“Exposed: How FEMA’s Housing Program in Maui Led to Rent Increases and Displacement”

The aftermath of the devastating 2023 fires on Maui has led to a secondary housing crisis, with reports showing that FEMA’s housing program may have inadvertently contributed to rising rents and displacement on the island. According to new reporting by Civil Beat and ProPublica, FEMA’s program to rent housing for wildfire survivors did not have adequate safeguards in place to prevent landlords from evicting long-term residents in favor of higher-paying tenants.

The program, which aimed to find empty vacation rentals and second homes for survivors, offered rates well above what residents typically paid in rent. This led to some landlords evicting tenants to house wildfire survivors for more money, causing rents to rise across the island. A study commissioned by FEMA itself found that median rent increased by 44% from early 2023 to June 2024, with anecdotal evidence suggesting that landlord behavior may have changed in response to FEMA’s high prices.

While FEMA did instruct potential contractors to lease units not available to the general public, it did not explicitly prohibit them from signing up properties that had been occupied by long-term residents. This lack of oversight allowed some landlords to take advantage of the situation and displace residents in favor of higher-paying tenants.

In contrast, the Council for Native Hawaiian Advancement, a local nonprofit, ran a leasing program that was more proactive in preventing profiteering by landlords. The nonprofit required property owners to attest that they were not evicting anyone in order to house survivors and verified the type of rental property being offered. They also offered lower rates for long-term rentals compared to vacation rentals.

FEMA officials acknowledged that the agency did not require contractors to avoid long-term rentals and stated that they are open to suggestions on how to improve the program. While some contractors claimed to have refused to work with landlords trying to evict tenants, reports suggest that the vetting process was not thorough enough in some cases.

Overall, the lack of safeguards in FEMA’s housing program has had a significant impact on Maui’s housing market, leading to increased rents and displacement of residents. As the island continues to recover from the wildfires, it is crucial for government agencies and nonprofits to work together to ensure that housing assistance programs do not inadvertently exacerbate existing housing crises.