Urgent Call from Paltin: Establish Homeowner Aid Program Before Federal Funds Evaporate
With an impending deadline of September 30, 2025, to utilize over $8 million in federal funding, Maui County, Hawaii Council member Tamara Paltin is urgently advocating for the creation of a program to distribute these funds as homeowner assistance.
Paltin expresses deep concern over the rising instances of residents facing foreclosure, overdue homeowner association fees, or falling behind on property taxes. She emphasizes that the county has already missed a year in which it could have provided much-needed support. “The situation is extremely pressing to me,” Paltin stated.
In an attempt to accelerate the aid process, Paltin is set to introduce Resolution 23-41 at the forthcoming Maui County Council meeting on Friday. The resolution advocates for the administration to issue a request for proposals (RFP) to administer a Homeowner Assistance Fund Program under the American Rescue Plan Act (ARPA) of 2021. Even though the adoption of the resolution won’t legally compel the administration, it serves as a potent message of urgency.
Furthermore, Paltin highlighted the recent state Department of Hawaiian Homelands bill, stating, “Despite homeowners falling behind on property tax payments, they can still access owner-occupied and finance-supported facilities because carrying that balance has a detrimental impact on our bond rating. We have federal funds ready to alleviate their predicament, but instead, we are inactive.”
Paltin criticized the County of Maui for being the only county in the state that has not yet issued an RFP for a vendor to distribute the ARPA funds. This federal money could be used to support struggling homeowners in a similar manner as it is being employed in other counties.
The Homeowner Assistance Fund Program, backed by the American Rescue Plan, aims to assist homeowners whose income falls below 150% of the area’s median income. This support is offered in the form of grants to prevent foreclosures. Hawaii Community Lending notes that the specific terms of the program are defined by each state.
