Residential Lessee
Handbook
This handbook was created to provide
residential homestead lessees with
basic information on the roles,
responsibilities and internal processes
the Department of Hawaiian
Home Lands (DHHL) follows. This
handbook will also help lessees
to understand, and comply with,
the administrative rules governing
DHHL, and the lease document terms
and conditions.
This handbook is for general
reference only and is not to be used as
a replacement to the lease document,
the administrative rules, or the
Hawaiian Homes Commission Act.
part one 
                                  
                        
                           
                                    



                                      
                                     
part two 

                                 
                                 
                               
                                     
                   
                                  
                               
                                 
                             

                                  

                                

                

                                   

                             


                       

part three 
                     
                     
                        
                                      
                                
c o n t e n t s
part four 
                              
                        
                           
            
part five 
       
                          
part six 
                                  
part seven 
                                       
                                        

                                       
                                      
                                
part eight 
                         
                               
                   
                   
                   
                                       
                                   
                                      
part nine 
                                    
Aloha nö käkou:
It is my pleasure to write this introduction to the Residential Lessee Handbook
because it contains valuable insights from the Department of Hawaiian Home
Lands to address the needs of native Hawaiian communities.
We hope to provide our emerging leaders of tomorrow with the support,
resources and information they need to fulll the vision of Prince Kühiö. This
handbook will be a useful tool in accomplishing that goal, as we move forward in
building and strengthening communities around the state.
I truly believe native Hawaiians represent the heart and soul of our state, and
their communities must ourish for the good of all our people.
Please accept this handbook with my aloha, gratitude and well wishes.
Linda Lingle
Governor, State of Hawai‘i
d h h l l e s s e e h a n d b o o k1 0
d h h l l e s s e e h a n d b o o k 1 1
p a r t o n e
Leases to native Hawaiians
In order to qualify for a new lease award on Hawaiian Home Lands, you
must be at least 50% native Hawaiian, and be 18 years of age.
The lease is a document that lists your rights and duties as a homesteader and conditions under which you may use
the land. As a lessee, you will be leasing the property for a time period of 99 years. The cost of the lease is $1.00 per
year. When the expiration of the 99-year term of your lease approaches, you will have the option of extending the lease
for an additional 100 years at the same rent or to surrender the lot back to DHHL.
History of DHHL
The Department of Hawaiian Home Lands is governed by the Hawaiian Homes Commission Act of 1920, enacted
by the U.S. Congress to protect and improve the lives of native Hawaiians. The act created a Hawaiian Homes
Commission to administer certain public lands, called Hawaiian home lands, for homesteads.
The Act was incorporated as a provision in the State Constitution in 1959 when Hawai‘i was granted statehood.
Responsibility for the Commission and the Hawaiian home lands was transferred to the State at that time. Except for
provisions that increase benets to lessees or relate to administration of the Act, the law can be amended only with the
consent of Congress.
Hawaiian Homes Commission
The Commission is composed of nine members: three are residents of the City and County of Honolulu, two
are residents of the Hawai‘i County (East Hawai‘i and West Hawai‘i), two are residents of Maui County (Maui
and Moloka‘i), one resident of Kaua‘i County, and the Chairman of the Hawaiian Homes Commission. The
Commissioners must be residents of the State for at least three years prior to their appointment and at least four of the
members are one-fourth Hawaiian. The governor appoints the Chairman and each Commissioner to a four-year term.
The Commission meets at least once a month. The Commission must also meet once a year on the islands of Kaua‘i,
Hawai‘i, Moloka‘i, and Maui, and at various homestead communities on each island as practicable.
d h h l l e s s e e h a n d b o o k1 2
Overview of the Department
The primary responsibilities of the Department of Hawaiian Home Lands are to serve its beneciaries and to manage
its extensive land trust. The land trust consists of over 200,000 acres on the islands of Hawai‘i, Maui, Moloka‘i, Läna‘i,
