2023-01 Office of Housing and Community Development Affordable Housing Credits

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Tyler J. Benner County Auditor County of Hawai'i Office of the County Auditor Ph 808.961.8386 County of Hawai'i Office of the County Auditor 120 Pauahi St., 309 Hilo, HI 96720 F 808.961.8905 County of Hawai'i Seal www.Hawaiicounty.gov February 1, 2023 Honorable Heather Kimball, Council Chair and Members of the Hawaii County Council Hawaii County Council 25 Aupuni Street Hilo, Hawaii 96720 Dear Council Chair Kimball and Council Members, In accordance with generally accepted government auditing standards and the Hawaii County Charter Section 3-18(d)(2), the Office of the County Auditor conducts or causes to be conducted: performance and/or financial audits of the funds, programs, services, and operations of any county agency, executive agency, or program, as set forth by the county auditor in an annual audit plan that shall be transmitted to the county council and the mayor and file with the county clerk as a public record. We have completed our engagement of the Affordable Housing Credits at the Office of Housing and Community Development (OHCD). The objective was to evaluate the internal controls, the efficient issuance and utilization of affordable housing credits, compliance with Chapter 11 of the Hawaii County Code, and program efficacy. Our review of the evidence showed that since the County's Affordable Housing Policy's inception in 1988, OHCD issued at least 1,811 credits. 638 (35.2%) credits have been sold at least once. Historically, private credit sales have varied in price from as little as $5,000 to as much as $75,000 each. Since program inception, 335.8 credits have been redeemed for an average of 9.87 credits per year. Summary of Affordable Housing Credits Description Total Credits Issued Redeemed Outstanding Credits 11811 335.8 11354.2 Compiled Office of the County Auditor Hawai`i County is an Equal Opportunity Provider and Employer