Report Title:

Audit; HCDCH

Description:

Requires the auditor to do a financial, program, and management audit of the housing and community development corporation of Hawaii.

THE SENATE

S.B. NO.

1846

TWENTY-THIRD LEGISLATURE, 2005

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO THE HOUSING AND cOMMUNITY DEVELOPMENT CORPORATION OF HAWAII.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that the United States Department of Housing and Urban Development has formally declared the housing and community development corporation of Hawaii to be a "troubled" agency. The designation requires extensive and expensive overhauls of the agency's management structure by September 1, 2005. If the improvements are not met, the agency could face a loss of millions of dollars annually in federal housing subsidies or even a federal takeover.

The legislature further finds that the designation follows the agency's failure to manage a recent short-term, sole-source contract in compliance with the federal government's previously imposed corrective action order. Specifically, it appears that the agency attempted to extend the original three-month non-bid contract without federal approval as required under the corrective action order and also expected federal reimbursement for the significantly increased contract award amount.

The purpose of this Act is to require the office of the auditor to perform a financial, program, and management audit of the housing and community development corporation of Hawaii in order to assist the corporation in overcoming its management deficiencies as cited by the United States Department of Housing and Urban Development.

SECTION 2. The auditor shall perform a financial, program, and management audit of the housing and community development corporation of Hawaii. In conducting the audit, the auditor may contract with an independent consultant in accordance with chapter 103D, Hawaii Revised Statutes, as may be necessary to assist the auditor in conducting the audit.

The auditor shall report findings and recommendations, including any proposed legislation, to the legislature and the governor no later than twenty days prior to the convening of the regular session of 2006.

SECTION 3. There is appropriated out of the dwelling unit revolving fund the sum of $          , or so much thereof as may be necessary for fiscal year 2005-2006, for the housing and community development corporation to reimburse the auditor for the costs of conducting the audit required by this Act, including the auditor's contracting with an independent consultant pursuant to chapter 103D, Hawaii Revised Statutes, as may be necessary to assist the auditor in conducting the audit.

SECTION 4. The sum appropriated shall be expended by the housing and community development corporation for the purposes of this Act.

SECTION 5. This Act shall take effect on July 1, 2005.

INTRODUCED BY:

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