FEMA under fire for spending $826K on tiny Maui homes and $12K per month to manage each one whether occupied or not

FEMA’s housing response in Maui is under fire. The agency spent over $826,000 per unit to build 490-square-foot temporary homes for victims of the Lahaina fire. That breaks down to more than $1,600 per square foot, a figure that dwarfs the cost of high-end residential construction in Hawaii. These aren’t custom homes. They’re trailers. The price tag doesn’t match the product.

The fire displaced thousands. FEMA promised shelter. What followed was a contract maze. Three out-of-state property management firms were hired under a $200 million agreement to oversee the units. The terms include $12,000 per unit per month, regardless of whether the homes are occupied. The payments are locked in. The oversight is unclear.

Each unit is smaller than a two-car garage. The cost per trailer exceeds the median home price in much of the country. The management fees alone could fund permanent housing for every displaced family. Instead, the money is flowing to firms with no local roots. The contracts are active. The invoices are being paid.

Sources:

https://countylocalnews.com/2025/05/28/femas-maui-tiny-homes-826k-each-scandal-uncovered-fema-housing-fraud-lahaina-fire-recovery-costs-maui-tiny-home-controversy/

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FEMA scam in Maui, Hawaii EXPOSED These very small 490 square foot tiny homes behind him were “built by and paid for by FEMA to provide temporary housing to Lahaina fire victims” “Each one of these COST OVER $826,000 PER UNIT, which is over $1600 per square foot”

♬ original sound – Rachelle B