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HomeMy WebLinkAboutREP GOEAC 092 2026-01-22 2024-2026REPORT 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 GOEAC-92 Page 2 January 22, 2026 Committee Member James E. Hustace said that the timing of this audit is critical. Member Hustace asked what the strategic roadmap language is that was mentioned in the resolution? Member Kimball replied that shortly after this fund was created by the Council a resolution was passed that required OHCD to create a strategic roadmap plan. She said that OHCD can circulate that document for review before the next meeting for those that were not familiar with it. Committee Member Michelle M. Galimba mentioned the SAS Services study that was recently done with various recommendations. Member Galimba said that OHCD has moved on some of the recommendations and is wondering how they will interact with one another as there is overlap. Member Kimball answered that the intention with this resolution is to get a little deeper into those recommendations and provide an evaluation of the effectiveness and the impact of County funding on this program, including whether or not to continue this program, and if not, where else the funding could go to benefit community. Ms. McAdam added that she would be looking at the differences between the SAS Services report and the roadmap and any changes that have been made. Committee Chair Jenn Kagiwada asked if the audit will be including all three rounds of funding. Ms. McAdam asked if that was included in the resolution and that they could do that if it was their intention. Member Kimball said that it should include all fiscal aspects of the program, as it is a comprehensive review. Chair Kagiwada agreed that this meant all the funding. Chair Kagiwada said there had been concerns in the past about favoritism within the grant awardees, and it would be helpful to see the selection criteria OHCD used to keep things consistent. Ms. McAdam said the audit would include that. Chair Kagiwada asked OHCD when they would anticipate needing to know what would be occurring with this program potentially continuing. Ms. Mercado said that at least enough time to figure out staffing and that she'd have to look at other timing deadlines they are up against. She said she would get back to them with a more detailed timeline. Chair Kagiwada requested that it be brought to the attention of the Council if it appears that they aren't going to receive the audit and have an opportunity for deliberation before OHCD needs to begin looking at funding for the next cycle. Chair Kagiwada suggested that there could be a temporary extension of the funding beyond 2027 while the audit is concluded, if needed, to allow OHCD to continue issuing funding without disruption of services. Member Onishi said that when this funding mechanism was created, the legislation was about the funding and was not detailed on how this program was to be created. He stated that he believes that OHCD set the formatting. Ms. Mercado said yes, the strategic roadmap fell under the purview of OHCD. Your Committee on Governmental Operations and External Affairs is in accord with the purpose and intent of Resolution No. 445-*1 and recommends its adoption. slm AYES NOES ABS EX GALIMBA X HUSTACE X INABA X KAGIWADA X KANEALI°I-KLEINFELDER X KIERKIEWICZ X KIMBALL X ONISHI X VH.LEGAS I X Respectfully submitted, COMMITTEE ON GOVERNMENTAL OPERATIONS AND EXTERNAL AFFAIRS NN KAGWkDA, CHAIR GOEAC REPORT NO.: 92 ADOPTED: FEB 0 4 2026