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(808) 961-8996
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FAQs

When will buyouts begin?
The County's Voluntary Housing Buyout Program (VHBP) will purchase eligible properties affected by the 2018 eruption.

The buyout application process is divided into the following three phases. For more information, visit the Housing Buyout Program page. The VHBP program is no longer accepting applications.
- Phase 1: Primary residences
  - Applications accepted from April 30, 2021, through July 30, 2021.
- Phase 2: Secondary residences (including long-term rental properties)
  - Applications accepted from Nov. 1, 2021, through Jan. 31, 2022.
- Phase 3: Undeveloped properties
  - Applications accepted from July 18, 2022, through October 31, 2022.
Who is eligible?
Eligible properties include those that were inundated or isolated by lava, suffered physical damage (including from fires and wildfires caused by lava), or have been physically impacted by secondary effects, including heat and gases at their property.

Additional threshold factors to determine eligibility for the VHBP include:
- All applicants must have owned their property prior to the 2018 Kīlauea eruption and must currently own their property. Applicants must be able to demonstrate clear ownership of the property.
- Applicants qualifying their property as a primary home must provide proof that they resided in the structure at the time of the disaster as a primary home.
- Applicant must be current on property taxes or current on an approved payment plan (including exemptions under current law). Any remaining liens on the property will be cleared at closing, including any liens and outstanding homeowner association (HOA) dues.
- Property qualifying as a primary or second home must have had an eligible structure prior to the disaster. Eligible structures for the VHBP must have served as dwelling units. Structures do not have to have been permitted prior to the eruption to be eligible for this program.
How are buyouts prioritized?
Applicants applying for disaster assistance, through the VHBP, will be processed according to the following phases and priorities. Late applications will be processed during subsequent phases. A weighting, or point system, will also be implemented to assist in the ranking of properties to be acquired. It is important to note that the application period has ended and the VHBP is no longer accepting applications.

Phase 1 -- Primary Residences
- Applications accepted from April 30, 2021, through July 30, 2021.
Phase 2 -- Secondary Residences
- Applications accepted from Nov. 1, 2021, through Jan. 31, 2022.
Phase 3 -- Undeveloped Properties
- Applications accepted from July 18, 2022, through October 31, 2022.
Phasing is based on use at the time of the eruption.

Within each phase, applications will be prioritized based on the following criteria:

Low- to Moderate-Income (LMI) Households

Hawai‘i County will prioritize LMI applicants over non-LMI applicants. HUD requires that at least 70% of program funding must serve LMI households. LMI eligibility will be specific to each qualifying household and based on verification of each applicant’s household income.

Damage Status

Damage for properties will also be given different levels for prioritization. Properties with significant inundation or isolation will be the largest weight in the point system, followed by properties with significant damage, and then partial damage.

Road Access

The County will rank properties without road access to be restored over those with road access to be restored.
How do I know if I'm LMI?

Household are considered low- to moderate-income (LMI) if the household income is 80% or less of the area median income. The chart below identified the maximum amount a household can earn to qualify as LMI based on household size. These income levels are updated each year.
How many applications have been received?

The County has received 820 viable applications for all property types as of November 10, 2022.
What kind of properties are eligible during Phase 3?

Phase 3 included primary and secondary homes, long-term rentals, and the newest addition of undeveloped properties. The VHBP is no longer accepting applications.
Are vacation rentals eligible?
If the property served as a full-time vacation rental and the owner did not reside on the property for any portion of the year, then the property would not qualify. In this circumstance, the vacation rental would be considered a business. Businesses are not eligible for the Voluntary Housing Buyout Program.

Properties that were used as short-term rentals may qualify if:
- The owner used the property as a primary residence.
- The owner resided on the property for the greater of:
  - 14 days a year, or
  - more than 10% of the total days the property is rented.
How long will the process take?

Completion of sale is anticipated to take nine months to a year following the intake appointment with VHBP staff.
How much can I get for a buyout?

