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Council postpones $10.5M homeless-services awards after testimony alleging favoritism
Summary
The council postponed a package of 15 grant awards totaling $10.5 million to nine nonprofits after public testimony included an allegation that a grant recipient used another group's 43-page plan; the Office of Housing will finalize budgets and work with finance and counsel before the council takes a vote on Jan. 31.
The Hawaii County Council postponed action on Resolution 46-25, a proposed $10.5 million package of grant awards to nonprofits that run homeless and housing programs, after extended public testimony and a specific allegation of misconduct in grant selection.
Carice Higginson, founder of Humanity Hale, testified that during a private meeting she was asked to hand over a detailed 43-page transitional housing plan and later learned that another nonprofit received nearly $400,000 for a program she says used her material. "He took my entire plan to implement as his own," Higginson said in testimony before the council, adding that she had evidence and that she intended to pursue legal action.
Several nonprofit leaders testified in support of the award package, describing program outcomes, bed counts, services and the importance of sustaining outreach and case-management capacity. Speakers included Kevin Hedlund (Going Home Hawaii), Danielle White (Project Vision Hawaii), Paul Norman (Neighborhood Place of Puna), Hannah Preston Pita (BISAC) and others who described measures of success such as housing placements, outreach events, shelter bed counts and staffing capacity.
Office of Housing and Community Development staff told the council that the awards in their current form are proposed budgets; after an award is authorized the office typically finalizes contracts and program budgets in negotiations with providers. Administrator Costa and assistant administrator Mercado told the council that the proposed awards could be adjusted downward during final budget negotiations to align expenditures with allowed program costs and public-purpose rules, but that awards would not be increased. Staff warned the council that several existing contracts for homelessness services end on Jan. 31 and that postponement could create service continuity risks if contracts are not reauthorized promptly.
Because of the seriousness of the allegation and to allow finance, corporation counsel and OHCD to verify proposed line-item expenses and to check whether any conflicts or procurement irregularities exist, the council voted to postpone Resolution 46-25 to the special meeting on Jan. 31. Councilmembers said they wanted the additional time to obtain clarifying documentation so the council could avoid approving awards that might later be subject to legal or procedural challenge.
What was proposed: Resolution 46-25 would have authorized 15 grant awards to nine nonprofit organizations for homelessness and housing programs, funded from residential tier-2 property tax revenues, totaling $10,500,000. OHCD materials list program-level proposed budgets (communications provided to council) that OHCD staff and finance will re-check during the interim.
Next steps: OHCD will finalize contracts and budgets in negotiation with recommended providers and submit requested clarifications to the council and corporation counsel before the Jan. 31 special meeting; the council has warned it will review any evidence of wrongdoing and may refer matters to the Board of Ethics or other authorities if appropriate.
Sources: public testimony and OHCD staff statements during Jan. 22 Hawaii County Council meeting.
