John D. Kaupiko signed up to receive his share of Hawaiian homestead lands more than 40 years ago, but until yesterday he never felt the need to accept it.

So after deferring or turning down offers of homestead land or homes "eight to 10 times," Kaupiko decided yesterday to shelter his grandson by accepting a state Department of Hawaiian Home Lands house lot.

"How many young people have the opportunity to get in on a project such as this?" said Kaupiko, a 72-year-old Hawai'i Kai resident. "I gotta thank the department. It's wonderful and I'm glad a lot of Hawaiians are next."

Kaupiko was one of 76 people awarded a Hawaiian Homes house lot yesterday at a selection event attended by more than 700 people in Kekuhaupi'o Gym at the Kamehameha Schools' Kapalama campus.

Eventually, 326 lots will be awarded at the Kaupe'a subdivision in Kapolei being developed by the DHHL. Kaupe'a is a "turnkey" project, meaning a contractor will build houses on the lots. Lessees get a choice of five models.

The homes cost about $200,000 for two bedrooms and about $266,000 for four bedrooms — about half the market price. The lots average about 5,000 square feet. Construction will begin in January, department director Micah Kane said.

The subdivision is one of several master-planned communities DHHL is developing. DHHL hopes to award 2,100 new homes in the next 18 months, Kane said.

"We're gonna be relieving pressure from a financial demographic no one else is able to serve," Kane said. "There are people that have been on the list for 40 years and they will get lots today."

More than 18,000 people are on the department's waiting list for homestead lots.

The 1921 Hawaiian Homes Act set aside 200,000 acres of ceded lands for the use of people with 50 percent or more Hawaiian blood.

Residents pay $1 a year to lease the land. Some homestead awards are for undeveloped land; others, like Kaupe'a, come with homes paid for by the lessee.

The Department of Hawaiian Home Lands invited people to yesterday's selection meeting based on how long they have been on the waiting list. One had to be present to claim the land award; if an awardee was not there, officials moved to the next name on the list.

By 7:30 a.m. the crowd at Kekuhaupi'o Gym was spilling out onto the adjacent field. Inside, the mauka bleachers were packed to capacity.

Children, parents and grandparents fidgeted impatiently through a 50-minute presentation on the selection process.

Gary Kama, Kaupiko's 26-year-old grandson and a father of two, said he was thrilled by his grandfather's generosity.

"It's great and he's happy to do it," Kama said. "It's a great opportunity for me because it's so hard to get houses these days."

Some of those selected to receive lots yesterday had turned down previous offers.

Gay Keaunui said she registered for the DHHL waiting list 10 years ago and has twice been offered land or a home.

The first unit she was awarded had termite damage, she said, so she decided to turn it down. When the next opportunity arose several years later, she could not qualify financially.

"I hope they call my name," Keaunui said. "I just need them to call my name along with the other 700 people in there."

Richard Panui, a 34-year-old construction worker from 'Ewa Beach, has been on the list for six years. He feels like he got a late jump on the opportunity, yet hopes to get a lot someday.

"We're kind of like way at the bottom (of the list)," he said, as the names were read. "I don't think we're gonna make this one."

The 76 lots awarded yesterday are the first phase of the Kaupe'a subdivision. Phase 2, with 128 homes, will be offered in April and Phase 3, with 122 homes, will be offered in June, the department said.

Reach Peter Boylan at pboylan@honoluluadvertiser.com.