HOUSE OF REPRESENTATIVES	H.R. NO.	162
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII

HOUSE RESOLUTION

 

 

ESTABLISHING AN INVESTIGATING COMMITTEE ON THE KAUHALE INITIATIVE, OHANA ZONES, AND RELATED HOUSING PROJECTS established UNDER the GOVERNOR'S EMERGENCY PROCLAMATIONS TO ADDRESS HOMELESSNESS.

 

 

 

     WHEREAS, the Legislature is vested with the responsibilities of determining state policy and appropriating state funds; and

 

     WHEREAS, to promote transparency, accountability, and the functionality of state government, the Legislature must ensure that appropriated funds are used efficiently, effectively, and in accordance with applicable laws and regulations; and

 

     WHEREAS, pursuant to Act 309, Session Laws of Hawaii 2025, the Auditor has been conducting a management and performance audit of the Statewide Office on Homelessness and Housing Solutions' Kauhale Initiative; and

 

     WHEREAS, the audit, which was required to be completed prior to the start of the Regular Session of 2026, is not expected to be completed until the interim between the 2026 and 2027 Regular Sessions, in part because parties responsible for project management and development have not been forthcoming with requested documents, including receipts and line-item accounts; and

 

     WHEREAS, between January 23, 2023, and January 16, 2026, Governor Josh Green, has issued twenty-one successive emergency proclamations relating to homelessness in Hawaii; and

 

     WHEREAS, under section 127A-13(a)(3), Hawaii Revised Statutes, the Governor's emergency proclamations may suspend specific statutes and administrative rules governing procurement, including portions of Title 9, Hawaii Revised Statutes; historic preservation under chapter 6E, Hawaii Revised Statutes; environmental review under chapter 343, Hawaii Revised Statutes; and state and county land use, zoning, and permitting requirements; and

 

     WHEREAS, the Governor's emergency proclamations have allowed for no‑bid awards of contracts to a single contractor, HomeAid Hawaii, which is not, and has not previously been, registered with the Department of Commerce and Consumer Affairs as a licensed contractor in the State; and

 

     WHEREAS, the emergency temporary housing projects on the island of Maui to house homeless wildfire survivors, specifically Ka Lai Ola in Lahaina, Puuhonua O Nene in Kahului, and Kipuola Kauhale in Kahului, were established under the Governor's emergency proclamations to address homelessness; and

 

     WHEREAS, project costs for the temporary housing project Ka Lai Ola have been estimated at $185,000,000; and Act 309, Session Laws of Hawaii 2025, allocates the sum of $18,575,000 out of the general revenues of the State of Hawaii for fiscal year 2025–2026, and $24,325,000 for fiscal year 2026–2027 for the continued operation of the Kauhale Initiative; and $2,525,000 for fiscal year 2025–2026, and $5,855,000 for fiscal year 2026–2027 for the continued implementation of the Ohana Zones pilot project established under Act 209, Session Laws of Hawaii 2018; and

 

     WHEREAS, chapter 21, Hawaii Revised Statutes, outlines procedures for establishing and administering legislative investigating committees, including procedures for conducting hearings in a fair and impartial manner; and

 

     WHEREAS, section 21‑3, Hawaii Revised Statutes, authorizes the establishment of an investigating committee by a house resolution; now, therefore,

 

     BE IT RESOLVED by the House of Representatives of the Thirty-third Legislature of the State of Hawaii, Regular Session of 2026, that an investigating committee is established pursuant to chapter 21, Hawaii Revised Statutes, to be known as the "House Investigating Committee on the Kauhale Initiative and Related Housing Projects"; and

 

     BE IT FURTHER RESOLVED that the House Investigating Committee on the Kauhale Initiative and Related Housing Projects may operate during the interim between the 2026 and 2027 Regular Sessions if the Auditor's report required by Act 309, Session Laws of Hawaii 2025:

 

     (1)  Alleges mismanagement, violations of procurement rules, or unlawful actions; or

 

     (2)  Does not satisfactorily answer questions of performance; and

 

     BE IT FURTHER RESOLVED that the investigating committee shall:

 

     (1)  Investigate the Kauhale Initiative, including all projects currently or previously listed by the Statewide Office on Homelessness and Housing Solutions as part of the Kauhale Initiative, as well as Ka Lai Ola, Puuhonua O Nene, and any other projects developed to provide housing or shelter for people experiencing homelessness or at risk of becoming homeless, including housing developed under emergency proclamations declaring homelessness a public health emergency;

 

     (2)  Follow up on the Auditor's audit, including by reviewing, as necessary, contracts, financial statements, procurement processes, and comparisons of actual costs incurred with budgeted estimates;

 

     (3)  Investigate the licensing status and qualifications of all contractors and subcontractors involved in the projects described in paragraph (1);

 

     (4)  Investigate any health and safety concerns related to these projects, including any incidents, accidents, injuries, or deaths that have occurred at project sites;

 

     (5)  Investigate the roles and responsibilities of key individuals and entities involved in these projects;

 

     (6)  Investigate the allegation that there are no records of complaints filed with the Regulated Industries Complaints Office of the Department of Commerce and Consumer Affairs regarding unlicensed contractors, despite multiple complaints by numerous individuals;

 

     (7)  Investigate the responses, or lack thereof, by authorities and managing entities to concerns raised regarding unlicensed contractors, health hazards, and safety violations;

 

     (8)  Investigate whether the use of emergency proclamations to exempt projects from building codes, licensing requirements, and other regulations was appropriate and whether adequate safeguards were in place to protect public health and safety;

 

     (9)  Investigate whether any laws, regulations, or ethical standards were violated in connection with these projects;

 

    (10)  Determine whether fraud, waste, abuse, mismanagement, corruption, or other wrongdoing occurred in connection with these projects;

 

    (11)  Examine the recommendations made in the Auditor's report;

 

    (12)  Make recommendations for legislative actions, policy changes, administrative reforms, and enforcement actions to prevent similar problems in the future and to improve the operations and management of state agencies, the use of their funds, and related matters; and

 

    (13)  Investigate any other matters related to the subject matter of this measure that the investigating committee deems relevant or necessary; and

 

     BE IT FURTHER RESOLVED that the investigating committee shall have every power conferred on an investigating committee by law, including the authority to:

 

     (1)  Conduct hearings, take testimony under oath, and compel the production of documents, records, and other evidence;