The state has issued homestead leases on Maui to 320 Native Hawaiian families, some of whom have been on the waiting list for more than 25 years.

The Department of Hawaiian Home Lands said it planned to build the project in Waiohuli in Upcountry Maui in four 80-home phases, with the last set to begin in 2008.

"By providing time, our beneficiaries will be able to get their finances in order, which has been one of the major roadblocks for accepting a lease award," department director Micah Kane said. "We have initiated this program to help those who need to get financially qualified for a home mortgage."

The project is being developed under a department program that allows a beneficiary to accept a lease without first having to financially qualify for a mortgage.