A devastatingly critical report detailing chronic problems in the State Historic Preservation Division warns that continued mismanagement and financial constraints facing the office could cause economically significant delays in major projects that must meet federal standards for protection of historic and cultural resources.

Department of Defense construction projects, as well as other large federally funded projects like Honolulu’s proposed rail system, are at risk of being snared by ongoing turmoil within the state office, the report notes.

The report, prepared by the National Park Service, warns that federal grants that underwrite SHPD staff and programs will be cut off if the state is unable to comply with a list of recommended changes. This would, in turn, result in further staff cuts and the inability of the office to contribute to meeting the requirements of federal law.

The loss of HPF grant funds and corresponding loss of staff would create great uncertainty in how government agencies operating in Hawaii would comply with Federal and State laws, and would cause serious delays in economic stimulus projects that will have measurable benefits for Hawaii’s economy. Without an approved State Historic Preservation Program, the availability of Federal assistance provided through the SHPO would be restricted or unavailable to the citizens and property owners of Hawaii. A lack or shortage of qualified SHPO staff would be very likely to cause delays in properties being nominated to the National Register of Historic Places, which would adversely affect the eligibility of these properties for Federal and State historic preservation tax incentives, and/or for historic preservation grant programs, including the Save America’s Treasures grant program. A further lack or shortage of qualified SHPO staff would cause delays in compliance reviews required by Section 106 of the National Historic Preservation Act, which would drive up the costs of many Federally assisted construction projects funded by other Departments of the Federal Government. The absence of some of these services, for example, the review of Federal undertakings, would seriously and negatively impact the ability of Hawaii to benefit from many other programs of Federal assistance. [emphasis added]

News reports this week focused on the threatened cut-off of federal funding if a long list of recommendations, some dating back to a 2002 audit, are not successfully implemented within two years. But the economic cost to the state of delays in major projects could dwarf the immediate lost of federal grants that currently support historic preservation functions.

Preparation of the report was supported in part by the Army, which provided funding for a National Park Service staff person who was assigned to SHPD and assisted in writing the report.

See:

Hawaii historic preservation agency may lose critical funding, Honolulu Advertiser, 3/25/2010

Crunch Time, Honolulu Star-Bulletin, 3/25/2010