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- calendar_today November 13, 2026
Background: State-Funded Homeless Housing Program Faces Lawmaker Scrutiny
Hawaiʻi lawmakers are raising sharp questions about oversight and spending within the state's kauhale program, a signature initiative of Governor Josh Green designed to address homelessness. During a Senate briefing on Thursday at the Hawaiʻi Capitol, legislators invited state officials and the contractor HomeAid Hawaiʻi to respond to findings from a state audit highlighting potentially unauthorized payments and contract management issues.
Audit Reveals Questionable Payments and Lack of Oversight
The investigation followed reports by Civil Beat on the high costs and lack of documentation in state-funded homeless housing initiatives. A recent scathing audit identified over $13 million in questionable or unauthorized payments through no-bid contracts with HomeAid Hawaiʻi, the program’s sole provider. State Auditor Les Kondo detailed charges billed to taxpayers—including office space, laptops, non-program-related food and drink, an oceanview condo, personal expenses, and public relations services—suggesting the nonprofit was given millions without substantive checks on spending relevance.
HomeAid and State Officials Respond to the Audit
HomeAid CEO Kimo Carvalho countered the audit’s findings, describing them as outdated, incomplete, or misleading. Carvalho insisted that HomeAid could account for $39.9 million in spending across nearly 13,000 receipts, with the program providing housing for 499 people through 330 tiny homes and plans for seven new sites. Carvalho cited independent audits by a local CPA firm which he said found no fraud or misuse.
State officials, including Department of Human Services Director Joe Campos and Statewide Office of Homelessness and Housing Solutions Coordinator Jun Yang, emphasized the progress made by the kauhale program. However, lawmakers pressed them on procurement procedures and questioned their ability to manage construction contracts and assess expenditures accurately.
Forensic Audit Considered as Lawmakers Demand Answers
Senate Health and Human Services Committee Chair Joy San Buenaventura and Vice Chair Sharon Moriwaki raised the possibility of a deeper forensic audit to uncover any further issues beyond what the auditor's report detailed. Lawmakers expressed concern about charges unrelated to homelessness, including purchases for software designed to identify donors, large monthly contracts for media relations, insurance premiums, and other ineligible expenses.
Yang reported that HomeAid had repaid $550,000 to the state, with the total overpayment identified as $1.2 million. HomeAid was able to submit expenses for reimbursement on a rolling basis, differing from more standard fixed-cost or performance-based contracts. This approach, lawmakers noted, meant the state regularly approved questionable expenses without thorough verification.
Governor's Defense and Ongoing Debate
Governor Josh Green voiced support for the program via text to Civil Beat after the hearing, stating that the initiative had decreased homelessness by 13% statewide and saved millions in Medicaid costs. Green implied critics would eventually recognize the benefits, while Auditor Kondo insisted that financial records told a more troubling story.
Contract Selection Under Scrutiny
HomeAid Hawaiʻi was chosen without a competitive bidding process after procurement requirements were suspended by gubernatorial proclamation, raising ongoing questions about transparency and accountability. Lawmakers debated why the state had effectively developed a fledgling nonprofit into a major vendor instead of leveraging existing contractors.
The audit also revealed that HomeAid grew from one employee and $235,000 in revenue in 2022 to 13 employees and $143 million in 2024—90% of the latter coming from state contracts. State officials said that some contract decisions, such as selecting HomeAid after the Lahaina wildfires, were based on pre-existing development agreements rather than open competition.
Next Steps: Legislative Follow-Up and Potential Investigations
The Senate briefing marked the first opportunity for lawmakers to question program leaders and contractor representatives directly. While HomeAid and state administrators asserted that all funds were invested in housing developments, legislators remained unconvinced and committed to pursuing more detailed answers, potentially through a forensic audit.
As contract management and program oversight face heightened scrutiny, the future of the kauhale initiative will depend on restoring confidence in how taxpayer funds are spent to address homelessness.
Source: civilbeat.org.
