This from Casey over at:
Finally, I want to highly recommend He Mele a Hilo (A Hilo Song) by Ryka Aoki. It perhaps doesn’t fit your question, because it doesn’t feature LGBT characters except in passing, but it is written by a trans woman (an issue she discusses in the video linked below, actually!). I recently finished reading this book and it was so. damn. good. Check out this video of Aoki reading from the novel, which is set in her native Hawaii, written in Hawaiian Pidgin English, and starring a lovable, diverse set of characters. It was an endlessly heartwarming and endearing read. You really get a feel for everyday Hawaii on the Big Island, peppered with such magical acts as mysterious recoveries from life-threatening illnesses, beautiful spirit women who have been haunting you since childhood, and some character vaguely like Bill Gates but black and who is only recognized by a select few locals. It’s strange and wonderful.