Less than a year after Hawaii’s Legislature appropriated a historic $600 million to the state Department of Hawaiian Home Lands largely to ramp up homestead development, two Senate committees are expressing displeasure with the agency and its new director.

Members of the Ways and Means Committee and Hawaiian Affairs Committee on Tuesday gave a sometimes scathing reaction to an agency budget presentation from new DHHL Director Ikaika Anderson flanked with support from longtime agency staff.

Critical comments focused on new funding requests for homestead lot development and staff positions, along with whether DHHL’s new leadership will seek to amend a plan approved in August by the Hawaiian Homes Commission to spend the $600 million and whether all that special funding can be encumbered by a June 30, 2025, deadline imposed by the Legislature.

The roughly three-hour briefing in a Senate hearing room at the state Capitol was far from a honeymoon-period reception for Anderson, though the former Honolulu City Council chair, who was selected by recently elected Gov. Josh Green to head DHHL about a month ago, took all questions and comments in stride.

Frustration from some senators centered on not receiving a spending plan breakdown for a $62.7 million request for homestead development project work in the fiscal year ending June 30, 2024, and $139.6 million in the following fiscal year, which are separate from homestead lot development plans using the $600 million, which also weren’t included in the briefing material.

“It’s very confusing,” said Sen. Donna Mercado Kim (D, Kalihi-Fort Shafter-Red Hill). “It’s a lot of money to be spent in the biennium.”

Sen. Donovan Dela Cruz, Ways and Means chair, told Anderson, “I think it would be easier for the members to figure out what’s in the $600 million and then what are you asking on top of that.”

“Fair, senator,” Anderson replied.

Sen. Gilbert Keith-Agaran, Ways and Means vice chair, also expressed frustration at not having material in DHHL’s budget presentation showing how the new lot development funding requests fit with the $600 million spending plan.

“We expected you guys to come here prepared,” said Keith-Agaran (D, Waihee-­Wailuku-Kahului).

Harsher words came from Senate Vice President Michelle Kidani (D, Mililani Town-Waipio Gentry-Royal Kunia).

“The $600 million was given last year, and you have people dying on the list who will never get their homes because we’re sitting here doing this crap,” she said. “All of this should have been done before you guys got here. You guys have had a long time to work on this. It’s very irritating to sit here and not have the information that we need to get the homes to our kupuna (seniors). That’s what is irritating. I don’t know about how you guys feel, but I’m so pissed off.”

Under the Hawaiian homestead program, created in 1921 by federal law and administered by the state since 1959, DHHL beneficiaries must be at least 50% Hawaiian and can receive 99-year land leases for $1 a year but pay for or build their own houses.

The agency has about 10,000 lot lessees but has struggled for over 60 years under state control to do more, in part because of relatively little past funding and expensive infrastructure costs to develop its land, which is often outside urban areas. As a result, there are roughly 28,700 applicants on a waitlist for homesteads, and an analysis by the Honolulu Star-Advertiser and ProPublica found that more than 2,000 beneficiaries have died while on the list.

DHHL submitted its $600 million spending plan to the Legislature on Dec. 6, which included a projected cost breakdown by homestead subdivision project produced in August and approved by the Hawaiian Homes Commission.

According to the plan, the agency projects being able to deliver 2,727 homestead lots and 177 rental apartments using $540 million that also includes acquiring some land. Another $60 million would provide other beneficiary aid that could include help with down payments to buy a home and rental assistance.

The homestead production breakdown estimate includes 781 lots in Kapolei costing $149 million, 600 lots in Ewa Beach for $48 million and 144 lots along with a 136-unit rental townhome project in Maili for $60 million.

As part of his presentation, Anderson, whose job is subject to confirmation by the Senate, thanked lawmakers for 2022’s $600 million appropriation and said one of DHHL’s top priorities is to have 19 staff positions funded so that it can help meet the spending deadline and reduce the homestead waitlist and help beneficiaries in other ways.

“You’ve provided an opportunity for our department to put Native Hawaiian people back on the land,” he said.

Kim pointed out that DHHL had 66 vacancies for funded positions as of Thursday, and questioned why the agency should receive funding for 19 new positions when it can’t fill so many vacancies, including some that have been unfilled for as long as a decade despite hiring efforts.

Dela Cruz (D, Wahiawa-­Whitmore-Mililani Mauka) said, in summary, “I think some of our concerns are that you do have a lot of money, you’re asking for more money, you’re asking to fund positions but then it doesn’t seem like you’re able to fill the positions or spend the money. So it’s hard to justify funding more positions and giving more money when you can’t seem to spend it.”

Anderson said he believes DHHL can spend the $600 million by the deadline. He told members of the two committees that he isn’t asking for a deadline extension, but noted that some ideas are being discussed to perhaps modify the spending plan to include more rental housing or other things that have yet to be presented to the Hawaiian Homes Commission.

DHHL’s spending plan for the $600 million does not require lawmaker approval, though any sum not encumbered by June 30, 2025, reverts to the state general fund.