Hawaiʻi County is launching a review of more than $33 million in homelessness grants after questions were raised about fairness, equity and whether the funding is reducing visible street homelessness.
The County Council’s Governmental Operations and External Affairs Committee unanimously advanced a resolution last week requesting a performance audit of the Office of Housing and Community Development’s Homelessness and Housing Fund. The resolution, which targets the five-year program created in 2022, now moves to the full council for consideration.
Council Chair Holeka Inaba told Aloha State Daily the audit, expected this fall, will examine how grants are awarded, whether funds are spent according to approved budgets and whether programs are achieving their intended goals. He said the review will also address concerns that some nonprofits received multiple awards with overlapping costs, including insurance and utilities, which may function as general overhead despite the county’s 10% administrative cap.
Housing Administrator Kehaulani Costa told ASD the Office of Housing and Community Development supports the audit and plans to work closely with the County Auditor’s Office throughout the process.
“We view this as an opportunity to better understand the scope of the county’s homelessness-related investments and to ensure transparency, accountability and continuous improvement,” she told ASD.
Inaba said the council wants to better understand whether the funding is making a visible difference in the community.
“For community and for us on the council, it’s what you’re seeing when you’re out there on the streets. Your numbers can say whatever it wants, it can say we have 200 more homeless in town or 200 less, but what are we seeing on the streets?” Inaba told ASD.
Inaba also raised concerns about the current grant process, saying organizations can, in some cases, receive funding simply by proposing to help people experiencing homelessness, even if the services do not fully align with community needs.
The council is exploring a new approach that would set specific service requirements, such as operating a 24/7, year-round shelter with a set number of beds and a resource center, and direct funding to organizations that meet those requirements.
Inaba said the audit will help ensure public funds are used equitably and effectively and could influence whether the county continues funding programs beyond the current 2027 deadline.
“I don’t anticipate us seeing a bill that would stop it anytime sooner because there’s already a hard stop,” he told ASD.
Even if the audit shows progress and the program is extended past 2027, Inaba said a deadline should remain in place so future councils continue to closely monitor the funding.
Councilwoman Jenn Kagiwada told ASD the review will help determine the most effective way to address homelessness at the county level. Kagiwada is the council’s only member with a social services background.
Councilman Dennis Onishi told ASD he has concerns about the program’s structure and reporting, saying the council currently has limited information about nonprofit performance and whether funding is effectively supporting families experiencing homelessness.
Onishi said the legislation authorizing the fund does not clearly define how grants should be awarded or evaluated.
“I feel the council should suspend the funding and reconstruct the legislation to fit the purpose of what the council would like to see happen,” Onishi told ASD.
He added that some funding could also be redirected to support first responders and security, as suggested during the original vote.
Lawmakers also raised concerns about visible homelessness in parks, vandalism and safety risks for children. Inaba said enforcement by the Department of Parks and Recreation, with support from police, is critical to addressing those issues.
The most recent funding round, approved in December, awarded $6 million to 12 projects, with an additional $5.1 million supporting urgent initiatives such as safe overnight sleeping programs, emergency shelters and permanent housing with supportive services. Twenty-three applications requested more than $18 million, far exceeding available funds.
Since 2022, the Homelessness and Housing Fund has awarded more than $33.5 million to nonprofits across Hawaiʻi Island. Top recipients include Hope Services Hawaiʻi Inc., which received nearly $10 million for long-term housing and support programs across the island; Bridge House Inc., which received $430,000 for recovery and family housing in Kona; the Big Island Substance Abuse Council, which received roughly $800,000 for detox, stabilization and family programs; and Neighborhood Place of Puna, which received $400,000 for youth and family street outreach.
Programs funded include street outreach, transitional living, permanent supportive housing and behavioral health services.
The Homelessness and Housing Fund, authorized through 2027, receives at least $9 million annually from residential property tax revenues. The audit is expected to provide lawmakers and the public with a clearer picture of whether the county’s homelessness funding is being spent effectively and producing visible results.
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