8 to quit state All but one member of a state housing agency's board will resign by the end of the year after the federal government charged that the agency mismanaged federal funds and called for the board's removal.
housing board
The U.S. government claimed
the board had mismanaged fundsBy Rick Daysog
rdaysog@starbulletin.comIn a three-page letter to U.S. Department of Housing and Urban Development official Michael Liu yesterday, eight of the nine-member board of the Housing and Community Development Corp. of Hawaii said they will step down by Dec. 31.
Director Aipopo Aipopo Jr., president of the Kalihi Valley Homes Resident Association, will continue in his post to represent interests of public housing residents, the board said.
Board members defended the housing agency's record, saying the department financed more than 5,000 affordable rental units totaling $595 million during the past eight years. The amount is more than that developed by all previous state administrations combined.
"It is unfortunate that your allegations have created the perception of wrongdoing by the board when, in fact, this is totally false," the board wrote. "We take strong exception to the ... statement that the board of directors is not fulfilling its primary responsibilities of overseeing official actions of the HCDCH. We feel that the inferences and statements were made and conclusions reached without documented justification and were based on anecdotal allegations."
HUD, which provides millions of dollars in federal grants to the HCDCH every year, called for the board to step down by yesterday. It also ordered the agency to reimburse HUD nearly $800,000 for a nonbid contract that agency Executive Director Sharyn Miyashiro awarded to Punaluu Builders, a company headed by her ex-husband Dennis Mitsunaga.
Mitsunaga is a longtime political supporter of Gov. Ben Cayetano, and his relative Wesley Segawa is chairman of the HCDCH's board. Mitsunaga's companies are under investigation by the state Campaign Spending Commission for fund-raising for various local Democrats, including Cayetano.
According to the HCDCH, the Punaluu Builders contract has been reviewed by Attorney General Earl Anzai, who found no evidence of criminal wrongdoing.
Cayetano has accused Liu, a former Hawaii Republican legislator, of playing politics with the state's affordable-housing needs.
Liu's Nov. 1 letter demanding the board's resignation came four days before this year's close election between Republican Gov.-elect Linda Lingle and Democrat Lt. Gov. Mazie Hirono, he said.
"Liu's actions bear a similarity to the kind of political power plays that have been employed across our nation of late," Cayetano said. "These commissioners served the state with integrity and with great success, and it's really hard for me to see them fall victim to politics."
Liu could not be reached for immediate comment.
Of the eight who are stepping down, three were appointed by the Cayetano administration and their terms would have ended Dec. 2, when his administration ends. They are Seiji Naya, director of the Department of Business, Economic Development and Tourism; Ronald Lim, Cayetano's special assistant for housing; and Department of Human Services Director Susan Chandler.
Outside board members -- who include engineer Segawa, architect Kurt Mitchell, planner Leslie Kurasaki, developer Don Fujimoto and Kauai consultant Steven Nishimura -- will resign by Dec. 31. The outside directors serve four-year terms.
State of Hawaii
