RESOLUTION

WHEREAS, the United States Department of Housing and Urban Development provides federal grants to state public housing agencies as part of the Capital Fund Program authorized by Title I of the United States Housing Authority Act of 1937, as amended, 42 U.S.C. 1437 et seq.; and

WHEREAS, these federal grants are awarded to state public housing agencies for the development, financing, and modernization of public housing projects, vacancy reduction, and management improvements; and

WHEREAS, HRS §201G-15 charges the Housing and Community Development Corporation of Hawaii (HCDCH) with the responsibility of managing and investing such funds to implement federal housing programs; and

WHEREAS, a recent report noted that 760 units remain vacant in federally funded public housing complexes in Hawaii; now, therefore,

BE IT RESOLVED by the Senate of the Twenty-third Legislature of the State of Hawaii, Regular Session of 2006, the House of Representatives concurring, that the Auditor is requested to perform a financial and management audit of the HCDCH's administration of funds received from the federal government pursuant to the Capital Fund Program; and

BE IT FURTHER RESOLVED that the Auditor is requested to include in its financial and management audit:

(1) An evaluation whether HCDCH spends the funds available to it in an efficient and cost-effective manner to reduce the vacancy rate in federally funded public housing projects in a timely manner; and

(2) An assessment and accounting of any actual or potential shortfall in the Capital Fund Program due to cost overruns in the Kalihi Valley Housing Phase 2 renovation project; and

BE IT FURTHER RESOLVED that the Auditor is requested to submit a report of its findings to the Legislature not later than twenty days prior to the convening of the Regular Session of 2007; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Governor, the Auditor, and the Executive Director and the Chairperson of the Board of Directors of the Housing and Community Development Corporation of Hawaii.

Report Title:

Audit Housing and Community Development Corporation