FAQs from Meeting
1. What is the pricing and affordability of the Community Land Trust homes?
The Land Trust had parcels appraised to determine market value, then offered homeowners the higher end of the appraisals. Homes built on the land will be priced based on construction costs, with the goal of keeping housing costs to no more than 30% of the homeowner's income. The ground lease model caps home appreciation to keep them affordable.
2. What are the potential additional costs, such as HOA fees, for the Land Trust homes?
There will be minimal lease fees of around $50-100 per year or month. Property taxes still need to be paid by the homeowner, but the Land Trust is working on strategies to have the taxes assessed based on the home value, not the land value. There will also be a small stewardship fee but no astronomical HOA fees, unless the land is subject to those.
3. Is the Land Trust model based on the historical Mākaʻāina land stewardship system?
The Land Trust is modeled after the Department of Hawaiian Homes program, with the goal of keeping land in community ownership while allowing homeownership of the homes.
4. Can families build generational wealth through the Land Trust model?
The focus is on providing time and financial freedom for families rather than maximizing monetary wealth. By removing the land cost from the mortgage, families can work fewer jobs and have more time with their children.
5. Is completing the Lahaina Bypass Road northbound a priority?
The bypass is a state issue, but the community and County administration have made it clear it is a high priority. State Rep. Elle Cochran provided an update that the bypass is included in the regional transportation plan.
6. Are there any loan programs and real estate price regulations for Land Trust homes?
Fannie Mae, Freddie Mac and other lenders have specific loan programs for Community Land Trust purchases. The Land Trust will only control the appreciation of homes on its properties, not the broader Lahaina real estate market.
7. What is the Army Corp. of Engineers doing to mitigate dust?
Work in the area is nearing completion, and workers are using various means to control dust in the area. The Army Corp. of Engineers noted that weather conditions have been a challenge and asked for the public’s patience as the final lots are cleared.
8. Are there housing security and insurance benefits for fire survivors?
Mayor Bissen stated that Gov. Green has signaled an intent to extend benefits and has encouraged residents to work directly with FEMA representatives at the Office of Recovery-West Maui.
9. How will the $4 billion settlement be resolved, and how much will be toward lawyers' fees?
The courts have ruled that insurance companies will not be able to use subrogation to recoup what they paid out before the settlement funds are distributed and that insurance companies can only receive what is left over after the survivors and victims have been paid. The County is unsure how the $4 billion settlement will ultimately be divided, as those negotiations are still ongoing. However, the intent is to get the money to the people who need it as quickly as possible, rather than going through a lengthy lawsuit process.