A “boiled down” request for an audit of county affordable housing credits got the nod Tuesday from the County Council Finance Committee after concerns were raised earlier this month about possibly impeding a federal criminal investigation.
The committee voted unanimously to forward resolution 467 to the council with a positive recommendation after sponsor North Kona Councilman Holeka Inaba worked with County Auditor Tyler Benner to scale down the scope of the request.
“We’ve boiled it down away from ‘adequate fundamental and strategic plans,’” Inaba said, reading from the original measure, “just to making sure that our issuing and utilization of our affordable housing credits is being carried out properly … (to) make sure these credits that are outstanding are legitimate and we have the proper resources and plans to assure accounting of these credits.”
The county’s use of the credits has recently come under greater scrutiny, following a guilty plea to accepting almost $2 million in bribes from former community development specialist Alan Scott Rudo in the county Department of Housing and Community Development and the federal indictment of attorneys Paul Joseph Sulla, Jr. and Gary Charles Zamber, charged with six counts of honest services wire fraud and one count of conspiracy. Sulla is also charged with one count of money laundering. Rajesh P. Budhabhatti, a Big Island businessman, was charged in separate complaints with conspiracy to commit honest services wire fraud.
The resolution now calls for the auditor “to conduct a performance audit of the Office of Housing and Community Development to ensure the efficient issuance and utilization of affordable housing credits, comprehensive accounting of credits, tests of the current control environment, and related criteria as determined necessary by the Auditor.”
Benner was onboard with the changes.
“I’m more comfortable with the resolution that we’re looking at today,” he said.
Housing Administrator Susan Kunz also seemed satisfied.
“I’m very comfortable with the amendments that have been made. I touched bases with the county auditor and I’m really looking forward to the opportunity to work with them,” Kunz said. “I do want you to know that through this process the Office of Housing has already begun work — obviously, right? — to fortify and to re-look at the internal policies of how we administer Chapter 11.”
Developers who agree to construct new affordable housing units in excess of any requirements imposed under county law may earn affordable housing credits. The credits can be transferred to other developers, who can use them to satisfy existing or future affordable housing requirements.
