HI SCR14

Requests the State Auditor to conduct a performance audit of the Department of Hawaiian Home Lands' (DHHL) commercial lease management practices, revenue optimization, and rent collection procedures for over 1,600 income-generating properties.

DHHL generated approximately $10,956,000 in general lease revenue and $10,291,000 in lease-related interest revenue in fiscal year 2024, with leases extending through July 2084.

The audit would examine whether commercial properties are leased at below-market rates, citing a 2019 DLNR audit that found $1.6 million in lost revenue from just 16 leases and $838,000 below-market rents on 112 revocable permits.

More than 29,000 beneficiaries remain on the homestead waitlist, and the Legislature appropriated $600 million through Act 279 (2022) for waitlist reduction, underscoring the need to maximize all revenue sources.

The Auditor's report with findings and recommendations is requested no later than twenty days prior to the Regular Session of 2027.