State, Feds At Odds Over Extension Of Hawaiian Homeland Leases 0 The Legislature may need to resolve an ongoing dispute between the Department of Hawaiian Home Lands and the federal Department of the Interior over commercial leases.
A dispute between the federal government and Hawaii over land leases could stretch well into next year and beyond, likely requiring intervention from state lawmakers and eventually congressional approval.
The disagreement between the federal Department of the Interior and the state Department of Hawaiian Home Lands arises out of a law adopted in 2021 that would allow the state’s lessees – some who already have 55- or 65-year leases – to apply for lease extensions of up to 40 years if they agree to make substantial improvements to their properties.
The law, known as Act 236, was intended for tenants of the Department of Land and Natural Resources to provide businesses with long-term stability to make it easier to secure financing. Questions about how it applies to DHHL commercial leases cropped up recently at a series of Hawaiian Homes Commission meetings that contemplated extending the lease of the Prince Kuhio Plaza mall in Hilo.
