The U.S. Department of Housing and Urban Development has demanded that the five-member board of the state Housing and Community Development Corp. of Hawaii resign by Nov. 15. Gov skeptical over demands
for state housing resignations
By Pat Omandam
pomandam@starbulletin.comGov. Ben Cayetano, however, called the demand in yesterday's letter by HUD Assistant Secretary Michael Liu politically motivated. Cayetano stressed yesterday there is no reason for the board to resign because it has done a tremendous job providing public-housing units in Hawaii.
"It's very interesting that Mike Liu, former Republican state representative and Republican candidate for lieutenant governor, should issue something like this four days before the election -- and immediately forward it to the press," Cayetano said.
But Republican Party Chairman Michael Kane said: "His (Cayetano's) political statements are definitely out of line. Clearly, with so many investigations in progress, sooner or later, a judgment is going to have to be made."
HUD released a "review report" of the Housing and Community Development Corp. yesterday that said the agency's managers are incapable of successfully managing and overseeing agency funds, citing a $771,000 sole-source contract awarded by Sharyn Miyashiro, former agency executive director, to her ex-husband's company.
That award raised serious concerns about the objectivity of the procurement, the report said. The report prompted Liu, who has been critical of the agency this year, to ask for the board's resignation and a reimbursement of the $771,000.
Cayetano questioned the timing of the report and Liu's demands. He wonders why Liu is focusing on a single contract of $771,000 out of $150 million in contracts the Housing and Community Development Corp. awarded over the past four years.
"As to the particular contract Mr. Liu refers to, when questions first arose, I asked my attorney general to investigate and urged Mr. Liu to contact the U.S. attorney if he suspected any criminal activity in the issuance of the contract," Cayetano said.
Finally, the governor added, if HUD is not satisfied with the state's performance, the state would be ready to begin negotiations to turn over all of its public-housing units to the federal government.
Housing and Community Development Corp. of Hawaii
Hawaii Housing and Urban Development
