After years of waiting, 200 Native Hawaiian beneficiaries walked out of a Hilo ceremony on Saturday holding what many have been chasing for decades: residential leases in the long-planned Panaewa homestead project. The Department of Hawaiian Home Lands (DHHL) awarded the first wave of leases for the development, which spans roughly 334 acres along Elama Road, just south of Hilo International Airport. The land is slated to be divided into about 400 residential lots in total, and DHHL officials say it will take several years to build out roads, water and sewer, so homes are not expected to be ready for occupancy until about 2031.
Lease Awards In Hilo
According to the Honolulu Star-Advertiser, beneficiaries gathered at the University of Hawaiʻi at Hilo Performing Arts Center, where they were called up to sign paperwork that locks in their project leases. The paper reports that DHHL pulled names from an islandwide residential waitlist and plans to hand out the remaining 200 Panaewa awards in August. Photos from the event show state and DHHL leaders on stage alongside new lessees, marking the shift from planning documents to signed agreements.
The Panaewa Project
Project materials from DHHL describe Panaewa as a roughly 334-acre site that will be built out into about 400 residential lots, with Phase I awards set for July and an overall development timeline running from 2026 through 2031. The agency’s orientation packet includes maps, an offer letter and schedules that point to projected occupancy beginning in 2031. Because these are project, non-parceled leases, actual lot selection and move-in dates will hinge on when infrastructure is finished and county subdivision approvals come through.
Who Got Leases
Many of the recipients have been on the waitlist for decades and described the ceremony as a rare chance to put down roots and stay in Hawaiʻi. Hawaii News Now reported that beneficiaries said the leases would help keep families on-island and noted that DHHL’s waitlist still sits at roughly 29,000 people. The Honolulu Star-Advertiser added that Kuʻuipo Kelekolio accepted a lease on behalf of her aunt and that Gov. Josh Green attended the event.
Why It Matters
The Panaewa awards are one piece of a broader push to whittle down a massive backlog created by decades of underproduction of homesteads promised under the Hawaiian Homes Commission Act. Officials and advocates point to a major $600 million state appropriation in 2023 as a boost that helped jump-start lot production, while warning that more money and more time will still be needed to meet demand, according to the Hawaii Tribune-Herald. The Panaewa leases show DHHL moving from concept plans to paper in hand, giving families a confirmed place in the homestead layout even though it may be years before they can build.
What's Next
DHHL says beneficiaries will be contacted in ranked order to accept project leases, with specific parcel assignments and home construction to follow once roads, water and sewer are installed. Orientation materials from DHHL spell out the response form process, required steps for awardees and the timeline for moving through Phase I and Phase II. The agency has scheduled the second round of awards for next month, which will complete the rollout of all 400 planned lots. For now, families left the Hilo ceremony with signed leases in hand and a clear understanding that turning those documents into front doors and rooftops will be a multi-year effort shared with county and state partners.
