Committee orders performance audit of housing and homelessness RPT funds ahead of 2027 sunset

The Hawaii County Council €™s Governmental Operations and External Affairs Committee voted Jan. 22 to request a county performance audit of how real property tax (RPT) revenues allocated for housing and homelessness have been spent and whether the program is achieving its goals.

Resolution 44526 directs the County Auditor to evaluate program performance, review the Office of Housing €™s strategic roadmap and metrics, and examine compliance with county code. The motion was introduced by Council Member Heather Kimball and seconded; the committee voted to forward the resolution to the full council with a favorable recommendation.

"This particular program will sunset in 2027," Kimball said, arguing the timing makes a thorough audit urgent so the council can decide whether to continue the program and how to allocate future funding. She told colleagues the auditor is best placed to conduct a robust, impartial review and suggested members review the resolution €™s "be it resolved" clause for any additional items to include.

County Auditor (name not specified in the record) told the committee the auditor €™s office had read the resolution and reached out to the Office of Housing; staff will prioritize the audit but could not provide a definitive completion date until the auditor €™s office scopes the work and coordinates staffing with OHCD. "We understand that it is a priority," the auditor said, "but I can't at this moment give you a timeline as to when we would finish."

Kiko Mercado, assistant housing administrator for the Office of Housing, said the office is in full support of the audit. Mercado also told the committee that the office is currently conducting round three of awards and initiating round four; staff will need adequate notice and coordination with the auditor so program operations are not disrupted.

Council members pressed the auditor on scope. A member asked whether recipient budgets and how monies were spent would be included; the auditor said those items would form part of the review. Other members asked how the audit would interact with a prior SAS report of recommendations; sponsors and housing staff said the auditor should incorporate prior reports when analyzing program adjustments and alignment with the strategic roadmap.

The committee recorded eight votes in favor, with Council Member Connie Lee Kleinfelder absent. The resolution will be forwarded to the full council; the auditor and OHCD were asked to confer and return to the committee with a proposed timeline so the council can receive report findings before the next funding decisions if feasible.

Next steps: The County Auditor will work with the Office of Housing on scope and timing and will report back to the council; the full council will receive the resolution and may provide additional direction or follow-up requirements.