Hawaii Initiates Inquiries into Unauthorized Property Bids as Effort to Maintain Local Ownership in Lahaina Continues

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Governor Josh Green of Hawaii announced on Thursday that multiple investigations are underway to scrutinize individuals allegedly making unauthorized offers to acquire property in Lahaina, a town in Maui recently devastated by wildfires. These offers contravene a newly issued emergency proclamation signed by the governor earlier this week.

The emergency order aims to thwart the transfer of property in the historic coastal town to non-local buyers. The governor’s intent, as he articulated in an interview with The Big Big News, is to grant residents a reprieve as they ponder their future course of action.

Even before the catastrophic fire on August 8, concerns were rife about the escalating gentrification of Lahaina. There has been increasing anxiety that Native Hawaiians and residents with multi-generational property holdings may feel compelled to sell.

The concern extends to the potential departure of these residents from Lahaina or even from Hawaii, taking with them their cultural and traditional heritage. Such a move would contribute to the growing emigration of Hawaiians to regions with lower living costs.

“We have observed such instances across various geographies where people, having lost everything else, are forced to sell their land for a fraction of its value,” Governor Green said. “Our aim is to keep the land under the ownership of local inhabitants and afford them an opportunity to rebuild.”

According to authorities, the wildfire claimed the lives of 115 individuals and razed approximately 1,800 to 1,900 homes. Lahaina, with a population of 12,000, is home to many employed in the hospitality sector in adjacent areas such as Kaanapali. About 6,000 individuals are currently housed in hotels and other temporary accommodations, awaiting cleanup and reconstruction efforts.

Governor Green, a Democrat, initially sought to enact a comprehensive ban on property sales in the area. However, he conceded that such a blanket prohibition could be impractical and might deter willing sellers from initiating sale discussions. Instead, the ban on unsolicited property offers serves as a de facto moratorium, he said.

Several cases of unwanted property offers have been reported to the state attorney general, although the exact number of open investigations remains undisclosed. Offenders found in violation of the order may face up to one year in prison and fines up to $5,000.

Local resident Melody Lukela-Singh expressed her disappointment that an outright ban was not enacted. “At this emotionally charged time, everyone is susceptible to manipulation,” she said.

State Representative Troy Hashimoto, who chairs the House housing committee, described the governor’s measure as a “nuanced” approach. Robert Thomas, an expert in property rights litigation, noted that the situation presents conflicting interests—property owners’ rights versus governmental protections against predatory behavior.

Governor Green also floated the idea of establishing a land trust as a potential safeguard against property exploitation. He expressed willingness to listen to Lahaina residents regarding the future use of existing state-owned lands in their community.

Furthermore, Governor Green is considering the creation of a “victim assistance fund,” akin to the September 11 Victim Compensation Fund. The objective would be to provide direct financial assistance to victims without the intermediary costs often charged by legal professionals. Funding sources for the proposed assistance fund, which are yet to be announced, could include private, philanthropic, and government contributions.

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Reported from Lahaina, Hawaii.

Frequently Asked Questions (FAQs) about Hawaii Property Investigations

More about Hawaii Property Investigations

• Hawaii Governor’s Office Emergency Proclamation
• Lahaina Fire: A Timeline of Events
• The Big Big News Interview with Governor Josh Green
• Legal Framework of Property Rights in the United States
• Pacific Legal Foundation on Property Rights
• September 11 Victim Compensation Fund: An Overview
• State of Hawaii Attorney General’s Office
• House Housing Committee in Hawaii Legislature
• Property Ownership and Gentrification in Hawaii