Hawaii County approves $10.5 million in homelessness and housing awards amid heated testimony over fairness and oversight

HILO — The Hawaii County Council adopted Resolution 46‑25 on Jan. 31, approving roughly $10.5 million in year‑3 awards from the county’s Homelessness & Housing Fund after extended public testimony and a detailed line‑by‑line review of nonprofit budgets.

Council members voted 6–3 to adopt the measure as amended. The administration had presented revised award amounts and itemized budgets after reviewers identified some line‑item reallocations to meet a 10 percent administrative‑cost cap set by county code.

Public testimony reflected deep division: dozens of residents, frontline workers and nonprofit leaders urged the council both to approve the grants quickly to avoid service disruptions, and to pause particular awards until perceived conflicts or procurement irregularities were resolved.

Supporters from Hope Services, Big Island Substance Abuse Council (BISAC), Neighborhood Place of Puna and other organizations described direct service impacts if funding were delayed. "These funds support critical services for individuals leaving incarceration and the most vulnerable members of our community," said Lester Estrella of Going Home Hawaii. Hope Services’ Kristen Alice told the council her organization’s women’s shelter has 26 beds and that the programs ‘‘save lives’’ and need steady funding.

Opponents — including Karis Higginson and several testimony teams representing Humanity Hale and smaller community providers — alleged that intellectual property was taken in a private meeting and then used by another organization to win approximately $400,000 for the Anchor Point youth program. "Humanity Hale's proposal was stolen and repurposed by another organization," Higginson said, urging the council to reopen the request for proposals for that award.

Neighborhood Place of Puna executives responded that their Anchor Point program was developed independently and that the organization has placed families into housing and runs multiple existing programs. "Homelessness providers have consistently shown up for this community," Neighborhood Place Executive Director Paul Norman said.

During deliberations, council members and staff focused on several recurring issues raised in testimony and in financial reviews: whether certain costs should be classified as administrative overhead versus direct program expense (utilities, audits, master leases), how salary and fringe allocations were calculated, and whether some applications included ineligible costs such as building purchases (administration advised several applicants to change requests from acquisition to master‑lease models).

Housing Administrator Kehau Acosta and finance staff explained that staff reviewed budgets with corp counsel and moved some items between program and administrative lines to comply with the 10 percent limit. The administrator said the application and scoring process ranked proposals on outcomes, and that award adjustments reflected eligibility rules rather than changes in selection ranking.

Council members asked awardees for specifics such as numbers of beds, staff headcount, and the frequency with which the coordination center received and resolved calls. Neighborhood Place said its island‑wide coordination center functioned as a 1‑stop referral and resource hub, recording more than 2,461 calls from June–December 2024; follow‑up calls showed roughly 50 percent success in referral outcomes in the two‑week checks the group described.

Council debate included one proposed amendment to strip the Neighborhood Place coordination center award from the package; that amendment failed 7–1. The council then called the question and adopted the amended resolution by roll call (Ayes: Galimba, Eustace, Kaguata, Kirkowitz, Kimball, Onishi; Noes: Kleinfelder, Chair Inaba and one other recorded as No). The adopted action will award year‑3 funding to nine organizations across the island — with amended budgets and reporting obligations.

The council asked the administration to provide clearer guidance to applicants about allowable administrative expenses and to improve transparency in reporting and outcome metrics going forward. The county auditor reported that complaints and concerns about HHF had been received and that initial contact with county staff had been made.

The council’s action funds a mix of emergency shelters, transitional housing, re‑entry and recovery services, and outreach/case management programs. Several members said they expect follow‑up oversight, audits and performance reporting before future funding cycles.

(Reporting note: Budget figures, award totals, and vote counts are drawn from the Jan. 31, 2025 council transcript and the communications packet presented at the meeting.)