O‘ahu, and Kaua‘i.
DHHL provides direct benets to native Hawaiians in many ways. Beneciaries may receive 99-year homestead leases
at $1 per year for residential, agricultural, or pastoral purposes. These leases may be extended for an aggregate term
not to exceed 199 years. Beneciaries may receive nancial assistance through direct loans, insured loans, or loan
guarantees for home purchase, construction, home replacement, or repair.
In addition to administering the homesteading program, DHHL leases trust lands not in homestead use at market
value and issues revocable permits, licenses, and rights-of-entry. The income from these enterprises is used to
supplement DHHL’s programs, including continued homestead development.
DHHL provides its beneciaries more services through a variety of community and individual empowerment
initiatives, including the Native Hawaiian Development Program (NHDP), Home Owner Assistance Program (HOAP),
and the Hawaiian Homes Commission Scholarships.
Five Ofces Provide Support Services to the Department
The Ofce of the Chairman (OCH) manages the daily operations of the Department, sets directions, and provides
leadership support to all DHHL ofces and divisions. Additionally, OCH is responsible for supporting the
Commission. The Chairman of the Commission also serves as the Director of the Department. Ph. (808) 586-3801
The Administrative Services Ofce provides support in the areas of personnel, budgeting, program evaluation,
information and communication systems, risk management, facilities management, clerical services and other
administrative services. This ofce also provides support services in preparation of legislative proposals and
testimonies, coordinates the preparation of reports to the Legislature and facilitates the rule-making process.
Ph. (808) 586-3811
The Fiscal Ofce is responsible for the maintenance of the accounting system that provides administration with timely
nancial information for evaluating past performance, making current decisions, and planning future operations. The
Fiscal Ofce plans, organizes, and carries out accounting and scal activities that support the department’s programs.
Ph. (808) 586-3808
d h h l l e s s e e h a n d b o o k 1 3
The Planning Ofce is responsible for conducting research and planning studies related to the development of
policies, programs and projects beneting native Hawaiians, as dened under the Hawaiian Homes Commission Act.
Additionally, the Planning Ofce defends the Hawaiian Home Lands Trust and advocates for the restoration of trust
claims. The Native Hawaiian Development Program makes awards to non-prot organizations to support community
self-determination, provide capacity building, and assist native Hawaiians in education and nancial literacy.
Ph. (808) 586-3836
The Information and Community Relations Ofce is responsible for planning, organizing and carrying out public
information and community relations programs and projects for the department. It also provides advice and assistance
to the Commission and staff on public relations and public information matters. Ph. (808) 586-3840
Three Divisions Carry Out the Department Programs
The Land Development Division develops trust lands for homesteading and income-producing purposes by developing
properties for residential, agricultural, pastoral, and economic use. The division carries out these responsibilities
through its three operating branches. Ph. (808) 586-3819
The Land Management Division manages those Hawaiian home lands not used for homestead purposes. The Land
Management Division manages unencumbered lands to generate revenues and to keep the lands productive while
minimizing the occurrence of vegetative overgrowth, squatting, and illegal dumping. The Land Management Branch
also conducts studies on land acquisitions and exchanges and provides for the management and disposition of non-
homestead lands and properties. Ph. (808) 586-3823
The Homestead Services Division processes homestead applications; manages activities in leasing homestead lots
for residential, agricultural, and pastoral purposes. The Homestead Services Division also provides homestead
lessees loans and other nancial assistance to homestead lessees. This division has four branches that help meet its
responsibilities: Ph. (808) 586-3834
The Homestead Applications Branch is responsible for determining the applicant’s native
Hawaiian qualication, maintaining applicants’ records and certifying an applicant’s
eligibility for residential, agricultural, and pastoral awards. Ph. (808) 586-3830
The Loan Services Branch administers the department’s loan origination, loan servicing and
loan collection programs. As authorized by the Hawaiian Homes Commission Act of 1920,
DHHL provides loans to homestead lessees as mortgage loans, construction loans, home
repair loans, and payment of real property taxes. Ph. (808) 586-3827
d h h l l e s s e e h a n d b o o k1 4
The District Operations Branch has district ofces in West and East Hawai‘i, Maui,
Moloka‘i, O‘ahu, and Kaua‘i. The function of the District Operations Branch encompasses
a variety of services that enable homestead lessees to support their community associations
and develop their communities and neighborhoods. Ph. (808) 586-3833
