Public-private model proposed to expand Guam housing on CHamoru lands

By Ron Rocky Colom

With Guam facing a housing shortfall of nearly 10,000 units, a group of University of Guam graduate students has proposed a public-private partnership (PPP) blueprint for turning idle CHamoru Land Trust Commission (CLTC) properties into affordable housing communities.

Their detailed proposal, presented in spring 2025 under the guidance of UOG professor Judith Guthertz, outlines legal amendments, financial models and infrastructure solutions that could bring long-awaited relief to thousands of CHamoru families still waiting for residential leases.

“The initial purpose of the CHamoru Land Trust Commission was to return ancestral lands to the indigenous people of Guam,” said student presenter Evander DeGuzman. “Many of the applicants on the waiting list are there for residential purposes, yet much of the land remains idle.”

The CLTC was created in 1975 under Public Law 12-226 to restore the CHamorus' ancestral land rights, particularly those displaced during and after World War II. Today, its mission continues under complex legal, infrastructural and economic conditions.

As of 2022, CLTC managed 11,666.88 acres across the island: 5,911 in the north, 1,601.45 in the central region and 4,153.48 in the south. However, 3,274.98 acres remain unregistered and legally ineligible for lease under the current law. Another 3,048.35 acres have been allocated for residential and agricultural use, and 2,911 leases are active.

Despite this, more than 8,889 applicants remain on the CLTC waiting list—a majority of whom are seeking residential land. Many parcels sit idle due to the lack of infrastructure, unresolved surveying, or missing registration with the Department of Land Management.

The students' proposal, titled "From Promise to Property: A Public-Private Blueprint for Attainable Housing on CHamoru Land Trust," presents a two-tiered development model. It blends single-family homes and multi-family dwellings such as duplexes, townhomes and condominiums. Each unit would begin at roughly 700 square feet, providing a modest but functional living space for working families, retirees and multigenerational households.

“We’re talking about homes that working families can afford without relying heavily on subsidies,” said student Kaylyne Roberto. “These are middle-market homes that fill the gap between subsidized housing and high-end development.”

The team endorses the design-build-finance-operate-maintain structure, where a private developer handles construction, finances the entire project and maintains the property over a 15- to 20-year term. When the term expires, full ownership reverts to the CLTC. This structure reduces public financial burden while holding the private sector accountable for long-term housing quality.

“This means no need for upfront public funding, which is critical given Guam’s limited fiscal resources,” Roberto said. “It builds accountability into every stage.”

The team also drew inspiration from the Hawaiian Homelands Rent with Option to Purchase model. Under the Guam version, eligible CLTC beneficiaries would rent a unit for 15 years before having the option to purchase it. If they choose not to buy, they could continue under a fixed-rate lease. Should a tenant pass away during the lease, a qualified descendant could assume the lease, preserving the family’s place in the program.

Student Harley Edeluchel Jr. said this approach was informed by examining the five-phase Hawaiian process. These phases include public consultation, environmental reviews, land surveying and engineering, infrastructure construction and housing development.

“Our proposal mirrors these phases to ensure community input and legal compliance,” Edeluchel said. “It’s not just about building homes. It’s about building community.”

As for construction and utility costs, MacQuinn Manning said local contractors cited figures between $180 and $400 per square foot, depending on materials, location and labor availability. A single unit may cost between $180,000 and $280,000. In the southern part of the island, logistical challenges such as distance and elevation could increase expenses.

Utility installation is another major cost. GPA engineer Louis Camacho told the students it may cost $10,000 or more per unit for complete power infrastructure, including power poles, underground lines and risers.

For water, Mila Uy of Guam Waterworks Authority estimated $5,600 per unit, factoring in special development charges for both freshwater and wastewater hookups.

Overall, the estimated cost for developing 25 single-family units is $3.8 million. For 25 multi-family units, the total rises to approximately $7.4 million.

But legal limitations loom large. The law authorizes the CLTC to issue leases, not deeds. That limitation prevents beneficiaries from owning homes on CLTC land. The students propose amending the law to authorize the construction of both single- and multi-family homes and to allow a path to ownership through PPP frameworks.

They also recommend allowing the CLTC to construct residential developments for eligible beneficiaries through PPPs.

The housing market in Guam has also seen sharp inflation, with the average price of a single-family home nearly doubling from $213,000 in 2014 to $420,000 in 2024, according to economist Siska Hutapea. These figures, cited in the Pacific Island Times, have made homeownership out of reach for many middle-income families.

“The market has left many families behind,” said student Rency Une. “A private developer may need to charge market or above-market rent to recoup their investment. That risks undermining the goal of affordable housing.”

To address this, the proposal recommends rent control options and rental subsidies, including Section 8 housing vouchers administered by the Guam Housing and Urban Renewal Authority. Additionally, programs like the USDA Section 502 Direct Loan and the Department of Veterans Affairs home loan guarantee program could help eligible residents transition from renting to ownership.

To encourage private sector participation, the students propose a series of tax incentives aimed at making affordable housing development more appealing. These include business privilege tax exemptions under Public Law 36-131 for developers who construct five or more affordable units.

They also recommend the use of qualifying certificates, which offer tax abatements in return for capital investment and job creation

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Additionally, they suggest leveraging discretionary BPT exemptions, which allow for tax relief based on the specific nature and impact of a developer’s business activity.

“Incentives play a major role in PPP success,” Edeluchel added. “Without them, private developers have less motivation to participate.”

As part of their final presentation, the students thanked officials who contributed to their research, including Joey Cruz of CLTC, Fernando Esteves of GHURA, Tara Tellei of the Department of Public Works and Dr. Gena Rojas of the University of Guam.

The proposal came at a critical policy juncture. Public Law 37-125 appropriates $9 million from fiscal year excess revenues to develop infrastructure on CLTC land in Yigo. According to lawmakers, this could support 166 new residential leases, though further administrative and legal actions are needed to break ground.

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