RESOLUTION

WHEREAS, the United States Department of Housing and Urban Development (HUD) provides federal grants to state public housing agencies as part of the capital fund program authorized by the United States Housing Authority Act of 1937, as amended, 42 U.S.C. section 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, sections 201G-15 and 201G-15.5, and part II, chapter 201G, Hawaii Revised Statutes, charge the Housing and Community Development Corporation of Hawaii with the responsibility:

WHEREAS, effective July 1, 2006, the Housing and Community Development Corporation of Hawaii will become the Hawaii Public Housing Administration pursuant to Act 196, Session Laws of Hawaii 2005; and

WHEREAS, an audit of the Housing and Community Development Corporation of Hawaii by the State Auditor, Report No. 01-14, September 2001, found deficiencies in the financial and operational management practices; and

WHEREAS, a Honolulu Star Bulletin article of December 12, 2005, stated that funding and maintenance issues hinder state housing, specifically noting that there are some seven hundred sixty empty public units, about half of which need major repairs; and

WHEREAS, a Honolulu Advertiser article of September 26, 2004, reported that the United States Department of Housing and Urban Development designated the Housing and Community Development Corporation of Hawaii as "troubled" and threatened to begin withholding federal funds or even take direct control if things did not improve substantially by September 1, 2005; and

WHEREAS, the maintenance services section of the Housing and Community Development Corporation of Hawaii has the responsibility for repair and maintenance of public housing projects; and

WHEREAS, the maintenance services section is reported to have a high number of vacant positions that are unfilled; and

WHEREAS, the maintenance services section is reported to have experienced a high number of workers' compensation claims and to have paid a large amount of benefits as a result; and

WHEREAS, a management audit of the maintenance service section of the Housing and Community Development Corporation of Hawaii is warranted to confirm and assess the nature and extent of the operational and internal problems of the maintenance service section; 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 commencing after January 31, 2007, the Auditor is requested to perform a management audit of the maintenance service section of the Housing and Community Development Corporation of Hawaii (to be known as the Hawaii Public Housing Administration on July 1, 2006); and

BE IT FURTHER RESOLVED that the Auditor is requested to submit a report of its findings and recommendations to the Legislature not later than twenty days prior to the convening of the Regular Session of 2008; and

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

Report Title:

Audit HCDCH; Maintenance Service Section