OFFICE OF THE MAYOR
CITY AND COUNTY OF HONOLULU
530 SOUTH KING STREET, ROOM 300 • HONOLULU, HAWAII 96813
PHONE: (8Q8) 768-...
Mr. Mark A. Chandler
February 7, 2014
Page 2
through 4, and $26,000 to resolve Finding No. 5, is reasonable. We believe it...
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Ori letter

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Ori letter

  1. 1. OFFICE OF THE MAYOR CITY AND COUNTY OF HONOLULU 530 SOUTH KING STREET, ROOM 300 • HONOLULU, HAWAII 96813 PHONE: (8Q8) 768-4141 • FAX: (808) 768-4242 • INTERNET: www.honolulu.qov EMBER LEE SHINN MANAGING DIRECTOR KIRK CALDWELL MAYOR GEORGETTE T. DEEMER DEPUTY MANAGING DIRECTOR February 7, 2014 VIA HAND DELIVERY AND EMAIL Mr. Mark A. Chandler, Director U. S. Department of Housing and Urban Development Honolulu Field Office Region IX 1132 Bishop Street, Suite 1400 Honolulu, Hawaii 96813-4918 — Dear Mr. Chandler: SUBJECT: On-Site Program Monitoring Community Development Block Grant (CDBG) Program April 1 1-25, 201 1 and May 2013 and September 27, 2013 Follow-ups The purpose of this letter is to provide you with an update on the efforts made by the City and County of Honolulu (the “City”) to resolve open monitoring findings and concerns relating to the City’s Community Development Block Grant (“CDBG”) program as it pertains to ORI Anuenue Hale, Inc. (“ORIAH”) and ORIAH’s Aloha Gardens Project. First, the City would like once again to express its appreciation of your willingness, on behalf of HUD, to consider our earlier responses and proposals and to put together a counterproposal. We also appreciate the patience you have shown while we have attempted to negotiate a resolution with ORIAH. We understand and respect HUD’s position that the resolution of the open monitoring findings and concerns is technically a matter between HUD and the City but, as previously noted, from the City’s perspective and as a matter of good public and fiscal policy, this matter cannot be settled without the participation of ORIAH. The City continues to strongly believe that a resolution along the lines you proposed would be most beneficial to ORIAH, the City, HUD and the taxpayers and citizens of Honolulu, As stated in the City’s letter of October 18, 2013, the City believes that the counterproposal in your letter dated September 27, 2013, to the effect that the City would commit to repay HUD the amounts of $2,883,426 to resolve Findings No. I
  2. 2. Mr. Mark A. Chandler February 7, 2014 Page 2 through 4, and $26,000 to resolve Finding No. 5, is reasonable. We believe it provides the best opportunity to achieve CDBG program compliance at ORIAH’s Wellness Center, while allowing the City and ORIAH time to develop a separate, workable solution for Camp Pineapple. Unfortunately, despite HUD’s efforts and significant efforts by the City since last Fall to reach an acceptable resolution with ORIAH, ORIAH has refused to respond to HUD’s and the City’s proposal or to provide any reasonable alternative. Without ORIAH’s agreement to contribute to the payment that the City would be required to pay to HUD, and without ORIAH’s agreement to subdivide its property to effect the resolution, the City cannotcommitto pay HUD. Further, the Citywould be unable to implement HUD’s counterproposal because absent subdivision of the property, the entire property would remain subject to monitoring, and not just the Wellness Center. The City regrets that the next step in HUD’s process may be referral of this matter for enforcement. Again, thank you for your considerable time and effort. Very truly yours, Ember Lee Shinn Managing Director cc: Nelson H. Koyanagi, Jr., Director, Department of Budget and Fiscal Services Pamela A. Witty-Oakland, Director, Department of Community Services Donna Y. L. Leong, Corporation Counsel, Department of the Corporation Counsel

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