The Housing & Awards Branch constructs houses on unawarded lots and awards houses to
nancially qualied applicants on the residential waiting lists. Ph. (808) 586-3834
Chairman
The Chairman is the head of the Department of Hawaiian Home Lands and the Hawaiian Home Lands Commission.
The Chairman has full charge of and responsibility for the administration and execution of all actions approved by
the Commission. All orders and actions of the Commission are authenticated or signed by the Chairman or the
deputy. The Chairman also signs all licenses, leases, loan contracts, contracts with other governmental agencies, and
Commission resolutions.
District Offices
The district ofces focus on customer service to native Hawaiian homesteaders. These include facilitating and
processing lessee requests for lease conveyances through successorships or transfers, subdivision of homestead lots,
home improvement permits, updating lessee les and successorship designations, voluntary surrender of leases and
enforcing compliance with the lease terms. The district ofces, with the exception of O‘ahu, also assist prospective
applicants through the application process. Ph. (808) 586-3833
The main ofce of the Department of Hawaiian Home Lands is located at:
1099 Alakea Street, Suites 2000 & 1200
Honolulu, Hawai‘i 96813
The mailing address for the Department of Hawaiian Home Lands and the Hawaiian Homes Commission is:
P.O. Box 1879
Honolulu, HI 96805
The ofce hours for the Department of Hawaiian Home Lands are:
7:45 a.m. to 4:30 p.m., Monday through Friday
d h h l l e s s e e h a n d b o o k 1 5
West Hawaii District Office
Mailing
P.O. Box 125
Kamuela, Hawai‘i 96743
Address
64-756 Mamalahoa Highway
Kamuela, Hawai‘i 96743
Phone (808) 887-6053
Fax (808) 887-6056
East Hawaii District Office
160 Baker Avenue
Hilo, Hawai‘i 96720
Phone (808) 974-4250
Fax (808) 974-4255
Kauai District Office
3060 Eiwa Street, Room 203
Lïhu‘e, Hawai‘i 96766
Phone (808) 274-3131 or (808) 274-3132
Fax (808) 274-3133
Maui District Office
655 Kaumuali‘i Street, Suite 1
Wailuku, Hawai‘i 96793
Phone (808) 760-5120
Fax (808) 760-5122
Molokai District Office
Mailing
P.O. Box 2009
Kaunakakai, Hawai‘i 96748
Address
600 Maunaloa Highway, Suite D-1
Kaunakakai, Hawai‘i 96793
Phone (808) 560-6104
Fax (808) 560-6665
Neighbor island district ofces are located as follows:
d h h l l e s s e e h a n d b o o k1 6
p a r t t w o
Allowed activities on, and uses of, your
homestead lot
Industrial Activities
Industrial activities are not allowed on homestead lots.
Commercial Activities
Homestead lots may not be used for commercial activities if such activities constitute a nuisance to neighbors, the
community, and/or the general public as determined by DHHL and the Commission.
Building Requirements
Building structures or improvements may be constructed on homesteads with the written approval from the
Department of Hawaiian Home Lands. In order to obtain the necessary approval for building structures and
improvements, the lessee must submit a plan as to the design, materials, and probable value and use of the structure
to be built on the leasehold.
Building structures or improvements must meet building and zoning codes and other ordinances and regulations of
the respective counties. The construction of building structures or improvements need to receive DHHL approval prior
to installation.
Although the responsibilities of checking construction plans and issuing building permits are county functions,
DHHL plays an integral role within this process. Receiving DHHL approval assures the lessee that, in the event the
lease is surrendered or cancelled, the value of all improvements on the property will be appraised and paid to the lessee
upon surrender or cancellation.
For more information, advice, or assistance on building requirements, please contact your local District Ofce.
d h h l l e s s e e h a n d b o o k 1 7
Lease Transfers
With the written approval of the Chairman, lessees may transfer their leasehold interest to any qualied native
Hawaiian individual who is at least eighteen years old, and who is able to assume any outstanding indebtedness
on the lease.
To transfer a lease, the lessee must rst complete DHHL’s “Lease Transfer Form” (Appendix A) which is available at
the local DHHL District Ofce. The transferrer and the transferee must accurately complete the form with all required
information. Once DHHL receives the completed form, DHHL will verify the blood quantum of the transferee. Please
keep in mind that the burden of proof for blood quantum belongs to the transferee, and not DHHL. DHHL also checks
for any outstanding loans afxed to the leasehold. Once these avenues are cleared, DHHL drafts an “assignment of
lease” which the transferrer, transferee, and the Chairman signs respectively.
Keep in mind that the lease transfer process takes time. If information is not submitted accurately, blood quantum
is not cleared, or if there are outstanding loan balances, grants, lease rent, real property taxes, or other nancial
indebtedness on a leasehold, the lease transfer process will be delayed.
Transfer a Portion of Your Lease (Subdivision)
Lessees can petition the Commission to approve a subdivision of their residential lot and transfer the subdivided
