A follow-up review of the County of Hawaiʻi’s Affordable Housing Credit program recognizes significant progress made by the Office of Housing and Community Development (OHCD) to strengthen accountability, transparency and oversight.  

Conducted by the County Auditor, the report confirms that six of seven recommendations from a 2023 performance audit have been fully implemented, with one remaining in progress.

The original performance audit, issued in February 2023, evaluated the administration, oversight, and internal controls related to OHCD’s Affordable Housing Credit program and identified opportunities for improvement.

The follow-up review assesses the OHCD’s reforms and implementation efforts over the past three years. According to the report, OHCD has completed substantial operational reforms and accountability measures designed to strengthen safeguards, improve oversight, and build long-term program integrity.

These actions include:

• Formalizing written policies and procedures for administering Chapter 11 affordable housing requirements;
• Increasing monitoring and compliance oversight of affordable housing agreements and Affordable Housing Credits;
• Implementing technology and data tools to improve management and tracking of affordable housing projects and credits;
• Strengthening segregation of duties and internal review processes;
• Providing ongoing staff training related to affordable housing administration and internal controls; and
• Expanding transparency and reporting measures, including quarterly reporting requirements and enhanced documentation standards.

One recommendation remains in progress and involves updates to Chapter 11 of the Hawaiʻi County Code to support the future adoption of administrative rules governing the County’s Affordable Housing programs. While that legislative process continues, OHCD has implemented standardized procedures, strengthened internal controls, and formalized policies to support consistent program administration. Formal adoption of administrative rules will follow completion of the Chapter 11 revisions by the County Council.

“The follow-up report reflects the dedication of our OHCD staff to strengthen oversight and to deliver affordable housing to our community with integrity,” said Mayor Kimo Alameda.

County Housing Administrator Kehaulani Costa commented: “We appreciate the Office of the County Auditor’s partnership in identifying areas for improvement and recognizing reforms that have strengthened the program’s oversight, transparency, and administration.”

The report also highlights the development of OHCD’s Affordable Housing Dashboard, an interactive mapping and data tool that tracks affordable housing projects throughout Hawaiʻi Island. The dashboard centralizes information related to project status, unit counts, affordability levels, and housing inventory, with additional functionality under development for tracking Affordable Housing Credits. Access the dashboard here: https://tinyurl.com/OHCDDashboard.

“Working in close collaboration with OHCD staff, the Office of the County Auditor, Corporation Counsel, and other County partners, we have implemented stronger internal controls, formalized procedures, improved tracking and reporting systems, and enhanced oversight practices,” said Anne Bailey, who oversees the OHCD’s Community Development Division that is responsible for administering Chapter 11. “These improvements reflect a sustained effort to strengthen safeguards and build long-term program integrity, positioning the program for more consistent, transparent, and effective delivery of affordable housing moving forward.”

In addition, OHCD has implemented updated procedures requiring certification, authentication and verification processes prior to the award, transfer, or redemption of Affordable Housing Credits. Additional safeguards now include expanded supervisory review, standardized templates and checklists, ongoing compliance monitoring, and quarterly reporting to County Council.

The follow-up report is available through the Office of the County Auditor at: https://tinyurl.com/OHCDFollowUp.