Buyout offers will be based on the pre-disaster (2017) Real Property Tax appraised total market value of the property (land and structures) with a limit of $230,000 for primary, $142,000 for secondary homes/long term rentals, and $22,000 for undeveloped properties. To review the appraised market values, visit www.hawaiipropertytax.com.
What if I received federal assistance or insurance payments?
Following release of the draft Initial Community Development Block Grant Disaster-Recovery (CDBG-DR) Action Plan, the recovery team worked with the U.S. Department of Housing and Urban Development (HUD) to clarify the application of duplication of benefits for the VHBP. HUD has confirmed the following will not count as duplicative, meaning receiving these forms of assistance won’t reduce buyout grant amounts:
- Federal Emergency Management Agency Individual Assistance for rental assistance, home repairs, or housing replacement;
- U.S. Small Business Administration loans for home repairs, housing reconstruction, housing relocation, or other approved purposes;
- Private insurance payouts for loss of structure and/or contents;
- Private sources such as grants for home repairs or in-kind assistance.
'Necessary and Reasonable'

The County must conduct an individualized review of each applicant to determine that the amount of assistance the applicant is eligible for will not cause a duplication of benefits by exceeding the unmet needs of that applicant. Even if no duplication of benefits is identified, program costs and grant awards must abide by cost principles and are required to be “necessary and reasonable.” Applicants are required to provide information on all sources of disaster recovery assistance to help determine whether any assistance may be duplicative and that CDBG-DR assistance is necessary and reasonable.

For example, if an applicant has unspent funds that were received for disaster recovery assistance, or if those funds were not used for their intended purpose, then deductions for a duplication of benefits may apply.

The County understands that applicant benefits can be a moving target with additional funds received much later than initial payouts or due to appeals and litigation. Further, all funding sources may not be known at the time of application.
Do I need to have owned the home prior to the eruption?

Yes, to be eligible for a buyout, an applicant must have owned the property prior to the eruption and still own the property.
How is VHBP funded?

The Voluntary Housing Buyout Program is funded by $107 million in Community Development Block Grant-Disaster Recovery funds from the U.S. Department of Housing and Urban Development.
Must the home be permitted?

Properties that meet the criteria for the voluntary housing buyout program would be eligible for a buyout even if the home on the property may not have been permitted. During the intake and application process, we will assess with the applicants whether a home existed before the eruption and the applicant would need to demonstrate that it was being used as a residence at the time to be considered a primary dwelling.
What if I own multiple impacted properties?

The Voluntary Housing Buyout Program will accept one property per applicant.
What will happen to my home and property?

If structures or other improvements (such as utilities and driveways) remain on the property, they will be demolished after being purchased.

The County may continue to manage these properties or can explore opportunities where appropriate to provide access agreements to former owners while maintaining the compatible open space uses; to preserve sites of cultural significance; to provide for maintenance agreements; to transfer title to a community association or land stewardship group for the maintenance and use of these properties in a way that is compatible with open space uses; or to lease lands for agricultural uses that are productive in the eruption areas and require a minimal investment in crops or infrastructure that could be lost to a future eruption. Responsible management of these properties is critical to the long-term recovery of communities impacted by the 2018 Kīlauea eruption.
Will CDBG-DR money be used for economic development or infrastructure?

The U.S. Department of Housing and Urban Development requires recipients of Community Development Block Grant-Disaster Recovery (CDBG-DR) funds to address unmet housing needs before applying the funds to economic revitalization or infrastructure projects. Due to the size of the unmet housing recovery need, the County is using CDBG-DR funds for housing programs.

More FAQs

CDBG-DR Voluntary Housing Buyout Program

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We are no longer accepting applications for the Voluntary Housing Buyout Program

If you are an applicant of the Voluntary Housing Buyout Program and your contact information or address has changed, please call us at (808) 961-8996.

For more information on the process from application to payout, click here.

Important Program Update: Maximizing Assistance in Phases 2 and 3

About the Program

The Community Development Block Grant Disaster Recovery (CDBG-DR) Voluntary Housing Buyout Program (VHBP) is designed to assist those impacted by the 2018 Kīlauea eruption using approximately $107 million in federal Department of Housing and Urban Development (HUD) funds.

The purpose of this program is for the County to acquire properties to keep them from being impacted by future eruptions and maintain the sites as open space.

The sole purpose of the program is to help as many eligible property owners as possible, with a particular focus on those who are Low- to Moderate-Income (LMI) range, as mandated by the HUD, who were impacted by the 2018 eruption.

The latest numbers from the Voluntary Housing Buyout Program:

Now that the application period for the Voluntary Housing Buyout Program has ended, we wanted to update everyone on the progress of disbursement.

Right now, the program is focused on closing applications for those who are low- to moderate-income and lost their primary or secondary home in the eruption. After that, any remaining funds will be used for undeveloped properties.

We understand that getting funds to applicants as quickly as possible is one of the most important things we can do in this program. Disbursing federal recovery funds is a complicated and lengthy process as each application requires over a hundred hours of attention from our staff to make sure we are following proper procedures and remaining in compliance with HUD requirements. We appreciate your patience as we continue working as quickly as we can to help as many applicants as possible.

