Senate panel impairs DHHL leadership bid

Ikaika Anderson failed to win an endorsement from a Senate committee Tuesday to lead the state Department of Hawaiian Home Lands over issues that included mistrust.

Gov. Josh Green’s nominee and director designate for the position received a negative recommendation from four of the five members on the Senate Committee on Hawaiian Affairs after a five-hour hearing at the state Capitol.

Anderson, a part-Hawaiian former chair of the Honolulu City Council who finished second in the August primary election to be lieutenant governor, received an outpouring of praise from supporters who included Green, former Govs. Neil Abercrombie and John Waihee, several Green Cabinet members, former Council colleagues and many DHHL beneficiaries.

“I humbly ask you to support and vote favorably on Ikaika Anderson,” Green told committee members. “He devoted a good part of his life to caring for the people of Hawaii. He cares deeply about the Hawaiian community.”

Kali Watson, a former DHHL director now in the nonprofit affordable-housing development business, called Anderson “the guy to really move the program forward.”

But the 45-year-old, whose 88-year-old grandmother Hannie and 91-year-old grandfather Whitney, a former lawmaker, sat in the front row of the hearing room, also received considerable negative public testimony from organizations and individuals that included the Waimanalo Neighborhood Board, some beneficiaries and DHHL’s last director, William J. Aila Jr.

Aila said Anderson seemed to be taking direction from Green instead of the Hawaiian Homes Commission and a fiduciary duty to the trust held to benefit those who are at least 50% Hawaiian.

”You cannot serve two masters,” he said. “It sometimes means you have to say no to the governor.”

Aila also said DHHL staff morale is low and that he believes Green wanted Cedric Duarte, DHHL’s information and community relations officer, fired despite Duarte’s valuable institutional knowledge and outstanding work.

“That guy was so loyal to the department,” Aila said.

Anderson said he made the call to fire Duarte and that the Attorney General’s Office advised him that he cannot discuss it.

Tuesday’s 4-1 committee vote is a recommendation to the full 25-member Senate, which will have the opportunity to confirm or reject Anderson if Green presses ahead with his pick to lead DHHL at a pivotal time that includes spending $600 million to help reduce a waitlist of roughly 28,700 applicants seeking homesteads.

The committee received 205 pages of written testimony, some of which was from close to 50 people who spoke at the hearing.

Anderson was largely criticized for his interactions at two Senate budget briefings and a couple of Hawaiian Homes Commission meetings, shortly after starting the job Jan. 3 under the appointment by Green subject to the Senate’s consent.

Some committee members felt Anderson was not prepared despite having staff available, and for stating that he intended to deviate from a plan approved by the Hawaiian Homes Commission in 2022 to spend the $600 million within a three-year deadline allowed by the Legislature under a law enacted in 2022 to provide the historic level of funding.

Anderson, at one Senate briefing, indicated that he wanted to build more houses and wasn’t sure how much of the commission-approved plan, which is focused on developing house lots using most of the $600 million, might be done. He also suggested that the commission had voted to approve a conceptual plan of his for deviating from, or adding to, the approved plan.

The committee’s vice chair, Sen. Kurt Fevella (R, Ewa Beach-Ocean Pointe-­Iroquois Point), regards Anderson as having lied in characterizing commissioners as approving a change to the approved plan.

Green’s chief housing officer, Nani Medeiros, said at one Senate briefing that a new idea was to seek other funding from the Legislature to deliver homestead lots.

On Tuesday, Anderson said building more houses, which beneficiaries have to pay for as opposed to lots they receive for $1 a year, was only an idea that may not have panned out, and that he is sticking with the commission-approved plan.

“I am planning to implement (the approved plan) as written,” he said.

Sen. Jarrett Keohokalole (D, Kaneohe-Kailua) said it was clear to him that Anderson was pushing a change in the plan driven at least in part by Green’s office.

“I’m sorry, Ikaika,” Keohokalole said. “I feel misled, I feel like the Senate has been misled and I cannot support your nomination.”

Sen. Maile Shimabukuro (D, Nanakuli-Waianae-Makaha), chair of the committee, was the first member to offer a position on a decision, and credited Anderson for his “amazing background” and impressive support to take on a complex, impossible task in running DHHL well. But she said tension appearing to involve Green’s influence was an issue.

“Based on what’s been said and based on the concerns raised, unfortunately, I would recommend a no vote,” she said. “It’s nothing personal.”

Sen. Les Ihara Jr. (D, Palolo-Kaimuki-Moiliili) also voted against Anderson’s nomination, saying that DHHL needs a civic leader as opposed to a leader with a political and civic blend.

The lone vote in support of Anderson was Sen. Herbert “Tim” Richards III (D, North Hilo-Waimea-North Kona).

Sen. Donna Mercado Kim, who is not a Hawaiian Affairs Committee member, sat in on part of the hearing to question Anderson for nearly 15 minutes about work-related complaints in some of his past jobs, including a stint when he worked for Kim.

“I had to let you go,” she said.

Anderson disputed Kim’s recollection. “I resigned,” he said.

After the vote, Green, a former state senator, said in a text that the committee didn’t listen to a large majority of supporters who wanted to give Anderson a chance to help build houses for the Hawaiian community.

“Instead they chose to side with the last director that was unable to deliver housing and left the department with about 50% of its staff filled,” Green said. “We need to change if we hope to get better results. The people elected us to take on problems like the housing shortage, affordability and homelessness, not to play politics. Today the people lost.”

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Staff writer Dan Nakaso contributed to this report.