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HomeMy WebLinkAboutREP FC 136 2026-04-07 2024-2026DATE: April 7, 2026 PLACE: Council Chambers Hilo, Hawaii TIME: 12:00 p.m. Council Chair and Members Hawaii County Council Hilo, Hawaii 96720 REPORT OF THE COMMITTEE ON FINANCE Re: Comm. No. 744/Res. No. 475-26 Your Committee on Finance, to which was referred Resolution No. 475-26, reports as follows: Resolution No. 475-26, transmitted by Housing Administrator Kehaulani M. Costa via Communication No. 744, dated February 11, 2026, authorizes and directs the Director of Finance to negotiate the disposition of certain real property by lease to nonprofit organizations for permanent housing purposes. This resolution authorizes the negotiation of six one-year leases with four one-year renewal options at an approximate annual cost of $10 for six residential properties to be used as long-term permanent housing for underserved populations. Finance Committee Meeting of March 3, 2026 Housing Administrator Kehaulani M. Costa, Assistant Housing Administrator Keiko Mercado, Deputy Corporation Counsel Sylvia Wan, and Going Home Hawaii Chief Executive Officer Les Estrella were present in chambers for questions. Ms. Costa provided a detailed overview of this measure. She thanked the community of Makani Circle for their testimony and for expressing their concerns on this matter as one of the properties of interest is listed there. Committee Member Jenn Kagiwada requested information regarding the process of acquiring these properties. Ms. Wan provided an overview of this process. Committee Member Ashley L. Kierkiewicz acknowledged a failure by the administration in community engagement stating that she needed to see more accountability moving forward. Multiple Committee Members shared the same concerns and agreed with Ms. Kierkiewicz about the lack of transparency. Committee Member Dennis "Fresh" Onishi asked community member Lisa Akimseu to provide a statement explaining how her property was acquired. Ms. Akimseu stated that she did not learn that her property would be awarded to the nonprofit organization Going Home Hawaii until much later. She stated that if she had known, she would never have sold the property as she was under the impression that it would be used as a transitional home for people with disabilities, not for people transitioning back into society after serving time in the justice system. Mr. Estrella provided comments on his organization and the'services it provides to justice -involved persons. He provided more details on the types of services the organization would offer, but overall he stated that if the community is not in support of this program, he would like to withdraw his proposal and find another location that would be a better fit for their program. FC Report No. 136 FC-136 Page 2 April 7, 2026 Ms. Kagiwada proposed an amendment via Communication 744.1, which would remove Tax Map Key: 2-4-004:045 as a listed property for long-term permanent housing. Committee Member Michelle Galimba spoke on the amendment and inquired about how this would affect funds and the acquisition of another property. Ms. Costa stated that this would need to be looked into. Resolution 475-26 was amended to Draft 2, with nine members voting "aye." Mr. Onishi suggested a postponement to give the department more time to engage the community and increase transparency. Resolution 472-26, as amended to Draft 2, was postponed to March 17, 2026. Finance Committee Meeting of March 17, 2026 Committee Member Holeka Goro Inaba stated that the Office of Housing and Community Development requested that this matter be postponed to allow more time to clearly address legal concerns regarding this matter. Resolution 475-26, Draft 2, was postponed to April 7, 2026. Finance Committee Meeting of April 7, 2026 Housing Administrator Kehaulani M. Costa and Deputy Corporation Counsel Sylvia Wan was present. Ms. Costa provided an update on this matter and the steps taken since the initial hearing on March 3, 2026. Committee Member Ashley L. Kierkiewicz asked whether a Council vote against this matter would affect other funding opportunities. Ms. Costa stated that it is always a consideration. Ms. Kierkiewicz stated that there is a significant stain on this resolution due to a complete lack of community engagement and she is wrestling with whether to approve it at this time. Committee Member Dennis "Fresh" Onishi asked if there was an opportunity for the nonprofit organization that receives these leases to apply for other grants provided by the department. Ms. Costa confirmed that it is a possibility. Resolution 475-26, Draft 2, went into Executive Session to discuss and consult with Corporation Counsel. Ms. Galimba provided a brief overview of what was discussed during the Executive Session. Ms. Wan provided an overview of the legal implications of not approving this matter and explained the federal guidelines. Your Committee on Finance is in accord with the purpose and intent of Resolution No. 475-26, as amended to Draft 2, and recommends its adoption. Ikh AYES NOES ABS EX GALIMBA X HUSTACE X INABA X KAGIWADA X KANEALI`l-KLEINFELDER X KIERKIEWICZ X KIMBALL X ONISHI X VILLEGAS X Respectfully submitted, MATT ] CHAIR FC REPO T NO.: 136 ADOPT : APR 2 MnM6