Big Island buyout program ending 7 years after eruption

A Hawaii County program offering to purchase Puna residents’ lava-damaged properties should finally wrap up this year.

The Voluntary Housing Buyout Program launched in 2021 to offer residents whose properties were damaged, destroyed or isolated by the 2018 Kilauea eruption. After four years since it launched—and seven years following eruption—the program is winding down, with more than 750 applicants having completed, or still undertaking, the buyout process.

County Recovery spokesperson Jen Myers confirmed the program should complete most of its buyouts by the end of 2025, although this depends on the remaining properties moving through the process efficiently, and with applicants responding in a timely manner.

The program accepted applicants in three phases. The first, highest-priority phase was for owners of primary residences affected by the eruption. There were 311 applicants for that phase.

As of February, only three phase one applications remained open, with the rest having been bought out.

Phase two applicants were those with secondary homes affected by the eruption, with about 200 applicants, while phase three was for owners of vacant land, about 300 of whom applied.

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As of February there were 41 phase two and 282 phase three applications still open.

Myers said via email that the program has had to contend with “the complexities of title issues, probate situations, and unique property cases ” that have slowed down the process. Previously, the program was expected to close its last buyouts by the end of 2024.

The program had an initial budget of $83.8 million from the U.S. Department of Housing and Urban Development. As the program went on and the number of applicants grew, the maximum payout for phase three applicants was reduced to $22, 000 from $230, 000.

Myers said via email she estimates the program should be able to serve all eligible phase three applicants with some amount of federal funds.

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