portion for the remaining term of the lease to any qualied native Hawaiian individual who is at least eighteen years
old. Considerations for subdividing existing lots include zoning and impact on infrastructure. Both lots must conform
to county zoning standards.
Prior to any construction occurring, plans for the construction of the house must be approved by the DHHL Chairman.
Lessees must obtain the respective county’s nal subdivision approval as well. Lessees will also need to pay
for any costs incurred in the processing and obtaining of the subdivision. This includes, but is not limited to,
sewer line, electricity, and water installation. DHHL is not required to nance the construction of the house on the
transferred portion.
Please contact your local District Ofce for additional information if you plan to transfer a portion of your lease.
Exchanging Leases
A lessee may also exchange leases with another HHL lessee, if desired. To exchange leases, both lessees must go
the local District Ofce or DHHL’s main ofce and complete the “Homestead Lease Exchange Request Form”
(Appendix B).
d h h l l e s s e e h a n d b o o k1 8
Occupancy Requirements
The lessee must occupy the residential homestead lot for the duration of the lease. For newly awarded lots, the time
period by which a lessee is required to occupy a homestead lot is stipulated in the lease. Normally, this time period is
one year from the date of lease signing, unless your lease is an undivided interest award, or states otherwise.
Other Requirements
Two or more leases
No DHHL lessee may possess 2 or more residential lots. If an existing residential lessee acquires an additional
residential lease through successorship, award to the spouse, lease transfer, etc., that lessee must surrender the lease
back to DHHL, or transfer the lease to another native Hawaiian applicant or a family member who is not a
residential lessee.
Easements
In certain cases, DHHL may need to repair and/or x utilities or infrastructure in a homestead area. DHHL may allow
easements on homestead lots for the construction and repair of utilities. Prior to granting easements, DHHL will
notify the lessee, and establish that such easements are for the “public good.”
Reserved rights
DHHL reserves all mineral and water rights to the homestead area, and stewardship over prehistoric and historic
artifacts and burials on homestead lands.
If you discover Hawaiian artifacts or burials on your property, please contact your District Ofce as soon as possible.
Please do not disturb or remove the artifact or burial from the ground.
Maintenance and utility service on your lot
Lessees must pay for all utility services on the lot. Homestead lots should be kept in a clean, sanitary, and orderly
condition at all times.
Insurance
The lessee’s home must have re insurance coverage at all times. If you have an outstanding loan, the lender should be
named as “additionally insured.”
d h h l l e s s e e h a n d b o o k 1 9
Other Useful Information
Changing a lessee’s personal information
Should a lessee change his/her name, mailing address, or Social Security Number, it is vital that the lessee notify the
Department of Hawaiian Home Lands to ensure that the lessee’s le is updated as well. The lessee should visit the
local District Ofce or DHHL’s Main Ofce to ll out an “Information Change Notication Form” (Appendix C). Once
the form is completed, the information stored within the lessee’s le will be updated with the new information.
Consent to release information
Lessees may allow family members to utilize the information in the lessee’s le to assist them in verifying blood
quantum and thereby qualifying family members as DHHL Applicants.
To allow family members to access the lessee’s le, the lessee must visit the local District Ofce or DHHL’s Main
Ofce and complete the “Consent to Release of Information Form” (Appendix D).
d h h l l e s s e e h a n d b o o k2 0
p a r t t h r e e
Mortgage loans
DHHL may make mortgage loans to you for the repair, maintenance,
purchase, or construction of homes on Hawaiian home lands.
Mortgage Loan Programs / Opportunities
Mortgage loan programs that are available on homestead lands are either insured or guaranteed. The following
programs are available: Conventional FHA 247, 184-A, VA Direct, USDA, Habitat for Humanity, etc.
For more information on available loan opportunities and qualied lenders, please call our Homestead Services
Division at (808) 586-3834.
Home Repair Loans / Improvement Loans
Home Repair Loans are available for needed repairs and improvements to your home. For more information on home
repair loans or improvement loans, please call our Loan Services Branch at (808) 586-3827.
DHHL Direct / Construction Loans
DHHL direct loans may be available to lessees who have been declined by mortgage companies. Applicants will be
reviewed on a case-by-case basis and must be nancially qualied. These loans are approved, serviced, and nanced
100% by DHHL. Applications for direct loans are provided by DHHL. Lessees may obtain a direct loan application
from their local District Ofce or the DHHL Honolulu ofce. All applications can be submitted to DHHL or any
district ofces of DHHL.
Fees may be assessed for costs incurred by DHHL in the processing of your application.
d h h l l e s s e e h a n d b o o k 2 1
