County auditor: 6 of 7 recommendations completed in affordable housing credits follow-up; chapter 11 revisions remain

HILO July 7 County Auditor Claire McAdam told the Communication Reports and Council Oversight Committee that a follow-up audit of the county's affordable housing credits found six of seven prior recommendations completed and one still in progress. The outstanding recommendation is work with the County Council to revise relevant sections of chapter 11 of the Hawaii County affordable housing policy.

"That was to work with Hawaii County Council to revise applicable sections of chapter 11 of the county's affordable housing policy," McAdam said, noting the revision remains in process but that the Office of Housing and Community Development has made "significant progress" and updated internal policies in July 2025.

McAdam told the committee the follow-up review examined the office's policies and procedures, internal monitoring, a sample of engagements and working papers, and evidence of independence and training. Of seven recommendations from the March 2023 audit, the auditor reported the following statuses: administrative rules to administer the policy created; clarified policies and strengthened controls; enhanced monitoring and project oversight; implementation of software and a publicly available dashboard; segregation of duties and dual-review procedures; and ongoing staff training and incorporation of chapter-level instruction into biweekly meetings.

Council members praised the dashboard as a transparency tool and pressed staff about whether the dashboard tracks housing need as well as supply in project pipelines. Council Member Kerkowitz asked whether an additional layer could show where housing is needed; McAdam and councilors said that coordination with housing staff and state data sources would be necessary to create that linkage.

Kerkowitz also noted the Council's ad hoc committees have been drafting code amendments; he offered to share draft ordinances with the auditor's office and the legislative review branch as the ad hoc work continues. The committee closed the file on the follow-up audit after the presentation (voice vote recorded as 9 in favor).