Hawaii investigates unsolicited land offers as the state tries to keep Lahaina in local hands

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Hawaii investigates unsolicited land offers as the state tries to keep Lahaina in local hands

Hawaii Gov. Josh Green said Thursday his administration has opened several investigations into people who allegedly made unsolicited offers for property in the fire-ravaged Maui town of Lahaina in violation of a new emergency order.

Green banned such offers by signing an emergency declaration on Aug. 19 aimed at preventing land in the historic coastal community from flowing into the hands of outside buyers.

The order is meant to give residents “breathing room” as they decide what to do next, Green said in an interview with The Associated Press.

Even before the Aug. 8 fire, Lahaina was a booming city and there was widespread concern that native Hawaiians and local-born residents who had owned properties in their families for generations might feel pressured to sell.

The concern is that they will leave Lahaina, or Maui or the state, taking their culture and traditions with them and contributing to the continued migration of Hawaiians to cheaper places to live.

“We’ve seen it in many different places in our country and in our world where people lose everything but their land and someone comes in and buys real estate for pennies on the dollar,” Green said. “We want to keep this land in the hands of local people, and we want to give them at least a chance to decide if they want to rebuild.”

Green banned such offers by signing an emergency declaration on Aug. 19 aimed at preventing land in the historic coastal community from flowing into the hands of outside buyers.Green prohibited such offers by signing an emergency declaration on Aug. 19 aimed at preventing land in the historic coastal community from flowing into the hands of outside buyers.AP

Authorities said 115 people died in the fire, which tore through Lahaina within hours. About 1,800 to 1,900 houses were destroyed.

The town of 12,000 is home to many who work in hotels and restaurants in nearby Kaanapali and Lahaina.

About 6,000 people are staying in hotels and vacation rentals while they wait for the toxic waste left by the fire to be cleaned up and rebuilding to begin.

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Earlier this month Green, a Democrat, said he wanted to impose a moratorium on land sales in Lahaina to prevent people from being displaced.

Authorities said 115 people died in the fire, which tore through Lahaina within hours.  About 1,800 to 1,900 houses were destroyed.Authorities said 115 people died in the fire, which tore through Lahaina within hours. About 1,800 to 1,900 houses were destroyed. NYPJ
Green said people have reported the unsolicited offers to his attorney general, though he did not disclose how many investigations have been opened.Green said people have reported the unsolicited offers to his attorney general, though he did not disclose how many investigations have been opened. James Keivom

But the governor said a blanket ban “may not be possible” and he doesn’t want to stop people considering selling real estate from starting those conversations.

The ban on unsolicited offers for real estate is a “de facto” moratorium, he said.

Green said people have reported the unsolicited offers to his attorney general, though he did not disclose how many investigations have been opened.

Those found guilty of violations can be jailed for up to one year and fined up to $5,000.

Lahaina resident Melody Lukela-Singh said she was disappointed the governor did not impose an outright ban as she initially said.

Lahaina resident Melody Lukela-Singh (right) said she was disappointed the governor did not impose an outright ban as she initially said.Lahaina resident Melody Lukela-Singh (right) said she was disappointed the governor did not impose an outright ban as she initially said.AP

“Outsiders should not have the opportunity to grab land or real estate. Because emotions are running high, so everyone is vulnerable,” Lukela-Singh said.

He spoke near his temporary accommodation a few miles from the site of his home on Front Street, which was destroyed in the fire. Lukela-Singh said he would not sell his land if an offer was made.

“You know, it’s the only thing we have left,” said Lukela-Singh, who is from Hawaii. He knew three families, all Filipinos, who sold their homes and wanted to move because they couldn’t bear the stress of seeing Lahaina burned to the ground.

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State Representative Troy Hashimoto, a Democrat who chairs the House housing committee and represents the central Maui community of Wailuku, said the ban on unsolicited offers is a “nuanced” approach.

He spoke near his temporary accommodation a few miles from the site of his home on Front Street, which was destroyed in the fire.  Lukela-Singh said he would not sell his land if an offer was made.He spoke near his temporary accommodation a few miles from the site of his home on Front Street, which was destroyed in the fire. Lukela-Singh said he would not sell his land if an offer was made. James Keivom

“You really don’t want to inconvenience a lot of landowners, especially when they’re not in that frame of mind or ready to talk about it,” Hashimoto said. “But I don’t want to stop landowners if they proactively want to move, do I?”

The situation presents two competing interests, said Robert Thomas, director of property rights litigation at the California-based Pacific Legal Foundation.

One is that the US Supreme Court has found that people have the right to decide what to do with their property.

Another is that the government has a vested interest in ensuring that people are not victimized.

Green said people have reported the unsolicited offers to his attorney general, though he did not disclose how many investigations have been opened.Green said people have reported the unsolicited offers to his attorney general, though he did not disclose how many investigations have been opened. James Keivom

“It seems to me, and it’s just me watching this, that someone took a deep breath and said: ‘We can achieve our goal of protecting property owners here from predatory behavior without taking a drastic and possibly unconstitutional route by just throwing this blanket away. . prohibition,’” said Thomas, who has practiced property and land law in Hawaii for 35 years.

Green previously floated the idea of ​​the state acquiring land in Lahaina to ensure local people aren’t priced out of the rebuilt community, but said Thursday the state won’t do this unless the community asks.

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One possibility is for the state to form a land trust to buy properties from families who can buy them back later.

Green previously floated the idea of ​​the state acquiring land in Lahaina to ensure local people aren't priced out of the rebuilt community, but said Thursday the state won't do this unless the community asks.Green previously floated the idea of ​​the state acquiring land in Lahaina to ensure local people aren’t priced out of the rebuilt community, but said Thursday the state won’t do this unless the community asks. James Keivom
One possibility is for the state to form a land trust to buy properties from families who can buy them back later.One possibility is for the state to form a land trust to buy properties from families who can buy them back later.AFP via Getty Images

“Any option to prevent a sale to someone who’s just coming in to benefit one of our staff, we’re open to it,” Green said.

He is also open to hearing from Lahaina residents about what they want the state government to do with existing state land in their town.

“The state will not take any steps or take any initiative to build anything unless it is requested by the community,” said Green.

He is also open to hearing from Lahaina residents about what they want the state government to do with existing state land in their town.Green is also open to hearing from Lahaina residents about what they want the state government to do with existing state land in their town. NYPJ

Green said he is considering establishing a “victim relief fund” similar to the September 11 Victim Compensation Fund, which would make payments to those who suffered losses. The objective is to compensate people without requiring large payments to “middlemen” such as lawyers who often take 30% to 40% of legal settlements, he said.

It’s too early to say who will put money into the project, but such funds often receive money from private, philanthropic and government sources, said Green, who plans to announce details during a scheduled Sept. 8 address.

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