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Chapter 1 <br /> <br />Introduction <br /> <br />What is the primary function of OHCD? <br /> <br />The Office of Housing and Community Development (OHCD) administers the county's housing <br />fund. OHCD is responsible for the planning, administration, and operations of all the County of <br />Hawai`i's housing programs. Their mission is to provide for the development of viable communities <br />through decent housing, suitable living environments, and expanded economic opportunities. <br />OHCD's - Community Development Division, Planning Branch drafts and executes affordable <br />housing agreements. <br /> <br />The Office of Housing and Community Development is composed of five divisions and 14 <br />branches: <br /> <br />• Administrative Services <br /> o Accounting, Technology, and Clerical Services <br />• Community Development <br /> o Development <br /> o Planning <br />• Community Engagement <br /> o Homeless Program <br /> o Community Services <br />• Existing Housing <br /> o Special Purpose Voucher Programs (Section 8), Housing Program, Planning, <br /> Rental Assistance, and Support Services <br />• Grants Management <br /> o Grants Administration <br /> o Workforce Development <br /> <br />Request for Performance Audit. <br /> <br />Beginning in July 2022, court documents and various media outlets reported a former Hawaii <br />County housing employee was charged with fraud and pleaded guilty after allegedly taking nearly <br />$2M in bribery or kickbacks for approving specific affordable housing projects. Policy and <br />procedures were subsequently developed in response to this event. <br /> <br />In September 2022, Hawaii County Council's Resolution No. 467-22 (Draft 2) requested the <br />Office of the County Auditor conduct a performance audit to ensure the efficient issuance and <br />utilization of affordable housing credits that included a comprehensive accounting of all credits <br />issued outstanding, transferred, or redeemed, and recommendations to enhance program <br />controls, efficiency, and effectiveness. <br /> <br />Although OHCD has several programs that receive federal grants that are routinely audited, there <br />were no prior audits of the affordable housing program conducted. In addition to Council's request, <br />the Office of the County Auditor determined that a thorough examination of OHCD's affordable <br />housing processes, policies, procedures, and practices was warranted. <br /> <br />Introduction 5 <br />