Ka Wai Ola - Office of Hawaiian Affairs, Volume 25, Number 9, 1 September 2008 — OHA's real estate policy [ARTICLE+ILLUSTRATION]

OHA's real estate policy

Haunani Apuliuna. MSW Chairpersūn, TrustEE, At-large

Aloha mai kākou e nā 'ōiwi 'ōlino mai Hawai'i a Ni'ihau a puni ke ao mālamalama. On lune 5, 2008, at OHA's Board of Trustee's meeting, by a vote of 7-0, Trustees appropriated $3 million annually to the Department of Hawaiian Home Lands for the next 30 years. Hailed as "the most monumental, unprecedented action by OHA Trustees in OHA's 30-year history," this OHA/DHHL partnership catapults forward development of lands for homesteaders and the 18 regional plans statewide. DHHL's newsletter Ka Nūhou, Volume 34, No. 3, Summer 2008, provides front-page focus on this OHA BOT action with a candid message

from Ohainnan Kāne. On lune 6, 2007, ahnost a year to the day, the OHA Trustees took another milestone step adopting the Office Of Hawaiian Affahs Real Estate Vision, Mission and Strategy Policy. It is this Policy that from lune 2007 forward guides all OHA decision-making on Real Estate. The Vision Statement in the Policy notes, "The OHA real estate vision is to be the real estate partner of ehoiee: by every person and entity with any involvement in Hawai'i lands: individuals, institutions, corporations, puhlie purpose entities and government agencies; for any and every type of Hawai'i property and Property Involvement." The Mission Statement says, "OHA shall protect and preserve Hawaii's lands and theh eultural significance by: bridging the ancient use of lands with future land use patterns; advocating for land use and transaction practices and regulations congruent with the Hawaiian sense of plaee; creating financially viable Property Involvements." The Strategy

Section of the Policy says: • "OHA will ehampion real estate best praetiees." Elements include the best practices model, adoption of a real estate asset alloeahon model to include legacy lands, corporate real estate, progranunatic lands, investment lands; adherence to a prudent investment standard, world-class strategic management, mandatory property standards; established priorities on types of Property Involvements and the Dual Priority for Eeonomie and Cultural Concerns. • "OHA shall seek portfolio expansion." This strategy will examine lands that are not just ceded lands, working with partners in eollaboration rather than independently trying to do it ah, elevating the model of respect for land and honoring the Hawahan Sense of Plaee, and advocate for superior land pohcy that ean analyze and appraise property transactions to assess how the property and hansaction may inlluenee the Hawahan Sense of Plaee. • "OHA shall establish superior organization and infrastrueture," to include professional property investing and stewardship, strive for a world-class strategic management system. • "OHA shall build a strong linaneial

foundation for all Property Involvements," providing organizational, management and hnaneial support to facihtate the OHA Real Estate Shategy and provide that eaeh hnportant OHA property be managed by a separate legal entity and supported by an independent foundation; ensuring that analysis for eaphal investment decisions reflect risks and rewards; not sehing arbihary hnhts or pursuing one-size-fits-all capital budgeting contrary to Best Practices and further not setting an arbitrary eaphal spending ceiling, as that would be in confhct whh fiduciary duties to beneficiaries. The OHA Real Estate Vision, Mission and Strategy Policy guided decision-making by Trustees in lands identified for the 2008 legislation to resolve the "disputed payments" still due to OHA from ineome and proceeds of the Puhlie Land Trust for the years 1978 to 2008. This same OHA policy will guide us in our return to the 2009 Legislature to pursue payment of these "disputed" amounts of past due ineome and proceeds from the Puhlie Land Trust. Payment to OHA is the obligation of the State of Hawai'i; and the Hawai'i State Supreme Court affirms that is the primary obligation of the Legislature. Holomua i ka lanakila. 46/48 ^

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