Martin Blackwell is one of more than 300 people who joined the first application phase of the Kilauea Disaster Recovery Voluntary Housing Buyout Program that will pay as much as $230,000 to those who lost properties or use of their homes to the 2018 Kilauea eruption.
Blackwell, 57, said his former home in Kapoho Beach Lots is now under 40 feet of lava, and although he received an insurance settlement, he still owed $100,000 on his mortgage.
When the voluntary buyout program was announced in April, “I was shocked, like, wow, they’re really going to do this and minimize the losses. I thought that was pretty incredible and I was shockingly hopeful; it was unexpected,” he said.
The program is funded by $107 million in U.S. Department of Housing and Urban Development Community Development Block Grant funds for disaster recovery. It is administered by the Disaster Recovery Division within the Hawaii County Planning Department.
The first application phase, which ended July 30, prioritized properties that were used as primary residences at the time of the eruption. Later application phases will cover secondary residences and undeveloped properties.
County officials had said at least 294 homes fall into the first category, so based on the number of initial applications received, interest in the program appears high.
“There was flurry of last-minute applications,” said Julie Leialoha, CDBG-Disaster Recovery manager.
Of the total received by the first deadline, 284 were determined to be eligible after an initial review, she said. Of those, 117 were filed by property owners in Leilani Estates, where lava first burst through the ground May 3, 2018.
Now it’s up to the applicants to gather pertinent documents to begin the formal intake process. From there, officials said it could take six months before any payments are issued.
Leialoha said the disaster recovery team is available to assist applicants and plans to meet with each one.
“We really want to get them through the process. It can be frustrating because of the number of documents required … ,” she said. “For the most part people are really happy that we have the program and that it’s actually becoming a reality, and they can see a light at the end of the tunnel.”
The 107-day Lower East Rift Zone eruption in Puna destroyed or rendered uninhabitable 723 structures, including 612 homes in Leilani Estates, Kapoho Vacationland, Lanipuna Gardens and Kapoho Beach Lots. Nineteen other homes were cut off by lava.
Officials estimate the disaster caused $296 million in home losses, plus $236.5 million in damage to public infrastructure.
After the loss of his home, Blackwell, a mental health therapist, built a new place atop an old lava flow in Kalapana Gardens. He said he is still dealing with lenders over his Kapoho property.
“It’s been a complete nightmare,” he said. “It’s been more traumatic than losing my life savings.”
As thankful as he is for the buyout opportunity, and despite his losses, Blackwell said he has managed to stay “calm and relaxed through the whole thing once I realized it wasn’t going to take my life.” He said he adopted the mantra “breathe, slow, gratitude.”
“When you’re just grateful for another breath then it doesn’t matter what happens to you; you can overcome any trauma.”
The buyout program is the first of its kind in Hawaii, although similar efforts have been offered on the mainland in communities subject to natural disasters. In addition to providing financial relief to property owners, the buyouts are meant to reduce development and potential future losses in proven hazard areas, according to Douglas Le, who is leading the county’s recovery efforts.
He said the HUD-funded program to address unmet housing needs is just one part of the county’s economic revitalization efforts in Puna in the wake of the 2018 eruption and, more recently, the COVID-19 pandemic.
“We really felt that access to capital was the best way to serve people in all sorts of situations,” Le said.
HUD grant rules prohibit using funds for rebuilding in lava zones 1 and 2, and at least 70% of the funds must benefit low- to moderate-income residents.
Offers will be based on a property’s 2017 assessed market value. The $230,000 cap was determined by the median market values of the primary residences that were destroyed.
After purchase, any structures on the properties will be demolished and the county may explore opportunities to provide access to former owners for open-space uses; to preserve cultural sites; to transfer title to a community association or land stewardship group; or to lease lands for agricultural uses.
The Phase 2 application period for secondary residences runs from Nov. 1 through Jan. 31, and the Phase 3 application period for undeveloped properties from May 2 through July 29, 2022.
Officials stressed that owners of primary residences who missed the initial application deadline can still apply for a buyout during the remaining two phases.
The $107 million in HUD funds for disaster recovery includes $1.6 million for housing relocation services. That program is open to low- to moderate-income families who need assistance securing permanent housing. Direct aid includes up to a 10% down payment to buy a home, and for renters, two months’ rent.
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HOW TO GET HELP
Download applications for the Kilauea Disaster Recovery Volun- tary Housing Buyout Program and housing relocation services at recovery.hawaiicounty.gov. To obtain a hard copy, call 961-8996 or email kilaueabuyout@hawaiicounty.gov.
