U.S. Department of Housing and Urban Development * Honolulu Field Office Regon IX — UN I 500 Ala Moana Boulevard, Suite 3A Honolulu, Hawaii 96813 http://www.hud.gov http:llwww.espanol.hud.gov October II. 2(11 1The Honorable Peter B. CarlisleMa orCit’ and Counts’ of I lonolulu530 South King StreetHonolulu, HI 968 1 31)ear Mayor Carlisle:SUBJECT: On-Site Program Monitoring April 11-25,2011 Community Development Block Grant The U.S. Department of Housing and Urban Development (HUE)) has reviewed yourletters of September23 and 30. 2011 which responded to our monitoring report. HUD notes andappreciates that the City and County of Honolulu (City) and its subrecipients are makingprogress in addressing the CDBG findings and concerns. The status of the findings and concernsare as follows:CPD Finding M11-012 (ACT)— OR! Anuenue Hale Aloha Gardens Is Not Complying withCDBG Eligible Use and National Objective This finding remains open. corrective Actions 1-1 and 1-2. The City needs to continue to resolve this issue byOctober 31, 2011. 1-2. The City needs to submit to HUI) a detailed plan that includes specific steps the City and ORl will take and timeline/target completion date to increase the utilization of the Wellness Center by at least 50 eligible elderly and adults sith deelopment disabilities durine all normal hours of operation The detailed plan needs to include. hut not he limited to. identif’ing and requiring OR! to identify and execute agreurncnt ith other n )nprol t orali1/atinns that ers e the elderl and adults ith sc crc dl thiiitiu to pr tdc eI icu J[ [Flu k Cil!1u (Cfltei . The Cit needs report the amount ot fees that ORE i charging for [he usc of the ORI Anuenue Hale Aloha Gardens. both the Weilness Center and Camp Pineapple 808. The City needs to describe the policies and procedures in place to ensure that the fees do not preclude Io and moderate income persons for using the facilities. 4-5. The City needs to identif the specific steps the City and ORI ill take to increase the utilization of Camp Pineapple 808 by the elderly and adults with development disabilities to meet a CDBG national objective.
6-7. This corrective action was satisfactorily addressed in the City’s response. HUD accepts ORFs proposed eligibility verification record form submitted with the City’s September 23. 2011 letter. Corrective Actio,i 1-3. The City needs to continue to resolve this issue byOctober 3 1. 2011 The City and County ot Honolulu (City) needs to continue to suspend CDBG .funding for the Opportunities and Resources. Inc. (ORl. Day Care for Elderly and Adults withDisabilities public service project until the City and OR! clearly define the specific tasks to beperformed and the specific increase of the public service activity. Corrective Action 1-4. This corrective action was satisfactorily addressed in the City’sresponse. 1-IUD accepts the City’s documentation that the wire transfer transaction has beencompleted and $66,681.47 in ineligible expenses for the ORI Day Care for Elderly and Adultswith Disabilities public service project has been returned to the CD13G account. Corrective Action 1-5. The City needs to continue to resolve this issue and submit thereports of quarterly on-site monitoring visits of the OR! Anuenue Hale Aloha Gardens to KU[)within 30 days of the end of each quarter beginning with the quarter ending September 30. 2011for the remaining years of the CDBG real property use period. corrective Action 2. This corrective action was satisfactorily addressed in the City’sresponse. KU[) accepts the City’s post development monitoring plan.CPI) Finding Ml 1-013 (INC) — Tracking Program Income Generated by Subrecipients This finding remains open. corrective Action 1. This corrective action was satisfactorily addressed in the City’sresponse. HUD accepts the City’s post development monitoring plan including a system fortracking and verifying CDBG program income generated by subrecipients or other entities towhich CDBG funds are passed through. Corrective Action 2. The City missed the September 30, 2011 deadline to complete thiscorrective action. The City needs to continue to resolve this issue and to review ORI financialrecords and records on agreements with outside organizations for the use of the Wellness Centeran Came P n nL OS I he C’ netd r ‘ HI TD J mn k CDBG er iiincome from the usc or rental of the Wellnes Center and Camp Pineapple has been remittedfrom OR1 to the City CDBG program income account by October 3 1. 20 1.CPD Finding Ml 1-014 (PRC) Conflict of Interest This finding is closed. The corrective actions were satisfactorily addressed in the City’sresponse. HUI) accepts the City’s changes made to its conflict of interest policies andprocedures and the City’s conflict of interest employee annual certification and disclosure form.
CPD Concern NI 11-015 (ACT — Pablo Chinese Home’s Documentation of National ObjectiveCompliance This concern remains open. The City missed the September 30. 2011 deadline to resolvethis concern. HUD notes that the Cit has conducted on—site monitorinLi visits to Pablo ChineseHome and Hospice Hawaii and that Pablo Chinese Home and Hospice Hawaii have agreed toand/or made changes to their admissions processes to require copies of participant identificationthat sufficiently documents elderly status. The City needs to submit documentation of thechanges made to the Pablo Chinese Home’s and Hospice Hawaii’s admissions process byOctober 31,2011. In an effort to ensure a timely resolution of the open findings and concerns and reach afinal solution acceptable to HUD by October 31. 2011, the City must report to HUD on itsprogress every 15 days until the remaining findings and concern are resolved, Should you haveany questions, please call. Rebecca Borja. Senior Community Planning and DevelopmentRepresentative, at 808-522-8180, extension 265. Sincerely. Mark A. Chandler. Director Office of Community Planning and Developmentcc:Mr. Michael R. HansenDirectorDepartment of Budget and Fiscal ServicesCity and County of Honolulu530 South King Street. Room #208Honolulu, HI 968 13Mr. Samuel E.H. MokuDirectorDepartment of Communit ServicesCity and Count of 1—lonolulu715 South Kine Street. Suite 311Honolulu, HI 96813Ms. Holly KawanoFederal Grants CoordinatorDepartment of Budget and Fiscal ServicesCity and County of Honolulu530 South King Street. Room #208Honolulu, Hf 968 I 3
4Internal H1J[) Distribution:lilt(‘hron — Green CP1)c’hron -- Blue FP1(handlerIdentification Lines: J:MonitoringFY 201 1201 1 City CDBCCityjOl LMonitoring Closeout Ltr 2.DocxControl No, In: 2011.0815, 2012.0002 Control No. Out: Control NumberFile: City aid County of Honolulu, FY 2011, On-Site Monitoring CDBG 2012.0011Suspense: NoneCorrespondence Originator Concurrence Concurrence Concurrence Concurrence ConcurrenceCode 9CDName BORJADate 10/I 1/2(111 Official Record Cops U.S. Department of Housing and Urban Development lurm HL]D-713.1 t(12/03 Previous edition is obsolete.