For more information on this program, you can read the CDBG-DR Action Plan and our Policy and Procedures. You may also view the Citizen Participation Plan.

Application Phasing

The VHBP application process is divided into three phases based on the use of the property at the time of the eruption. Applications will not be accepted before or after the appropriate phase start date.

Phases

To be eligible for the VHBP, properties must have been impacted by the disaster, whether by inundation or isolation, damage by fires caused by lava, or secondary effects of volcanic activity, such as heating or gases. Applicants must have owned the property at the time of the eruption. Eligible property owners may only apply for one property for this program.

Buyout offers are based on the 2017 pre-eruption assessed market value, with a maximum grant award of $230,000 for primary, $142,000 for secondary residences, and a maximum grant award of $22,000 for undeveloped properties.

After You Apply:

After you apply, a member of our team will reach out to schedule an intake appointment to determine your eligibility and make sure you have all the documentation and paperwork needed to proceed with your application.

To prepare for the intake process, assemble and make copies of the documents listed in the application checklist corresponding to your property type, which you can find below in the 'Application Forms and Supporting Documents' section. Please do not send any documents from the checklist until asked to do so.

The buyout process is anticipated to take nine to twelve months following the initial intake appointment for Primary Home applicants.

Primary Homes: Processing on Offers and Purchase Agreements remain our highest priority, especially those who are LMI. A limited amount of offers and purchase agreements will be generated weekly according to program and county Finance Department processing limitations and requirements.

If you have already received an offer and are awaiting a purchase agreement, please allow several months for processing. Federal requirements mandate that LMI households will be provided a purchase agreement and thus a payout first before non-LMI households.

Secondary Homes: Processing on Offers and Purchase Agreements remain our highest priority, especially those who are LMI. A limited amount of offers and purchase agreements will be generated weekly according to program and county Finance Department processing limitations and requirements.

If you have already received an offer and are awaiting a purchase agreement, please allow several months for processing. Federal requirements mandate that LMI households will be provided a purchase agreement and thus a payout first before non-LMI households.

Vacant Properties: Please wait to be contacted for processing. If your application was submitted before the October 31, 2022 deadline, your application is still valid and your place in line is secured. If you require immediate assistance, please email kilaueabuyout@hawaiicounty.gov or call (808) 961-8996.

For more information on the process from application to payout, click here.

For answers to frequently asked questions, click here.

For questions on your application, email kilaueabuyout@hawaiicounty.gov or call (808) 961-8996.

Important Notice: Phase 3 Application Processing by Appointment Only

As we fully launch the Phase 3 intake process for the Voluntary Housing Buyout Program, we kindly remind applicants that application processing is by appointment only. While we welcome inquiries, document drop-offs, and general questions, please be aware that our staff cannot accommodate walk-in requests for immediate processing.

To ensure efficient service and avoid delays, we encourage applicants to wait for their assigned specialist to contact them to schedule an appointment. If you have any concerns or need assistance, feel free to contact our office by phone at (808) 961-8996.

Thank you for your understanding and cooperation.

Important Program Update: Maximizing Assistance in Phases 2 and 3

For more information, view our 1/25/24 Press Release

As we progress through the Hawai'i County Voluntary Housing Buyout Program, we want to keep you informed about significant changes that will affect Phases 2 and 3. Our commitment remains strong to provide assistance to as many eligible applicants as possible, particularly those in the Low- to Moderate-Income (LMI) category as mandated by the U.S. Department of Housing and Urban Development (HUD).

What’s Changing

After careful evaluation and consultation with County administrators and HUD, we find ourselves with approximately $38 million remaining from the original $107 million grant funds after serving the bulk of Phase 1 applicants.

Phase 2 buyout offers will be up to $142,000 to make sure all eligible Phase 2 applicants are served. Purchase offers will still be based on pre-disaster value within this limit.

This strategic move ensures that all eligible Phase 2 applicants will receive assistance. Without this adjustment, a significant number of Phase 2, and the entirety of Phase 3 would not be served.

Any remaining funds after serving Phase 2 will be used to assist eligible Phase 3 applicants, starting with LMI properties. This is in alignment with HUD requirements for these grant funds. The maximum grant award for Undeveloped Properties will remain at $22,000.

Public Engagement

If you missed our virtual meeting on the Phase 2 changes to the Voluntary Housing Buyout Program, not to worry.

