Finance committee postpones lease plan for county‑purchased homes after residents raise transparency, conflict concerns

The Hawaii County Council Committee on Finance postponed consideration of Resolution 475‑26 on March 17 after several residents testified that recent county purchases of residential properties lacked transparency and risked neighborhood harm.

Multiple public commenters told the committee the county’s housing acquisitions — which residents said originally numbered seven — were being repurposed as long‑term housing leased to nonprofit operators rather than leased directly to individuals. Douglas Halstead told the committee he had filed written testimony and public records requests and said he believed the county "may have bought a potential $6,000,000 mess," criticizing what he described as delays and barriers to obtaining records. Marcia Krieger said federal funding requires long‑term use and raised a potential conflict of interest involving the realtor for one house, asking whether ethics advice was sought.

Other residents described neighborhood safety and suitability concerns. Ashley Ferraro, who said she previously worked as an outreach housing coordinator, told the committee that a 4,400‑square‑foot home intended for the program resembled "a dorm situation" if nonprofits lease the property and that the public has had no role in selecting nonprofit lessees. Tom Krueger, Joan Toledo and Dave Baptist also urged the committee to reject or defer the measure, citing limited public notice, narrow streets and other local impacts.

Housing Administrator Kia Acosta told the committee the Office of Housing and Community Development requested the postponement to gather the documents council members asked for and to obtain a legal memo from corporation counsel addressing the federal Fair Housing Act and the Americans with Disabilities Act to ensure planned actions comply with federal law.

Council member (motion-maker) moved to postpone Resolution 475‑26 to the April 7 committee meeting; the motion was seconded by Council member Onishi and carried with seven members voting in favor and two members absent. The resolution as read at the meeting directed the director of finance to negotiate leases for six residential properties with one‑year terms and renewal options at an approximate annual cost of $10 per property; residents and some presenters referenced seven purchases in their testimony, a discrepancy the committee said it will clarify during the postponement.

Next steps: Housing staff will work with corporation counsel and return on April 7 with the requested records, a legal memorandum on Fair Housing and ADA issues, and additional clarification on the number of properties and lease terms discussed at the hearing.