Payments
Depending on the type of loan received, monthly payments will be made to the nancial institution you borrowed the
money from. If you have a direct loan from the DHHL, monthly payments will be made to DHHL. You may deliver
your payments to any District Ofce or the DHHL Honolulu ofce. You may also mail your payments to the DHHL
Honolulu ofce.
Loan Delinquencies
Whenever a borrower is more than one hundred twenty days (120) delinquent on direct loan repayments, the
Department may start lease cancellation proceedings as authorized by the Hawaiian Homes Commission Act.
Should you fall delinquent in your direct loan payments, please contact your respective loan ofcer or your local
District Ofce.
If you have a loan that is insured or guaranteed by the Department and fall delinquent in payments, the loan will
be assigned to the Department by the lending nancial institution. The Department may start lease cancellation
proceedings as authorized by the Hawaiian Homes Commission if the loan delinquency cannot be resolved.
Should you fall delinquent in payments on loans that are insured or guaranteed by the Department, it is important that
you contact the nancial institution that nanced your loan for assistance in curing the delinquency.
d h h l l e s s e e h a n d b o o k2 2
p a r t f o u r
Successorships
Designation of a Successor
It is very important that homestead lessees le with the Department a “Designation of Successor Form” to identify
who they want to succeed to their homestead lease and leasehold interest upon their death.
It is recommended that lessees designate a successor or successors at the time of execution of the lease. The lessee
must le the designation in writing at DHHL and DHHL must acknowledge the designation in order for the
designation to be deemed led.
Lessees may designate the following relative or relatives to succeed to the lease:
1. Husband, wife, brother, sister, children or grandchildren who are at least one-quarter Hawaiian; or
2. Father, mother, widows or widowers of the children, widows or widowers of the brothers and sisters, or nieces
and nephews who are at least one-half Hawaiian.
Lessees may change the designation of successor or successors at any time. However, the lessee must le the change
of designation in writing at DHHL and DHHL must acknowledge the change of designation in order for the change of
designation to be deemed led.
The Department determines whether a designated successor is qualied to be a lessee of Hawaiian Home Lands.
To designate or change a successor, the lessee must go to the local District Ofce or DHHL main ofce to ll out the
“Designation of Successor Form” (Appendix E). The completion of the form must be witnessed by third parties who
are not named on the form. Once the form is completed and signed by the lessee and the witness, the form is signed
by the Chairman and ratied by the Hawaiian Home Lands Commission. The “Designation of Successor” form is led
in your lessee le and kept strictly condential. You, as a lessee, are provided a copy of the “Designation of Successor”
form for your personal records.
The Department will process the required documents to convert the lease to an eligible, qualifying successor(s) named
in the latest designation form led with the Department. By operation of law, the designated successor, if qualied,
succeeds to the lease without the need for probate of the lessee’s leasehold interest.
d h h l l e s s e e h a n d b o o k 2 3
Designating More Than One Successor
In order to minimize potential family issues in the future, the Department recommends designating one successor.
However, lessees may designate more than one successor. There are three types of tenancies:
Joint Tenancy — Designating two or more persons who are equally entitled to an undivided interest in a specic
piece of real property with the distinguishing characteristic of the right of survivorship. Thus, upon the death of
one of the joint tenants, his or her rights and interest pass to the surviving tenants or tenants without the need for
probate proceedings.
Tenancy by the Entirety — Similar to joint tenancy except that the persons must be husband and wife.
Upon the death of either, the survivor automatically acquires title to the share of the deceased spouse free and clear
of the claims of heirs and creditors of the deceased spouse. If they become divorced, the parties would then become
tenants in common.
Tenancy in Common — An estate of land is held by two or more persons, with the outstanding feature that upon the
death of one party, his or her share descends to his or her designated successors. A tenant in common holds an estate
in land by a separate and distinct title, but with unity of possession.
If a Successor is Not Designated
If a lessee passes away, and has not designated a qualied successor, DHHL will publish a public notice at least once a
week for four successive weeks in a newspaper of general circulation in the State. The notice shall state that all persons
claiming to be relatives of the lessee qualied to succeed to the lease must present themselves to DHHL with proof of
their qualications within four months from the rst day of publication of the notice. These potential successors must
complete the “Response to Public Notice - Request to Succeed to Lease Form” (Appendix F).
