2018 Annual Community Assessment Report

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it otMrwrp. r I �G U.S.Department of Housing and Urban Development ;* i, 1.1; * Honolulu Field Office-Region IX % L 1132 Bishop Street,Suite 1400 ., Honolulu,Hawaii 96813 `' !+ i1 4 °� ,04 www.hud.gav r n espanol hud.gov t , Lt I November 4, 2019 The Honorable Harry Kim Mayor of the County of Hawaii 25 Aupuni Street Hilo, HI 96720 Dear Mayor Kim- 1 -a 3 SUBJECT: Annual Community Assessment Report Program Year 2018 This letter is to convey HUD's assessment of the County of Hawaii's (County's) performance for its 2018 Community Planning and Development(CPD) Program Year. The report reflects the County's efforts to ensure HUD program compliance. As part of HUD's annual review, the Department wants to take this opportunity to address the Community Development Block Grant (CDBG) program timeliness requirements,and the importance it plays in ensuring that the intent of the CDBG program is achieved. HUD CDBG regulations require recipients to carry out their CDBG activities in a timely manner, thus ensuring low- and moderate-income persons are assisted. The standard requires grantees to he at a 1.50 CDBG timeliness ratio 60 days prior to the end of their program year. HUD is pleased that on the test date of May 2, 2019, the County had a CDBG timei inea, ratio of 1.47. The enclosed Annual Community Assessment Report reflects HUD's assessment on the County's implementation of its CPD programs. Please note that the report identifies the County as a High-Risk grantee due to issues related to misrepresentations by the County in regards to HUD's CPD programs. Of concern is that in the last three years the County has either mispresented a situation or identified a regulatory loophole to allow misleading information to influence program decisions. The first involved HUD's environmental review process on a major housing development at the end of the last County administration, and the second involves the County's current efforts to secure CDBG-DR funding directly to the County. The County will have 30 days from the date of this letter to comment on the report. Should the County not wish to comment on the report, or fails to comment within the above time period, please consider the report final and make it available to the public using your standard notification process. Should you have questions regarding our assessment, please call me at (808)457-4678. Sincerely, Mark A. Chandler, Director Office of Community Planning and Development Enclosure