While 350 Native Hawaiians have been awarded leases for the East Kapolei I project, the largest residential development in Department of Hawaiian Home Lands' history, they will have to wait at least a year before construction begins on their homes.

For James Figueroa, who was awarded one of the lots on Sunday, that means extra time to get his finances in order.

"Very exciting," he said of his award. "But I still have to go through the financial process."

That's because leases in the subdivision were awarded as an Undivided Interest Award, meaning the beneficiaries will be able to accept a lease award now and have two to three years to qualify for a home loan while the subdivision is developed.

"The Undivided Interest Lease award was designed to help those who have been on the wait list for a long time, but have not been able to accept a lease award because they couldn't qualify for a loan," said Micah Kane, Hawaiian Homes Commission chairman. "It will be one to three years before the house is built, so it provides people with time to prepare to financially qualify for a mortgage."

Figueroa, who lives with his family in 'Ewa Beach, said being awarded the lease will mean a new start for his wife and three children. He had just missed being awarded a unit in July when 250 lots were awarded in the Kaupe'a subdivision in Kapolei.

"I missed that one by two people. I thought I was going to miss this one, too," he said. "I was sitting outside and when I walked in they called my name. Wow, what a feeling."

The East Kapolei I project is on a 97-acre parcel at the end of Kapolei Parkway. Lot sizes are expected to average 5,000 square feet.

While this is the largest DHHL project to date, it is still limited in the number of Hawaiians it can get into homes. But officials say that the department is committed to getting the thousands more on the residential waiting list into a home.

The department's effort is being applauded by the Native Hawaiian community.

"It's heading in a positive direction but there is always more progress to be made," said Haunani Apoliona, chairwoman of the Office of Hawaiian Affairs. "Three hundred fifty awards is a significant step forward. But there is still a great need."

About 7,000 families are on the DHHL waiting list on O'ahu alone, according to Kane. By year's end, the department will have awarded more than 2,500 units in three years. The agency, which is tasked with a federal mandate to place qualified Hawaiians on land set aside for them, wants to award 6,000 statewide residential leases to Hawaiians by 2010.

On-site improvements for East Kapolei I, including construction of roadways, drainage, sewer, water and electrical systems, are estimated to cost $31.7 million. Off-site improvements, including a 4 million-gallon water reservoir, water transmission, water mains and sewer trunk lines, are estimated to cost an additional $20 million for the development.

Infrastructure work has begun and home construction is expected to begin in 2008.