Those persons failing to present themselves within four months from the rst day of publication of the notice shall be
forever barred from succeeding to the lease in question.
The Department may select a successor from the following qualied relatives of the deceased lessee:
First, the surviving spouse who is at least 25% Hawaiian.
Second, the children who are at least 25% Hawaiian.
Third, the grandchildren who are at least 25% Hawaiian.
Lastly, father or mother, widow or widowers of the children, brothers and sisters, widows or widowers
of the brother and sisters, or nieces or nephews who are at least 50% Hawaiian.
If no selection can be made, the lease is cancelled. The land subject to the lease shall resume its status as unleased
Hawaiian home lands, and the property will be leased to another native Hawaiian.
d h h l l e s s e e h a n d b o o k2 4
Designation of a Person or Persons to Receive
Net Proceeds
If the lessee has a spouse or children who do not qualify to succeed to the lease (i.e. less than 25% Hawaiian), the
lessee may designate one or more of them to receive the net value of the leasehold improvements. From the appraised
value of the leasehold improvements, the Department deducts any debt owed to the Department, debt owed for
property taxes, any debt incurred that was guaranteed by the Department, and any debt for which the leasehold
was used. The balance is paid to the surviving spouse, child, or children whom the lessee designated. If the lessee
designates more than one person to receive the net proceeds, each person will receive an equal portion, unless the
lessee designates otherwise by noting the percentage of net proceeds each is to receive.
d h h l l e s s e e h a n d b o o k 2 5
p a r t f i v e
Homestead associations
A bonade homestead community association can apply for membership into the State Council of Hawaiian
Homestead Associations (SCHHA) by submitting a letter to the president of the ahupuaÿa of the island to which the
homestead community association is located. Consequently, the president of the ahupuaÿa will submit a letter of
request for membership into the SCHHA to the Chairman. Membership is voted on by SCHHA members at quarterly
meetings, special meetings or the SCHHA’s annual convention. Membership with the SCHHA is optional.
In 1987, SCHHA was established to provide a mechanism through which homesteaders could effectively voice their
mana‘o on matters and issues of concern to all homesteaders. Since 1987, the SCHHA has grown and transitioned into
a viable statewide homestead community-based organization consisting of 24 organizations representing over 30,000
homesteaders. There are however, several homestead associations that have chosen not be a member of the SCHHA.
The SCHHA is governed by a ve-member Executive Council responsible for policy and decision-making. The
Executive Council members are the presidents of each Island Council or ahupua‘a.
For more information, please call the DHHL main ofce at 586-3834 or visit SCHHAÿs website at:
http://www.schha.com
Declarations, Covenants, Conditions, and Restrictions
(DCC&Rs)
In certain homestead communities, a set of rules and guidelines are established for the operation and maintenance of
a homestead community. These rules and guidelines are called DCC&Rs.
DCC&Rs help a homestead community to enhance and protect the value, desirability, and attractiveness of the
homestead community, create mutual and equitable servitude upon each lessee, and create reciprocal rights and
obligations with current and future lessees.
d h h l l e s s e e h a n d b o o k2 6
A community association controls and enforces the DCC&Rs to preserve, maintain, enhance and protect the value
of property and amenities within a homestead community. The DCC&R, in turn, determines the structure of a
community association and establish obligations and responsibilities of its members, elected ofcers, and directors.
If you reside on a homestead community with established DCC&Rs, membership to the association is required, which
may constitute the payment of membership fees. Lessees are responsible for adherence to any provisions set
forth in the DCC&Rs, which ensures rights of enjoyment, access and maintenance of common areas, and compliance
to specic restrictions.
If an association member fails to comply with any rules set forth in the DCC&Rs, the homestead association’s Board
of Directors has the right to impose monetary nes upon the lessee for violation of DCC&Rs. Furthermore, the
unpaid amount of nes against the lessee shall constitute a lien against the residential lot which may subject to lease
cancellation. Should a violation occur, specic policies and procedures are covered in the DCC&Rs regarding due
process, violation notication, penalties, and proceedings.
Since DCC&Rs are governed by the community association, the association’s Board of Directors has the right to add,
revise, or amend any section of the DCC&Rs.
Hui Käkoÿo ÿÄina Hoÿopulapula
Hui Käkoÿo is a non-prot organization that was formed to provide applicants with an organization to support the
applicantsÿ interests during the period they await a lease award.
For more information on Hui Käkoÿo, please call the DHHL main ofce at 586-3834.
