Posted on: Thursday, December 12, 2002
Senate committee calls meeting on beleaguered housing agency
By Curtis Lum
Advertiser Staff Writer
The Senate Committee on Commerce, Consumer Protection and Housing will hold a special informational meeting Dec. 16 into alleged mismanagement within the Housing and Community Development Corp. of Hawai'i
The meeting will begin at 9 a.m. in the State Capitol's Conference Room 016. The committee is headed by Sen. Ron Menor, D-17th (Mililani, Waipi'o).
The committee will hear information on the U.S. Department of Housing and Urban Development's allegations of mismanagement within HCDCH.
A HUD report last month accused the state's public housing agency of jeopardizing federal money because of "inconsistent and ineffective management practices." After the federal department conducted an 11-day review of the state agency, HUD's Assistant Secretary Michael Liu called for the HCDCH's board members and top administrators to resign or be replaced. All board members except one told HUD they would resign by the year's end.
Menor said he is holding the briefing to give the departing board members an opportunity to respond to HUD's claims of mismanagement.
In addition to allegations of mismanagement, the committee will discuss HUD's criticisms of the awarding of a sole-source, non-bid contract to Punalu'u Builders by former HCDCH Executive Director Sharyn Miyashiro. Punalu'u Builders is partly owned by Miyashiro's ex-husband, Dennis Mitsunaga.
Menor said he also wants assurances that the state will not lose nearly $25 million in federal housing money. HUD has threatened to take back the money if HCDCH doesn't reimburse it for $771,000 that went for a contract that the former executive director awarded without competitive bids.
"If many of the claims of mismanagement by HUD are valid, then I would be interested in finding out from the board what corrective actions they're proposing to ensure that the state housing program is properly managed in the future," Menor said.
He added that he may call for a financial and management audit of HCDCH.
Whoever is named to the new board will need to face the same committee for Senate confirmation, Menor said.
"I'm hoping that the information that we generate from Monday's hearing will provide us with the kinds of information that my committee members will need to carefully evaluate the new governor's appointees," Menor said.
Also, committee members will discuss a "corrective action order" issued by HUD and the status of a work plan developed by HCDCH in response to the order. The status of HUD payments to the state agency also is on the agenda.
HCDCH oversees more than 10,000 state and federally subsidized housing units and has assets of $1.5 billion. The agency employs more than 400 people.
For information on the meeting, call the committee clerk at 586-6740.
