About 110 families received 75-year leases to property after winning a battle to stop development in Waiahole and Waikane valleys in the mid-1970s.

The state stepped in to resolve the controversy that had hundreds protesting and blocking roads. The state purchased about 600 acres in 1977 and promised to keep the land in agriculture use.

Families that lived and farmed there were given priority when the leases were handed out in 1998. Some 92 leases are active.

Last month the Lagapas and more than a dozen other families were told by the Housing and Community Development Corp. of Hawai'i to rectify lease infractions or face eviction today. Infractions included failure to build a home; to pay lease rent, taxes and water; to install septic systems; or to farm the land.

Since the original notification, three families have remedied their violations and the agency has rescinded six other notices, giving lessees time to comply with the requirement to build a house. About 10 remain under eviction status for other infractions.

The Lagapas and others who are trying to build homes said they can't comply because the state is standing in the way. The agency has failed to set a value on the farm land so lessees can purchase their leasehold interest and then have collateral for a loan.

The state housing agency and Department of Hawaiian Home Lands struck a deal to transfer some of the agency's lands in the valleys to Hawaiian Home Lands, with the intent that all the lands would go to Hawaiian Home Lands sometime in the future when leases end.

"It's so depressing because it's happening now, because of the holidays," said Cookie Lagapa, 54. "You gotta worry about this now and it's supposed to be a happy time of the year."

For the Lagapas and others, the transfer would end all dreams of someday negotiating with the state to continue the leases in their children's and grandchildren's names. And if they lose their lease, it won't go to another Waiahole/Waikane family, it will go to a Native Hawaiian with 50 percent Hawaiian ancestry.

"I think maybe they don't want to give it to us now because they want to give it to Department of Hawaiian Home Lands," Lagapa said. "Because how come all of a sudden now?"

But Stephanie Aveiro, executive director of the Housing and Community Development corporation, said the state is backing away from evicting people like the Lagapas, who have no other violation other than not building a home.

The state helped create the problem for people like the Lagapas and it will help them get a mortgage by asking the agency's board to set the rate for the leasehold interest in farm land, Aveiro said.

"We're willing to be more lenient while we resolve this residential piece," she said. "We're backing off to give the board a chance to act."

Aveiro said the department does not have any plans to take action against the lessees today but will ask its board when it meets Dec. 16 to help lessees secure loans for their homes, something that was requested four years ago.

Waiahole Valley Road, where many of the leases are located, has an eclectic collection of old and new homes in varying styles and sizes. House lot sizes also vary, but are mostly neatly kept. Several host a number of cars, indicating that perhaps more than one family lives there. Tall trees shade the road and muffles sounds that gives the area a peaceful quality.

Beyond the homes and along part of the road are farm lots, where papaya and other crops are grown. But the lush green valley is mostly open space, a testament to the struggles of the community 30 years ago.

In the meantime the Waiahole-Waikane Community Association, which represents most of the leaseholders, is evaluating what it may do.

It stood against transferring the Housing and Community Development corporation land to Hawaiian Home Lands. Its major concerns are the water and how existing leases may change once the latter agency takes over. Hawaiian Home Lands would take charge of the farm, commercial and vacant residential leases. It cannot manage residential leases to non-Hawaiians. Housing and Community Development will continue to manage those leases.

Housing and Community Development has said it wants to transfer the land to Hawaiian Home Lands because it has experience in managing farms, commercial property and residential lots. The latter entity has said it is well suited for the job, but Micah Kane, director of Hawaiian Home Lands, said at a meeting last week that he would not succeed if he weren't welcome.

"We don't intend to be some place that we cannot help people have better lives," Kane told about 150 Waiahole and Waikane residents. "We come with a pure heart. We come with the intent to help."

The department has promised to meet with the community and various representatives to discuss how to best proceed with the transfer. No expected date for the transfer is set, with Hawaiian Home Lands promising to take as much time as is needed to build trust and to satisfy the community, said Lloyd Yonenaka, Hawaiian Home Lands spokesman.

"We're moving with the best intention to do what's best for everybody," Yonenaka said.

But the Waiahole-Waikane Community Association has serious concerns about the terms of leases that are transferred, said Bradley Chong, attorney for the association.

"In discussions with the steering committee and Kane it appears that any leases that transfer will in all likelihood be revised," Chong said, adding that Hawaiian Home Lands could issue a new lease, change the rent or change the length of the lease.

People also worry about the water, said Emil Wolfgramm, with the Waiahole Landowners Association. The Waiahole Ditch water that was once sent to Leeward O'ahu to irrigate sugar crops still has potential for development and people in the valley want to keep the water in Windward. Wolfgramm said Housing and Community Development officials have never wanted to discuss the issue but that Kane will.

"So as far as I'm concerned DHHL is a better deal than HCDCH," Wolfgramm said.