Follow-Up Report: Office of Housing and Community Development Affordable Housing Credits | Hawaii County, HI

from Hawaii County Auditor, June 1, 2026

Why This Review Matters

Implementing these recommendations strengthens the County’s ability to effectively administer its Affordable Housing Policy while maintaining a feasible environment for development.  Aligning Hawaiʻi County Code Chapter 111 requirements with current market conditions helps ensure affordable housing objectives are achieved without unduly constraining housing production.

The recommendations also improve clarity and consistency in policy implementation, supporting greater compliance and more uniform application.  Strengthened reporting practices and formalized procedures further promote transparency and accountability.

Collectively, these actions support ongoing, data-driven improvements to the County’s Affordable Housing Policy and help ensure it remains effective and responsive to evolving community needs.

Key Takeaways of Audit Recommendations

1. Clarifying applicable sections of Chapter 11 helps make laws easier to understand and helps ensure compliance.
2. Establishing administrative rules helps guide OHCD authority to effectively administer the County’s Affordable Housing Policy.
3. Updating and enforcing policies and procedures helps ensure consistency throughout the organization and with industry best practices.
4. Ongoing monitoring helps ensure OHCD’s internal control system operates effectively and efficiently as designed.
5. Using technology as a monitoring tool helps improve management of affordable housing agreements and credits.
6. Segregating incompatible duties helps ensure one individual does not oversee key steps and/or elements of the affordable housing process.
7. Ongoing training helps ensure employees at all levels of the organization involved in the affordable housing process are knowledgeable and held accountable.

Summary of Audit Recommendations

Definitions

• Completed:  Department has sufficiently implemented the audit recommendation.  We reviewed sufficient and appropriate evidence to support corrective actions.
• In process: Department has made significant progress toward implementing the recommendation.  We reviewed sufficient and appropriate evidence to support corrective actions.

Recommendation  /  Status

1. Clarify County Code  /  In Process

Work with the Hawaiʻi County Council to revise applicable Sections of Hawai‘i County Code Chapter 11.

2. Establish Administrative Rules  /  Completed

Establish administrative rules to effectively administer the County’s Affordable Housing Policy.

3. Update and Enforce Policies and Procedures  / Completed

Clarify and enforce policies and procedures to ensure consistency and adopt industry best practices.

4.  Increase Monitoring and Program Oversight  /  Completed

Perform ongoing monitoring of the internal control system’s design and operating effectiveness as part of operations.

5. Use Software and Technology  /  Completed

Use software and technology as a monitoring tool to improve the management of affordable housing agreements and credits.

6.  Segregate Incompatible Duties /  Completed

Separate incompatible duties. One individual should not oversee key elements of the affordable housing process. Compensating controls should be implemented to reduce the risk if duties cannot be sufficiently segregated.

7. Provide Training  /  Completed

Provide ongoing training to employees involved in affordable housing, including specialized training to support competency.

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HTH: Report outlines improvements to affordable housing credit program - Hawaii Tribune-Herald