Committee approves request for performance audit of real property tax revenues for housing and homelessness

The Committee on Governmental Operations and External Affairs voted to forward Resolution 445-26 to the full Hawaii County Council with a favorable recommendation. The resolution asks the county auditor to conduct a performance audit of the use and effectiveness of real property tax (RPT) revenues appropriated for housing and homelessness, including evaluation of the Office of Housing strategic roadmap, data indicators and metrics, and compliance with the county code.

Councilmember Heather L. Kimball, an author of the measure, said a mid-program audit is appropriate as the program approaches a 2027 sunset and to address concerns raised about effectiveness and potential "double-dipping." "It seemed appropriate to start now also in light of some of the recent conversations about what we see on the ground," Kimball said, and urged colleagues to review the 'be it resolved' clauses for additional benchmarks they want the auditor to consider.

Councilmember Inaba voiced support and cited recent findings that some providers may have used funds in ways not aligned with their contracts, which he said the audit should investigate. "There are other organizations that, the county has found recently to have used funds, in ways not aligned with the contract they were awarded," Inaba said. County Auditor Clyde McCallum said his office has read the resolution, has reached out to housing staff and is prepared to begin if the council so resolves, but he could not yet give a definite completion timeline until the auditor's office and housing scope the work.

Kiko Mercado, assistant housing administrator, told the committee the Office of Housing supports the audit and expects to cooperate. Members pressed the auditor about timing because the program has additional funded rounds: Mercado said the office is initiating round 3 and preparing for round 4; staffing and procurement decisions depend on having the report in time. Auditor McCallum said the auditor's office understands the priority and will work with housing but could not guarantee delivery until the scope and staffing are determined.

Councilmember Kirkowitz urged the auditor to provide a timetable (six, 12 or 18 months) and suggested the auditor coordinate with external partners such as OECD to estimate timing; she also noted the council retains the option to introduce legislation to pause or cancel future funding rounds if warranted. The committee approved the resolution and forwarded it to the full council with a favorable recommendation (committee record indicated eight ayes and one absence at the time of the vote).

The resolution instructs the county auditor to examine fiscal aspects of the program, review recipient-level spending and selection criteria, and report findings to the council to inform decisions about continuing future funded rounds.