Final Notice and Public Explanation of a Proposed Activity in a Federal Flood Risk Management Standard Designated Floodplain and Wetland in Nāʻiwa Agricultural Subdivision, Molokaʻi

To:  All interested Agencies, Groups and Individuals

This is to give notice that the Department of Hawaiian Home Lands (DHHL) has conducted an evaluation as required by Executive Order(s) 11988, as amended by Executive Order 13690, and Executive Order 11990, in accordance with HUD regulations at 24 CFR 55.20 in Subpart C Procedures for Making Determinations on Floodplain Management and Wetlands Protection. The activity is funded under the Native American Housing Block Grant Program under HUD grant number 23HBGHI0001.

The proposed project is located on 341 acres in the Nāʻiwa Agricultural Subdivision at TMK (2) 5-2-004:001, 002, 004, 007, and 046 and (2) 5-2-003:001 in Hoʻolehua and Pālaʻau on the Island of Molokaʻi, in the County of Maui. Although the proposed project is within Zone X on FEMA FIRM Panels 1500030160F and 1500030170F, at the request of Maui County, DHHL commissioned their own flood study to map the 1% annual chance floodplain on the site to more closely evaluate flood risk. In addition to the 1% annual chance flood study, DHHL is further augmenting the flood study to map the 0.2% annual chance floodplain, which will serve as the basis for determining the Federal Flood Risk Management Standard (FFRMS) floodplain.

The extent of wetland area was determined using the National Wetlands Inventory (NWI) web-based map tool, which identified a riverine wetland, the Kāluapeʻelua Gulch, that branches throughout the site.

The proposed undertaking includes the expenditure of Native American Housing Assistance and Self Determination Act (NAHASDA) funds for the vertical construction of single-family homes and appurtenances on up to 66 undeveloped residential lots within a 341.2-acre residential subdivision. Installation of residential infrastructure will include laterals for connections from main infrastructure lines including water, communication, and energy to the individual homestead parcels. The project will also include construction of a DOH approved individual wastewater system for each residential home built. It may also include drainage, grubbing, grading, and trenching within the homestead parcels as necessary to prepare for residential unit construction and to ensure adequate drainage of the lot. NAHASDA funds may also be used for administrative and residential support tasks such as homeowner education, mortgage or utility assistance, etc. The improvements will support DHHL beneficiaries through the provision of essential services necessary for agricultural homesteading.

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/wetland:

1. Develop agricultural lots at a different location on DHHL lands, outside the floodplain and wetland areas. This alternative was considered, and although homestead development is occurring on many of the alternative available DHHL sites, only a limited amount of land in DHHL’s inventory is suitable for housing development. This site was selected in part due to its history of use by DHHL beneficiaries for subsistence farming. It is also in close proximity to other DHHL homesteads, and the project area is not prohibitively constrained by environmental conditions.
2. No action. This alternative would involve not developing the Nāʻiwa agricultural lots. This would not accomplish the project’s objective of providing infrastructure improvements to DHHL beneficiaries and would fail to meet DHHL’s mission of effectively managing the Hawaiian Home Lands trust by developing and delivering land to native Hawaiian beneficiaries, especially considering the urgent need to create opportunities for agriculture and homesteading. As of June 1, 2026, there were approximately 2,133 native Hawaiian beneficiaries on the DHHL Moloka‘i wait list, of which 1,112 were applicants for an agricultural lease.

To minimize adverse impacts, no federally funded structures will be built in areas within the FFRMS floodplain which has been determined by DHHL’s flood study to be the 0.2% annual chance floodplain. No new construction (including grading, clearing, draining, dredging, channelizing, filling, diking, impounding, and related activities and construction of any structure or facilities, including the siting of new manufactured housing units) will occur within an NWI-mapped wetland. Additionally, if any project activities as detailed above are determined to occur within 100 ft of an NWI-designated wetland, DHHL will initiate further consultation with the US Fish and Wildlife Service to assess and avoid or mitigate any potential impacts to wetlands and species common to wetland habitats.

DHHL has reevaluated alternatives to the proposed project, parts of which are located in floodplains and wetlands, and has determined that it has no practicable alternative but to ensure that no federally funded structures will be built within the FFRMS floodplain or wetlands. Environmental files documenting compliance with Executive Order 11988, as amended by Executive Order 13690, and Executive Order 11990, are available for public inspection, review and copying upon request at the times and location delineated 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 wetlands and/or floodplains, 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. Second, an adequate public notice program can be an important public educational tool. The dissemination of information and request for public comment about wetlands and floodplains can facilitate and enhance Federal efforts to reduce the risks 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 wetlands and floodplains, 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].