d h h l l e s s e e h a n d b o o k 2 7
p a r t s i x
Real property taxes
Lessees are required to pay county real property taxes on the eighth year
after the award of the residential lot.
The Hawaiian Homes Commission Act provides a seven-year exemption to real property taxes for newly awarded
leases. After the exemption period, DHHL lessees are required to pay real property taxes. The real property tax amount
varies from county to county. Please check with your respective county for real property tax assessment amounts.
Some counties may impose sanctions for non-payment of real property taxes. Lessees who continue to be delinquent
in their payments are subject to substantially greater penalties. Delinquent taxpayers are encouraged to settle their
accounts with the Real Property Tax Collection ofces of their respective counties to avoid accruing penalty and
interest charges.
To contact your Real Property Tax Collection ofce, please call:
Hawai‘i
East Hawai‘i (808) 961-8201
West Hawai‘i (808) 327-3540
Kaua‘i
(808) 241-6222
Maui, Moloka‘i and Läna‘i
(808) 270-7297
O‘ahu
(808) 527-5511
d h h l l e s s e e h a n d b o o k2 8
p a r t s e v e n
Lease violations and complaints
Lessees are responsible for maintaining their premises from re, theft, and
vandalism. Lessees must comply with all laws and the requirements of the
lease at all times. Also, lessees are responsible for the actions of all persons
residing or visiting the lessees’ premises.
If a complaint is led, DHHL has the right to inspect the property to ensure compliance with health
and safety standards.
Drug Use
The Department of Hawaiian Home Lands does not tolerate drug use or drug solicitation on Hawaiian Home Lands.
If drug use or drug solicitation is discovered on a leasehold property, the lease for that property may be cancelled. To
report any illegal drug activities occurring on Hawaiian Home Lands, please contact your local police department.
Trash
Lessees must keep the property in a clean, sanitary, and orderly condition. Dumping, improper or offensive use of the
property is strictly forbidden.
To report any trash violations, please contact your local District Ofce. On O‘ahu, please contact our Enforcement
Branch at (808) 586-3848.
Vandalism
To report occurrences of vandalism on Hawaiian Home Lands, please contact your local police department as the
primary point of contact. Please also notify your local District Ofce. On O‘ahu, please contact our Enforcement
Branch at (808) 586-3848.
d h h l l e s s e e h a n d b o o k 2 9
Trespass
To report trespassing on Hawaiian Home Lands, please contact your local police department as the primary point of
contact. Please also contact our Enforcement Branch at (808)586-3848.
Other Lease Violations
If you witness or are aware of any serious lease violations or criminal activity on Hawaiian Home Lands, please contact
your local police department. Please also contact our Enforcement Branch at (808)586-3848.
d h h l l e s s e e h a n d b o o k3 0
p a r t e i g h t
Contested case hearings
Should a situation arise where a lessee is found to be in violation of a State, County, or Federal law; a condition in the
lease document; sections 208, 209, 215, or 216 of the Hawaiian Homes Commission Act; or intentional falsication
of material information by the lessee on an application for loan forms submitted to the Department, the Department
shall request a contested case hearing to resolve the situation or cancel the lease. No lease shall be cancelled without
rst affording the lessee the right to due process.
Any person or agency (including DHHL) may request a contested case hearing and shall have the right and full
opportunity to assert a claim provided that the claim is based on a law or rule over which DHHL has jurisdiction.
A contested case hearing will not be held on matters involving a private controversy addressable in the courts and
where the public interest is not involved, or where it is clear that there has been no violation of the law or any rule of
the Commission.
The contested case hearing allows the lessee an opportunity to protect his or her interests in their lease. A settlement
may be proposed at any time before or during a contested case hearing in order to encourage and to provide
opportunities for settlement of disputes.
Request for a Contested Case Hearing
The Department prepares a submittal to the Hawaiian Homes Commission recommending that a contested case
hearing be held. If the contested case hearing is approved by the Commission, the Department prepares and sends by
Certied Mail, the following documents to the Lessee:
a. Letter from the Chairman notifying the lessee of the scheduled contested case hearing (HH-39).
b. HH-39A, Notice of Hearing.
c. HH-39B, Statement of Questions Presented.
d. HH-39C, Preliminary Statement of Alleged Facts.
e. Any other papers required by law to be served by the Commission.
d h h l l e s s e e h a n d b o o k 3 1
Contested Case Hearing
A hearings ofcer is designated by the Commission or Chairman to hold a contested case hearing and to make a
recommended order in a case. The hearings ofcer examines witnesses and evidence, issues subpoenas, regulates the
course and conduct of the hearing, and makes recommended decisions to the Commission in writing to be acted upon
