brackish-water marshes, natural or man-made ponds, coastal estuaries, artificial reservoirs, Colocasia esculenta (kalo or taro) loʻi or patches, and irrigation ditches. Aeʻo may also be found wherever ephemeral or persistent standing water may occur, such as sediment or detention basins. Although no Hawaiian waterbirds or Nēnē (Hawaiian Goose) were previously detected at the Project site (Biological Resources Study, 2022), USFWS noted construction activities and the installation of a 9-acre storm water retention basin may result in temporary attraction of these birds to the Project site. Additionally, the undergrounding of Kaiapaokailio Stream may result in a minor reduction in water available for waterbirds flying over the site, however, that is likely offset by the installation of the retention basin.

DHHL has considered the following alternatives and mitigation measures to minimize adverse impacts and to restore and preserve natural and beneficial functions and intrinsic values of the existing floodplain and wetland:

• Alternative site outside of and not affecting the wetland. The 2004 DHHL Maui Island Plan (MIP) provides an overview of DHHL's land holdings on Maui and identifies the best uses for those lands. The DHHL land holdings on Maui include lands outside of the wetland. However, according to the 2004 MIP, not all of DHHL's land holdings on Maui are suitable for residential development. The DHHL land holdings on Maui best suited for residential development have already been developed or have been designated for residential development in the MIP and are in various stages of the development process.

• Current site outside of and not affecting the wetland and floodplain. Alternative B considers the current site with a reduced number of lots outside of the wetland and floodplain. This would result in less new homesteading opportunities for DHHL beneficiaries than those proposed in the current Project and may result in less beneficiaries being taken off the DHHL beneficiary waitlist. The DHHL is governed by the Hawaiian Homes Commission Act (HHCA) of 1920, as amended. Its mission is to manage the Hawaiian Home Lands trust effectively and to develop and deliver lands to Native Hawaiians. Reducing the amount of new homesteading opportunities runs counter to the stated purposes of the DHHL and HHCA.

• No action and alternative methods that serve the Project objective. The "No action" alternative refers to conditions that would result should the Project not proceed. A "No Action" alternative would fail to provide new homestead opportunities for DHHL beneficiaries and result in continued wait time for DHHL beneficiaries on the waiting lists. As previously mentioned, the DHHL is governed by the HHCA of 1920, as amended, and its mission is to manage the Hawaiian Home Lands trust effectively and to develop and deliver lands to Native Hawaiians. The DHHL maintains waiting lists comprised of beneficiary applicants awaiting an opportunity to be awarded a homestead lease. The beneficiary demand for homesteading opportunities is very high; the current Maui Islandwide Residential Waiting List stands at approximately 4,003, as of January 1, 2026. The "No Action" alternative is in direct conflict with the stated purposes of the DHHL and HHCA. For this reason, the "No Action" alternative is not considered a viable alternative.

DHHL has reevaluated alternatives to building in the wetland and has determined that it has no practicable alternative to wetland development. Mitigation measures will be implemented to minimize adverse impacts to wetland areas. Environmental files documenting compliance with Executive Order 11990 are available for public inspection, review and copying upon request through the email listed in the last paragraph of this notice for receipt of comments.

There are three primary purposes for this notice. First, people who may be affected by activities in the floodplain and wetland and those who have an interest in the protection of the natural environment should be given an opportunity to express their concerns and provide information about these areas. Commenters are encouraged to offer alternative sites outside of the floodplain and wetland, alternative methods to serve the same Project purpose, and methods to minimize and mitigate Project impacts on the floodplain and wetland. Second, an adequate public notice program can be an important public educational tool. The dissemination of information and request for public comment about the floodplain and wetland areas can facilitate and enhance Federal efforts to reduce the risks and impacts associated with the occupancy and modification of these special areas. Third, as a matter of fairness, when the Federal government determines it will participate in actions taking place in the floodplain and/or wetlands, it must inform those who may be put at greater or continued risk.

Written comments must be received by DHHL at the following address on or before August 21, 2026.

Department of Hawaiian Home Lands

Attention: Malia Cox, NAHASDA Compliance Specialist

PO Box 1879

Honolulu, HI 96805

Comments may also be submitted by email via DHHL's consultant at [email protected].