HUD and state The Bush administration would have to approve any new appointees and hires to the state public housing agency board and staff, while a national search would be required for its executive director, under a pending agreement between the federal government and the state.
agree on changes
The agreement is necessary
to preserve grants for housingBy Pat Omandam
pomandam@starbulletin.comThe pact, expected to be signed by year's end, also tasks the state with seeking $771,000 back from Punaluu Builders, a company headed by Dennis Mitsunaga, the ex-husband of former Housing and Community Development Corp. Executive Director Sharon Miyashiro.
U.S. Department of Housing and Urban Development official Michael Liu accused the state agency of mismanagement and violating procurement laws in awarding a nonbid contract to Punaluu Builders.
Liu also demanded the resignations of all nine members of the HCDCH board.
The memorandum of agreement between the state HCDCH and HUD is aimed at restoring fiscal, managerial and operational accountability to the troubled agency, which provides public housing to the state's needy and poor.
"We have no objection to having them approve the board members because we anticipate such outstanding people who we will recommend to them that it won't be an issue anyway," said Gov. Linda Lingle, who released details of the agreement yesterday.
"Also, we're committed toward seeking the $771,000 back from the company they identified that received a contract in an improper way. They are also requiring us to debar or disqualify any company that has done business in a way that they deemed was not proper, and that's something we would have sought to do anyway," she said.
Randy Roth, Lingle's senior policy advisor, has represented the state in the talks with members of Liu's office. Lingle and Liu have not spoken directly on the matter.
Lingle said the state's preference would be to use the $771,000 for public housing rather than returning it to the federal government.
Mitsunaga could not be reached for comment yesterday afternoon. Miyashiro retired on Nov. 30.
Lingle stressed the agreement is needed to ensure the state does not jeopardize the $25 million in annual federal housing grants it receives and to prevent a federal takeover of the agency, which has been done elsewhere.
It is an action both sides want to avoid, she said.
In response to questions from reporters, Lingle said yesterday she does not believe Liu's accusations, which came just days before the Nov. 5 general election, were politically motivated. Liu is a former state legislator and former Republican candidate for Hawaii lieutenant governor.
Instead, she said HUD is acting appropriately because it has a responsibility to ensure the federal money given to the state is spent on the people it is intended for.
"From my view of it, and from the documents I've seen, the discussions we've had, I think they're acting appropriately, responsibly and as they should to protect tax dollars," Lingle said.
The agreement also calls for technical assistance and for training in areas of acceptable procurement practices.
Earlier this week, state Sen. Ron Menor (D, Mililani), chairman of the Senate Commerce, Consumer Protection and Housing Committee, held an informational briefing to hear from state housing officials.
Afterward, he said HUD's allegations had merit, and he plans to introduce a series of bills next session to address issues raised by them.
U.S. Department of Housing and Urban Development
State of Hawaii
