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Less than a year after a devastating, deadly wildfire, 10,000 Maui plaintiffs have reached a $4 billion settlement, Housing Wire reported on Monday.
On Aug. 8, 2023, Maui encountered the fifth-deadliest wildland fire in the history of the U.S. and the worst natural disaster in Hawaii. “The total scope of the recovery, which includes past insurance claims, county, federal and state support, will approach $12 billion,” Hawaii Governor Josh Green stated in a release on Friday. The historic city of Lahaina was destroyed, and over 100 people lost their lives.
The plaintiffs and seven defendants — the state of Hawai‘i, County of Maui, Hawaiian Electric, Kamehameha Schools, West Maui Land Co., Hawaiian Telcom and Spectrum/Charter Communication — settled after four months of mediation.
The $4.037 billion settlement, subject to final documentation and court approval, will be distributed to over 10,000 plaintiffs impacted by the fire, including homeowners and businesses, beginning mid-2025. The settlement will resolve nearly 450 lawsuits from individuals, businesses and insurance companies filed for fires in Lahaina and Maui.
“This Global Settlement of over $4 billion will help our people heal. My priority as Governor was to expedite the agreement and to avoid protracted and painful lawsuits so as many resources as possible would go to those affected by the wildfires as quickly as possible. Settling a matter like this within a year is unprecedented, and it will be good that our people don’t have to wait to rebuild their lives as long as others have in many places that have suffered similar tragedies,” Gov. Green said.
“This was an extraordinary and unprecedented effort by many people to address the tragic impacts of the wildfires in less than a year,” Green said. “Resolving this so quickly shows how Hawai‘i is different, how we come together in times of crisis to heal together as a community.”
According to the Office of the Governor, Hawaii will not only contribute to the settlement, but to the One ʻOhana Fund with a $65 million contribution. One ʻOhana Fund is a compensation program that assists those who suffered physical injury and families of those who died from the wildfires.
The impact of the wildfire continues to cripple Hawaii as the Federal Housing Administration (FHA) and the U.S. Department of Housing and Urban Development (HUD) have extended the Maui foreclosure moratorium for FHA-insured forward mortgages and Home Equity Conversion Mortgages (HECMs), according to Housing Wire.
The Mortgagee Letter, released nearly two weeks ago, stated that HUD “is now further extending the foreclosure moratorium for properties located in Maui County, Hawaii due to the extent of the devastation from the wildfires, the reduced capacity to access needed resources, and the unique geographic location of Maui.”
The foreclosure moratorium, initially set to expire in May, has been extended for the third time to Jan. 1, 2025.
At last week’s 26th annual Inman Innovator Awards, over 80 individuals and companies were honored for improving the real estate industry through leadership and generosity in the midst of unexpected challenges. Maui real estate agents received the Nate Ellis Award for giving back to the community following the Maui wildfires.
