Maui Housing Advocates Release Report on Community Impact of FEMA’s Direct Lease Program

A new report by Maui Housing Hui – a coalition of community members on Maui advocating for fair housing – examines how FEMA’s Direct Lease Program (DLP) has directly and indirectly impacted the community following the devastating wildfires of August 2023. The report, “FEMA Direct Lease Program Community Impact Report,” uses qualitative, firsthand accounts to reveal the impact of the DLP on the Maui housing market and especially the disadvantages of the program for renters.

The 2023 wildfires on Maui exacerbated the island’s ongoing housing crisis, leaving thousands of community members without homes. In order to address the urgent need for stable housing solutions for wildfire victims, FEMA launched the Direct Lease Program (DLP). The DLP leases existing, ready-to occupy residential properties for use as temporary housing for families displaced by the wildfires. While the program aims to assist wildfire survivors, the report details how the DLP has also generated indirect negative impacts for some community members. A primary concern among advocates has been the above-market rate rents FEMA has authorized as payment for participating property owners. This dynamic can lead to rent increases across the island and incentivize property owners to evict current tenants in order to receive elevated rents (see January 8 Memo).

Maui Housing Hui recruited 141 homeowners and renters to document their experiences receiving DLP support using a brief, five-question survey. Of the respondents, 60% indicated they were a renter who had been impacted by the DLP, and 28% indicated they were a homeowner who had been interested in, applied to, or participated in the DLP. In their analysis, Maui Housing Hui associated certain themes in order to code open-ended responses to analyze different patterns among self-reported experiences. Themes that were identified through the organization’s research included landlord attempts to evict or vacate tenants in order to participate in the DLP, nonrenewal of the leases for long-term tenants in order to capture FEMA rates, an increase in rental market prices, ineffective placement of tenants, and the pushing of Maui residents off the island or into homelessness. The report ultimately revealed several negative impacts that were correlated with introduction of the DLP:

  1. Rental costs across the island have increased as a result of the program’s implementation. As landlords seek higher rents through FEMA’s payment standards, housing has become less affordable for those not participating in the DLP.
  2. Many landlords have evicted long-term tenants in order to lease their properties at a higher rate under the DLP standards. Meanwhile, tenant rights have been ignored, leading to possible legal violations on behalf of landlords.
  3. The criteria determining eligible living placements have forced some residents into unsuitable living conditions or communities far from their support networks.

Based on these findings, Maui Housing Hui recommends several strategies for implementing better disaster recovery programs:

  1. Tenant rights need to be expanded and protected in order to prevent exploitative rental tactics and defend vulnerable tenants against corrupt landlord practices.
  2. Disaster recovery programs should have greater flexibility and efficiency to (1) support timely placement processes for eligible households; (2) minimize displacement from communities and support systems; and (3) ensure that the needs of affected residents are accommodated.

“Data is one powerful way to amplify community voices,” said Jade Moreno, principle researcher of the Maui Housing Hui. “Using a qualitative research design that preserves authenticity, produces timely results, and empowers the people of Maui has guided the process. It is social science used as a tool for advocacy and we’ve made this tool available to grassroots organizations and government officials alike. This survey provides an opportunity for informed decision making at the nexus of housing and disaster relief.”

Maui Housing Hui’s report draws new attention to the need for expanded tenant protections, especially in the face of disaster recovery efforts. By documenting the challenges posed by the DLP and adopting the improvements recommended by Maui Housing Hui, future disaster recovery programs may provide increased resilience and housing stability in affected communities. NLIHC’s Disaster Housing Recovery Coalition (DHRC) works to ensure that federal disaster recovery efforts reach all impacted households, especially the most at-risk populations who are often hit hardest by disaster and have the fewest resources to recover afterwards. Learn more about the DHRC here.

In order to expand and strengthen tenant protections at the local, state, and federal levels, NLIHC recently launched the “National Tenants Bill of Rights,” a comprehensive policy agenda that affirms the government’s duty to provide all renters with basic protections from abusive and predatory landlords. These protections will mitigate the power imbalance between tenant and landlord that fuels racial inequity and puts our nation’s 114 million renters at greater risk of housing stability, harassment, eviction and homelessness.

Read the full Maui Housing Hui report here.