Ka Wai Ola - Office of Hawaiian Affairs, Volume 11, Number 4, 1 April 1994 — Ceded land revenues, homestead loans, unresolved issues [ARTICLE+ILLUSTRATION]

Ceded land revenues, homestead loans, unresolved issues

by Clayton Hee Chairman, OHA Board of Trustees While 1 agree that OHA should do more, 1993 saw a lot of chanees and initiatives set into

motion for the first time. I would like to discuss just two of the initiatives in this article. In January 1993, 1 stated that OHA could finally expect the state to pay the Hawaiian people monies it owed OHA for the years

1980 to 1989. During that time OHA was not paid the millions of dollars owed by the state for the use of lands where OHA had a 20 percent ineome interest by law. In June 1993. OHA received $5

million agreed to by OHA and the state at that time. Finally, in July 1993, the state paid OHA $134 million whieh included $107 million plus approximately $27 million in interest. Homestead revolvine loan fund

I had also indicated in January 1993 that OHA would establish a partnership program between OHA, First Hawaiian Bank and the Department of Hawaiian Home Lands onee the state paid OHA the money. This pro-

gram established two $10 million revolving loan programs — one for home repair and one for establishing down-payment funds for homesteaders. This innovative program allows homesteaders to

walk into any of First Hawaiian Bank's approximately 80 branches in Hawai'i to apply for either (or both) of the loan programs. First Hawaiian Bank uses its offices. loan processors, computers, telephones, fax machines, lawyers, property appraisers and clerks to do all that is necessary to approve homesteaders seeking assistance in applying for these loans. Every loan is fully guaranteed by the Department of Hawaiian Home Lands. This is the first program of its kind anywhere in Hawai'i or the United States. By September 1993, OHA set the OHA-FHB-DHHL program into motion. Last month the first five homesteader families, from Moloka'i, O'ahu and the Big Island, received their loans. We must expand this program to also include Hawaiians not living on homestead lands.

OHA Education Foundation In 1993 OHA established the OHA Education Foundation by earmarking $10 million to help all Hawaiians to continue their education by applying to the foundation. Those applying need not be going to college. They ean be anyone. from the 'ōpio to the kūpuna seeking to go to school but unable to meet the high costs associated with education in Hawai'i. The foundation is led by a board of directors whieh includes Miehael Chun, Alma Henderson, Abraham Pi'ianāi'a, Joyce Tsunoda and David Peters. They will make the policies governing the OHA Education Foundation. OHA has granted an additional $100,000 in scholarships for Hawaiians in 1992 and 1993. Unresolved issues On Jan. 14, 1994, OHA filed a

complaint in Circuit Court for the balance owed the Hawaiian people for the years 1981 to 1989. Through OHA's certified accounting firm, Deloitte and Touche, OHA asserts that the Hawaiian people are still owed approximately $100 million more from the State of Hawai'i. OHA did not want to go to court. However, unless the eomplaint was filed, the Statute of limitations may have expired and OHA's legal standing would have been lost forever.

Our adversaries have asserted since 1992 that OHA had "cut a deal" with the state in 1992. Nothing is further from the truth. OHA had agreed with the state to an iniīial settlement. The state has not agreed with OHA on the balanee owed. OHA has sought judieial relief for that amount. I believe OHA will win. We must do more. We will.