State audit faults $13.7M in kauhale homeless spending
A Hawaii state audit found more than $13.7 million in payments for Gov. Josh Green's kauhale homeless initiative were unauthorized, unsupported, or questionable. State Auditor Les Kondo's report said the Statewide Office on Homelessness and Housing Solutions and nonprofit builder HomeAid Hawaii were unprepared for the rapid construction pace. After the audit, Green said the overseeing office accepted all 11 recommendations.
The audit by Hawaii State Auditor Les Kondo examined more than $13.7 million in payments tied to Gov. Josh Green’s kauhale tiny-home program. It found the Statewide Office on Homelessness and Housing Solutions and nonprofit builder HomeAid Hawaii were not ready for the construction speed. Flagged costs included first-class mainland and international travel, office and administrative expenses, and subcontractor or consultant work not directly tied to kauhale.
Green said the overseeing office endorsed all 11 recommendations, while challenging the label applied to most of $6.1 million. State Homeless Coordinator Jun Yang said recovery efforts for improper expenses were underway. The program reports nearly 900 beds and services for more than 2,900 formerly homeless residents.
The audit may intensify scrutiny of how Hawaii funds homeless housing, affecting state agencies, nonprofits, contractors, and residents relying on kauhale. If recovery and compliance improve, future projects could face tighter documentation and spending controls. That may slow some construction but could strengthen public trust. People seeking shelter may see continuity or delays depending on how officials balance oversight with expansion.