We've uploaded the hour-long meeting including a presentation on the latest updates to the program and a Q&A section where we answer applicant's questions.

Contact Us

If you have any questions, email the VHBP at kilaueabuyout@hawaiicounty.gov or by calling (808) 961-8996.

Want to Learn More?

Click on the tabs below or view these videos explaining the program. You can also listen to this episode of the County's Kaiāulu Connections podcast featuring Douglas Le, Disaster Recovery Officer, and County Communications Director Cyrus Johnasen.

Videos

County of Hawai‘i Planning Director Zendo Kern and County CDBG-DR Program Manager Julie Leialoha discuss the details of Phase 3 of the VHBP application process and frequently asked questions.

Forms & Supporting Documents

CDBG-DR Action Plan and Substantial Amendments

CDBG-DR Action Plan

The U.S. Department of Housing and Urban Development (HUD) has allocated $107,561,000 in Community Development Block Grant-Disaster Recovery (CDGB-DR) funds to the County to address unmet recovery needs from the 2018 Kīlauea eruption and earthquakes (DR-4366). HUD requires recipients to provide an Action Plan outlining how the money will be applied to unmet needs following a disaster.

HUD approved the County's initial Action Plan for an $83.84 million CDBG-DR grant in October 2020 following a public comment period. The Action Plan was amended in August 2021 following additional public comment to address an additional allocation of $23.72 million in CDBG-DR funds.

View the current CDBG-DR Action Plan 3.2

View Frequently Asked Questions about Buyouts and other topics.

Previous versions of the action plan:

CDBG-DR Action Plan 3.1
CDBG-DR Action Plan 3.0 (Substantial Amendment Property Data)
CDBG-DR Action Plan 2.0
CDBG-DR Action Plan 1.0

Tiered Environmental Review for the Kīlauea Voluntary Housing Buyout Program

The County published the Tier 1 Environmental Review for the HUD-funded Voluntary Housing Buyout Program on March 27, 2022. This environmental review took a programmatic approach for the area affected by the 2018 Kīlauea eruption and documents the Program’s determination and Findings of No Significant Impact (FONSI) on the quality of the environment. The program demonstrated compliance with HUDs assisted projects through 24 CFR Part 58. The environmental review considers all potential impacts that could possibly affect the surrounding community, archeological and historical considerations, and factors identified as having significance on the flora and fauna.

The Tiered Environmental Review is available for public comment until April 11, 2022. A hard copy is available for review at our office: 100 Pauahi Street, Suite 200, Hilo HI 96720.

Direct Comments to Lindsay Moore, Lindsay.Moore@hawaiicounty.gov

Kīlauea Voluntary Housing Buyout Program (808) 961-8996

Following the public comment period, the County will request the release of funds from HUD to proceed with the acquisition of eligible covered properties under the Voluntary Housing Buyout Program. A second tier of review will be completed on properties being acquired that adhere to additional requirements separate from this broad-level tiered review.

Prioritization

Applicants applying for disaster assistance, through the VHBP, will be processed according to priorities within each phase. A weighting, or point system, will be implemented to assist in the ranking of properties to be acquired.

Type of property

Those who lost their primary residences will be given priority over those who lost their secondary homes and vacant lots. Secondary homes will be given priority over those with vacant lots.

Low- to Moderate-Income (LMI) Households

Hawai‘i County will prioritize LMI applicants over non-LMI applicants. HUD requires that at least 70% of program funding must serve LMI households. LMI eligibility will be specific to each qualifying household and based on verification of each applicant’s household income.

Damage Status

Damage for properties will also be given different levels for prioritization. Properties with significant inundation or isolation will be the largest weight in the point system, followed by properties with significant damage, and then partial damage.

Road Access

The County will rank properties without road access to be restored over those with road access to be restored.

Duplication of Benefits

Buyout offers are based on the pre-disaster (2017) appraised total market value of the property minus duplication of benefits and are subject to this maximum buyout amount of $230,000.

Following release of the draft Initial Community Development Block Grant Disaster-Recovery CDBG-DR Action Plan, the recovery team worked with the U.S. Department of Housing and Urban Development (HUD) to clarify the application of duplication of benefits for the VHBP. HUD has confirmed the following will not count as duplicative, meaning receiving these forms of assistance won’t reduce buyout grant amounts:

Federal Emergency Management Agency Individual Assistance for rental assistance, home repairs, or housing replacement;
U.S. Small Business Administration loans for home repairs, housing reconstruction, housing relocation, or other approved purposes;
Private insurance payouts for loss of structure and/or contents;
Private sources such as grants for home repairs or in-kind assistance.

