HI SR12

Requests the State Auditor conduct a comprehensive performance audit of the Department of Hawaiian Home Lands' (DHHL) commercial lease management practices, revenue optimization strategies, and rent collection procedures.

DHHL manages over 1,600 income-generating properties across approximately 200,000 acres, generating roughly $10.9 million in general lease revenue and $10.3 million in lease-related interest revenue in fiscal year 2024.

The audit would examine whether commercial properties are being leased at below-market rates, following concerns that similar issues at the Department of Land and Natural Resources resulted in approximately $2.4 million in lost revenue.

With more than 29,000 beneficiaries on the homestead waitlist and a $600 million legislative appropriation (Act 279, 2022) for waitlist reduction, the resolution seeks to ensure all revenue sources are optimized.

The Auditor is requested to submit findings and recommendations, including any proposed legislation, no later than twenty days prior to the Regular Session of 2027.