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Council approves $4.1 million grant to Hawaiian Community Assets amid calls for audit and oversight
Summary
The council approved Resolution 384 (granting $4.1M to Hawaiian Community Assets) while at least one public speaker asked for a third‑party audit and performance review to ensure compliance and to avoid perceived conflicts of interest.
On Dec. 3, 2025 the Hawaii County Council voted to approve Resolution 384 (Resolution 384‑25), authorizing grant awards that include a $4,100,000 allocation to Hawaiian Community Assets (HCA) for acquisition of property for affordable housing and related programs.
Earlier in the testimony period Maile Lavea Malloy, who said she had been confirmed that morning to the Hamakua Community Development and Action Planning Commission, urged the council to defer the allocation to HCA until a third‑party fiscal and performance review and an audit of compliance with HUD requirements had been completed. Malloy told the council she was "not stating this as a fact" but that the community has raised concerns about overlap between HCA's services and those offered through private entities and potential HUD compliance gaps; she asked for verification before a large public investment.
Councilmember Houston moved the item; the council approved the resolution by voice vote. The recorded vote for the package of resolutions later in the agenda shows a consistent pattern of 8 ayes and one excused where recorded on similar items during the meeting. The resolution also approves additional housing grants and related funding recommendations from the Office of Housing and Community Development.
The council did not adopt a deferral in response to Malloy's request but the testimony serves as a recorded flag the council and county staff can use to shape oversight conditions, reporting requirements and any required contract terms attached to the grant award. According to Malloy's testimony, she requested (1) a third‑party compliance and financial audit of HCA covering the last five years; (2) a comprehensive performance review tied to deliverables and milestones; and (3) clear public reporting and HUD‑compliance verification before funds are released.
Next steps: The Office of Housing and Community Development will carry out the grant administration and the council may attach reporting requirements, oversight conditions and/or post‑award review requirements in administrative documents.
