Committee forwards lease plan for county‑owned homes to house underserved residents after heated public testimony

The Hawaii County Council’s Committee on Finance on April 7 forwarded Resolution 4‑75‑26 to the full council with a favorable recommendation after extended public comment and debate over transparency, procurement and neighborhood impacts. The measure authorizes the director of finance to negotiate leases of six county residential properties to nonprofit organizations for permanent housing purposes, with one‑year terms and up to four one‑year renewal options and an approximate annual nominal rent of $10.

Supporters told the committee the leases will create urgently needed permanent housing for people who are homeless or in recovery. “These homes are not simply housing. They are therapeutic environments that include structured programming, recovery support, parenting education, and 24 hour staff supervision,” said Susami Taylor, a staff member at the Big Island Substance Abuse Council, who urged the committee to approve the measure. Multiple residents who have worked with providers testified that stable housing made recovery and family reunification possible.

But neighbors and other residents raised repeated concerns about the process used to purchase and lease the properties, the degree of public notice and community engagement, and specific operational details. Grace Manipur Larson accused the county and nonprofits of a “sweetheart” arrangement and questioned whether federal emergency rental assistance funds were being used appropriately, asking officials for audit results on roughly $33,000,000 the county has spent since 2022. Douglas Halstead said the administration’s 150‑page packet lacked lease agreements, RFPs, or clear procurement criteria and asked why some homes appear to have been purchased for use as group housing.

Housing Administrator Kehau Costa and Assistant Housing Administrator Keiko Mercado told the committee the purchases were made using U.S. Treasury Emergency Rental Assistance (ERA2) funds and other state and federal sources, and that acquisitions were completed last year to meet expenditure deadlines. Costa said the department issued a request for proposals and sought nonprofits with at least five years’ experience. She said purchased properties are deed‑restricted for affordable housing and that leases place repair, maintenance and management responsibilities on the lessee. “We will manage our properties in compliance with all federal and state and county laws, including zoning,” Costa said, adding the office conducts site visits and annual compliance reviews.

Several residents pressed for operational specifics — how many residents would be placed at each house, eligibility criteria, expected length of stay, levels of on‑site supervision, and performance benchmarks. “The community has not been provided with basic operational details including the number of residents to be housed, the level of on‑site supervision, the classification of the housing model, the criteria for resident eligibility, and the expected length of stay,” said Rebecca Marshall, a Makani Circle resident.

Council members also debated legal and process issues. Some members warned that refusing to utilize federal housing funds could complicate future grant applications; others said the process to reach this point lacked adequate community engagement and left unanswered questions about procurement. Council member Kirkwood said she would vote No because of the process and perceived risk to the county, but several colleagues supported moving the resolution forward. After reconvening from an executive session to consult with counsel about an attorney‑client memo, the committee recorded a roll call of 7 Aye, 2 No (the Chair and one other member) and the motion to forward the resolution passed.

The committee’s action does not itself lease or place residents; it authorizes negotiation and directs staff to return with formal agreements and any recommended conditions. Committee members asked housing staff to provide additional operational plans, metrics and neighborhood engagement steps as the measure moves to full council.

Next steps: Resolution 4‑75‑26 will be considered by the full county council; if approved, the finance director would be authorized to negotiate the specified leases and the Office of Housing would manage compliance and monitoring of the properties.