REP GOEAC 092 2026-01-22 2024-2026

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REPORT OF THE COMMITTEE ON GOVERNMENTAL OPERATIONS AND EXTERNAL AFFAIRS DATE: January 22, 2026 PLACE: Council Chambers Kailua-Kona, Hawaii TIME: 9:02 a.m. Council Chair and Members Hawaii County Council Hilo, Hawaii 96720 Re: Comm. No. 686/Res. No. 445-26 Your Committee on Governmental Operations and External Affairs, to which was referred Resolution No. 445-26, reports as follows: Resolution No. 445-26, transmitted by Council Members Heather L. Kimball and Holeka Goro Inaba via Communication No. 686, dated December 24, 2025, requests the County Auditor to conduct a performance audit of the use and effectiveness of Real Property Tax revenues appropriated for housing and homelessness. The scope of the audit includes evaluation of performance with respect to the Office of Housing and Community Development's Strategic Roadmap, date indicators and metrics, and compliance with the County Code. Member Kimball said that the housing and homelessness fund will sunset in 2027 and that the amount of work needed to be done in reviewing this program seems appropriate to begin the audit now. She added that considering recent conversations, it seems appropriate to evaluate this program in a thorough way. She encouraged everyone to look at the `Be it resolved" clause and the criteria the auditor is being asked to review. Member Inaba said that considering some of the scrutiny that service providers and council members encounter within this fund it's a great opportunity to make sure things are running well and to determine whether this program should continue, and if so, how. County Auditor Clare McAdam and Assistant Housing Administrator for the Office of Housing and Community Development (OHCD) Keiko Mercado were present in Hilo to answer questions, and both stated that they are in support of this review. Committee Member Dennis "Fresh" Onishi asked for a timeline and whether it would be ready before the next funding award period. Ms. McAdam said she understood the upcoming deadlines and that is what they are aiming for but cannot commit to anything until after they get through the scoping period. Committee Member Ashley L. Kierkiewicz asked that OHCD and the Auditor meet to discuss scoping and timeline before this resolution is heard again at Council. She echoed other members around the importance of receiving the report before the fourth round of funding. She also stated that there is nothing preventing Council from initiating a bill to pause on funding or cancel funding altogether before 2027. Committee Member Rebecca Villegas asked for confirmation if this audit would include the service providers' budgets and where and how money has been spent. Ms. McAdam replied yes. GOEAC Report No. 92