Additional Coverage:
- Maui braces for possible end to FEMA rental assistance and more housing strain for fire survivors (nbcnews.com)
Maui Residents Face Housing Cliff as Federal Aid Teeters on the Brink
Lahaina, Maui – Nearly 1,000 households displaced by the devastating Maui wildfires are facing an uncertain future as federal housing assistance from the Federal Emergency Management Agency (FEMA) is poised to expire. This potential cutoff could force hundreds to find new housing or shoulder significantly higher costs in an already strained and expensive rental market.
FEMA has been a critical lifeline for these residents for two and a half years, but the agency is expected to decide in the coming weeks whether to discontinue the funding. This decision comes amidst a broader push by the Trump administration to reduce FEMA’s role and shift more disaster recovery responsibilities to individual states.
Advocates warn that ending rental assistance and evicting renters would severely hinder recovery efforts in Lahaina, the West Maui town largely decimated by the August 8, 2023, fire. Such a move could trigger a new wave of homelessness and lead to a further exodus from the island.
“All of them entering into our already impacted rental market in February scares me a lot,” stated Nicole Huguenin, executive director and co-founder of Maui Rapid Response, a mutual aid organization.
The fires in Lahaina and Kula, in Maui’s upcountry region, destroyed 2,200 structures and claimed 102 lives. Following the disaster, then-President Joe Biden declared a major disaster, activating FEMA assistance for 12,000 displaced individuals, 89% of whom were renters.
The program was initially extended until February 2026. However, with minimal rebuilding progress and near-zero rental inventory, the state requested another extension last May, with a decision anticipated by the end of January.
The looming uncertainty is compounded by the ongoing debate surrounding FEMA’s future. Former President Donald Trump has frequently suggested eliminating the agency, advocating for states to assume more responsibility for disaster management. While it remains unclear if this shift in approach will directly influence the housing assistance decision, it is a significant concern for residents.
“It falls into the hands of the current administration and I’m not sure if they’re fond of the amount of money we’ve had to use,” shared Kukui Keahi, a Lahaina fire survivor currently renting an apartment through FEMA after experiencing homelessness post-fire.
Should the program expire, all housing-related financial assistance for fire survivors would cease, and any units directly leased through FEMA would need to be vacated, according to an agency notice. Maui County spokesperson Laksmi Abraham expressed optimism, stating the county is “working with the state and FEMA toward an extension and is optimistic that an extension will be granted.” FEMA declined to comment on the matter.
A Unique Crisis on a Remote Island
While other states have experienced wildfires destroying a greater number of homes, Maui’s fires presented a unique crisis. The island’s limited housing stock and remote location from the U.S. mainland have made relocating survivors and rebuilding exceptionally challenging.
FEMA, alongside state, county, and nonprofit organizations, grappled to find housing solutions for the displaced, many of whom were desperate to remain near Lahaina to access work, schools, and their community.
Following initial efforts with the Red Cross to house 8,000 residents in hotels and temporary shelters, FEMA gradually transitioned families to other forms of housing assistance. This included providing rental aid, installing temporary shelters on burned properties, and directly leasing thousands of units for survivors. However, some residents reported burdensome eligibility requirements and multiple relocations.
The U.S. Army Corps of Engineers assisted FEMA in constructing Kilohana, a 167-unit modular housing complex overlooking Lahaina.
This substantial investment involved extensive site preparation, including blasting hard rock and installing new utility infrastructure. The first family moved into the complex 14 months ago.
Unaffordable Rents Worsen Post-Fire
If rental assistance ceases, approximately 190 households in modular units, 470 in the direct lease program, and 280 relying on financial assistance will be thrust into an already stressed housing market that has seen little improvement since the fires.
Maui’s rental vacancy rate is below 2%, and as of mid-2025, there were no available units priced at or below what the federal government considers fair market rent, according to the Hawaii Emergency Management Agency (HIEMA). The University of Hawaii Economic Research Organization reported that displaced survivors faced rent increases of 50-60% after the fires, with two- and three-bedroom units still costing nearly double pre-fire rates.
Critics have partly attributed these increases to FEMA’s own housing programs, which sometimes leased properties at prices significantly above fair market rates to incentivize landlord participation, though the island’s housing shortage predated the fires.
“My goal is to (pay) what I was before and I can’t, there’s no way,” said Keahi, who also serves as program deputy at the Hawaiian Council, a nonprofit managing multiple recovery initiatives on Maui.
The slow recovery of Maui’s tourism-dependent economy further restricts what tenants can afford. To address supply challenges, the county recently passed a bill banning short-term rentals in apartment-zoned properties starting in 2029, despite opposition from those concerned about impacts on tourism and jobs.
Rebuilding efforts are gaining momentum, with 109 residential construction projects completed and approximately 300 underway. “The tough part on the island is everything needs to be shipped in,” explained HIEMA Administrator James Barros.
Optimism Mixed with Contingency Planning
Barros indicated that if an extension is granted, FEMA might impose new “milestones” for the state to meet to accelerate its recovery. FEMA has provided prolonged housing assistance in the past for both large-scale disasters like Hurricane Katrina and smaller events, depending on the specific needs. Extensions are typically based on factors such as unit availability, the number of households requiring assistance, and the progress made by both households and local governments in finding alternative solutions.
The county and state have been developing contingency plans “for months” in the event FEMA assistance ends, including potentially taking over the management of Kilohana, Barros confirmed.
Adjacent to Kilohana is Ka La’i Ola, another community of 450 modular units established through a state-philanthropic partnership. Residents there currently do not pay rent and are permitted to stay for up to five years.
Kimo Carvalho, CEO of the housing nonprofit Home Aid Hawaii, which manages Ka La’i Ola, reported that a Kilohana resident recently inquired about applying to Ka La’i Ola due to the potential expiration of their housing. However, Carvalho informed The Associated Press that the community is already at full capacity with a lengthy waitlist.