'Necessary and Reasonable'

The County must conduct an individualized review of each applicant to determine that the amount of assistance the applicant is eligible for will not cause a duplication of benefits by exceeding the unmet needs of that applicant. Even if no duplication of benefits is identified, program costs and grant awards must abide by cost principles and are required to be “necessary and reasonable.” Applicants are required to provide information on all sources of disaster recovery assistance to help determine whether any assistance may be duplicative and that CDBG-DR assistance is necessary and reasonable.

For example, if an applicant has unspent funds that were received for disaster recovery assistance, or if those funds were not used for their intended purpose, then deductions for a duplication of benefits may apply.

The County understands that applicant benefits can be a moving target with additional funds received much later than initial payouts or due to appeals and litigation. Further, all funding sources may not be known at the time of application.

Funding and Use

The VHBP is funded by the U.S. Department of Housing and Urban Development's (HUD) Community Development Block Grant-Disaster Recovery (CDBG-DR) program. A buyout program and housing relocation services were addressed in the County's CDBG-DR Action Plan approved by HUD in October 2020. A substantial amendment allocating additional grant funds was approved in August 2021.

HUD requires acquired properties to be managed as open space. Limited agriculture may be allowed. Partnerships with subdivision associations and other organizations to assist with community-based management of the properties also will be considered.

Program Budget

The total program budget for the buyout program is $100,534,000. This allocation may be increased or decreased based on the demand for the program with amendment to the CDBG-DR Action Plan and approval by the County Housing Agency and HUD.

County's CDBG-DR Quarterly Performance Reports (QPR)

The CDBG-DR Program is required to submit to HUD, and make available to the public, information on the use of funding for disaster recovery activities. Quarterly Performance Reports (QPRs) are generated to document progress on and expenditure amounts of program activities. The following is a list of the County’s CDBG-DR QPRs to date:

Bid Opportunities and Awarded Contracts

For information on procurement and doing business with the County:

Public Purchase - The Purchasing Division uses the electronic bidding and vendor management software, Public Purchase to post and receive bid and quote documents electronically. Public Purchase is an easy to use web-based e-procurement service for on-line bidding and vendor management used by many government organizations. There is no cost for vendors to use the system to receive and submit bids for the County of Hawaii.
Public Purchase Registration Letter 2021
Doing Business with the County of Hawaii Brochure

For a list of our awarded CDBG-DR funded contracts:

CDBG-DR Funded Contracts List

For copies of our CDBG-DR funded contracts:

Information on How to Bid on County projects:

How to Report Fraud, Waste, and Abuse

Information on how to report waste, fraud, and abuse:

The County of Hawai‘i is committed to anti-fraud, anti-waste, and anti-abuse in its programs, policies, procedures, and utilization of public funds. The County understands its fiduciary duty to ensure proper disbursement of grant funds for eligible activities. The County will remain in compliance with applicable CDBG-DR rules and regulations, as well as other applicable federal regulations.

Reports of fraud, waste and abuse can be reported to the County of Hawaii CBDG Internal Auditor at clare.mcadam@hawaiicounty.gov.

Reports of fraud, waste and abuse can also be reported to the HUD Office of Inspector General through its hotline (800) 347-3735 or (800) 8777-8339 (TTY/ASCII) and by email at hotline@hudoig.gov.

Additional Resources

View the Resources page for information on other programs that could assist residents impacted by the eruption.

Housing Impacts

The four-month-long eruption destroyed 723 structures, including 612 homes. Of those homes, 294 were primary residences. Additional homes and properties were left isolated. The map below shows the immediate impacts following the eruption. Additional homes, not shown in this map, have experienced impacts from heat migrating outward from the underground magma dike.

Housing map

Contact

FAQs

'Necessary and Reasonable'

We are no longer accepting applications for the Voluntary Housing Buyout Program

***If you are an applicant of the Voluntary Housing Buyout Program and your contact information or address has changed, please call us at (808) 961-8996.***

For more information on the process from application to payout, click here.

Important Program Update: Maximizing Assistance in Phases 2 and 3

Application Phasing

After You Apply:

Important Notice: Phase 3 Application Processing by Appointment Only

Important Program Update: Maximizing Assistance in Phases 2 and 3

Want to Learn More?

Videos

Forms & Supporting Documents

Additional Resources

Housing Impacts

If you are an applicant of the Voluntary Housing Buyout Program and your contact information or address has changed, please call us at (808) 961-8996.