HONOLULU — Two federal housing-assistance programs are halting grants and loan guarantees for Native Hawaiian housing at some locations on the Big Island because of concerns over unexploded World War II ordnance.
The funding on hold includes a $2 million grant for infrastructure work at a Hawaiian homestead development in Waimea, the Honolulu Star-Advertiser reported.
A handful of families planning to build new homes also are affected, and the U.S. Department of Housing and Urban Development has stopped issuing loan guarantees in the areas. So are homesteaders trying to get HUD-backed private financing for mortgages or home repair.
“This is definitely a major concern,” said Michael Hodson, president of the Waimea Hawaiian Homesteaders’ Association.
HUD officials only recently learned that five homestead communities are within 100,000 acres contaminated with remnants of bombs, grenades and other munitions left from World War II training exercises.
The Army Corps of Engineers for more than 10 years has overseen remediation work, which has removed more than 2,300 bombs, hand grenades, mortar shells and land. Remediation is expected to continue for decades and cost millions.
Nine people since the 1940s have been killed or injured by old artillery rounds. No homesteaders, however, have reported unexploded ordnance on their lots, according to the Hawaii Department of Hawaiian Home Lands.
Ryan Okahara, HUD’s field office director in Honolulu, said the agency is using an abundance of caution in stopping grants and loans in the affected areas until the ordnance issue is sufficiently addressed.
The second phase of a Waimea homestead project, called Lalamilo, is within what was once the Waikoloa Maneuver Area, Okahara said.
Department of Hawaiian Home Lands officials have discussed relocating homesteaders. “The department is expediting the process to provide our lessees with as many options as possible as quickly as possible,” spokesman Puni Chee said in written responses to questions.
Nearly 600 people have leased lots in the affected areas, and many fear they would not be compensated for homes or other improvements.
“It’s not our fault that the United States used the land as a bomb practice,” said Lauae Kekahuna, treasurer of the Makuu Farmers Association.