by the Commission.
Hearings Officer Drafts a Recommended Order
The hearings ofcer who presided at the hearing makes and les a recommended order. All ndings, conclusions and
orders recommended by the hearings ofcer are based upon the record and supported by substantial evidence. The
order includes separate ndings of fact and conclusions of law as well as a rationale based on all the material presented
on the record. A copy of the hearings ofcer’s recommended order is served to all parties.
Recommended Order Presented to Commission
Once the recommended order is led with the Commission, the Commission grants the lessee an opportunity to speak
to the Commission. The Commission will consider the argument(s), evidence, and the ndings in the recommended
order, and renders its nal Decision and Order.
Decision and Order Adopted by the Commission
The Decision and Order is the formal document stating the Commission’s decision. The Commission may cancel
a lease in a Decision and Order or allow a lease to continue pending certain terms and conditions.
If the Decision and Order calls for the cancellation of a lease, the document will set the terms in which a lessee must
vacate the premises.
If the Decision and Order allows a lease to continue pending certain terms and conditions, the document will set the
terms and conditions that the lessee must abide by. Should a lessee not abide by the terms and conditions set in the
Decision and Order, the lease will be cancelled.
Once the Commission has rendered its Decision and Order, the Department will have the responsibility for
monitoring the lessee’s compliance to the Decision and Order.
d h h l l e s s e e h a n d b o o k3 2
Surrender
For whatever reason, a lessee may surrender his/her lease back to DHHL. The lessee’s intent to surrender the
leasehold must be done in writing. Also, a “Lease Rescission and Surrender Form” (Appendix G) must be completed.
DHHL will forego acceptance of a surrender until a new lessee is found and it is determined by the Department that
sufcient funds are available to meet the payments required. At all times until acceptance of surrender, the lessee
will remain responsible for the leasehold and any improvements thereon, and shall remain responsible for all taxes,
assessments and charges of whatever kind and nature.
Upon the cancellation or surrender of a homestead lease, if DHHL determines that any structure on the premises is in
such disrepair that demolition of the structure is required, the lessee shall be allowed to sell the structure within ninety
days from the date of the cancellation or acceptance of surrender. Any proceeds from the sale of the structure will be
rst used to satisfy any indebtedness to the Department, taxes, or any other indebtedness the payment of which has
been assured by the DHHL, or any costs incurred by the DHHL for upkeep and cleaning of the leased premises. If the
lessee does not sell or remove the structure, DHHL may demolish the structure.
Abandoned Lots
If a lessee has abandoned a Hawaiian Homestead lot by failing to use or occupy the premises or cannot be located
after at least two attempts to contact the lessee by certied mail, DHHL may cancel the lease. DHHL will publish a
public notice for four successive weeks in a newspaper of general circulation in the State. The notice shall direct the
lessee to present himself or herself to DHHL within one hundred twenty days from the rst day of publication of the
notice. In addition, DHHL shall post a public notice on the abandoned lot. If the lessee cannot be located, the lease
may be cancelled.
d h h l l e s s e e h a n d b o o k 3 3
Appraisals
If a lessee surrenders his/her lease, or if a lessee dies leaving no one qualied to be successor, or if the Department
is unable to designate a successor, or if the Department cancels a lease, DHHL will appraise the value of the
improvements to compensate the appropriate recipient or the previous lessee. The amount of compensation will be
determined by the appraisal value less the following:
1. Any indebtedness to the Department;
2. Taxes;
3. Any other indebtedness veried by the Department;
4. Any costs incurred by the Department for the upkeep and cleaning of the leased premises; and
5. Any costs incurred by the Department for the removal of any crops or improvements.
d h h l l e s s e e h a n d b o o k3 4
d h h l l e s s e e h a n d b o o k 3 5
p a r t n i n e
Appendix
Appendix A                                           
Appendix B                               
Appendix C                                
Appendix D                                
Appendix E                                      
Appendix F                   
Appendix G                                  
d h h l l e s s e e h a n d b o o k3 6
appendix a: 
d h h l l e s s e e h a n d b o o k 3 7
appendix b: 
d h h l l e s s e e h a n d b o o k3 8
appendix c: 
d h h l l e s s e e h a n d b o o k 3 9
appendix d: 
d h h l l e s s e e h a n d b o o k4 0
appendix e: 
d h h l l e s s e e h a n d b o o k 4 1
appendix f: 
d h h l l e s s e e h a n d b o o k4 2
appendix g: 
d h h l l e s s e e h a n d b o o k 4 3
OFFI CE
1099 Alakea Street, Suite 2000 & Suite 1230
Honolulu, HI 96813
MAIL ING
P.O. Box 1879
Honolulu, Hawai‘i 96805
PHON E
808-586-3800
WEB SITE
www.hawaii.gov/dhhl