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Hawaii Auditor Warns of Possible Misuse of Kauhale Funds

The auditor says internal controls in the kauhale program create an ongoing risk of waste as his office reviews spending.

  • State Auditor Les Kondo warned the Legislature and the State Office of Homelessness and Housing Solutions of "improper use of public funds" in the kauhale initiative, citing significant deficiencies in internal controls.
  • Lawmakers mandated the audit in 2025 as part of an $88.2 million funding approval for the kauhale initiative, targeting no-bid contracts awarded to nonprofit HomeAid Hawaiʻi for developing tiny home villages on state land.
  • Kondo's preliminary report identified nearly $1.7 million in unsupported or duplicative costs, including $916,000 in questionable payments and $770,000 for invoices HomeAid later returned to the state.
  • Governor Josh Green called the audit a "personal vendetta," while HomeAid Hawaiʻi attorney Ian P. Luthringer wrote to Kondo on Monday arguing the findings contain "significant mischaracterizations" of the nonprofit's performance.
  • Despite preliminary findings, Green maintains the program is an "extraordinary success" providing 940 more beds for homeless individuals, emphasizing its role helping those with medical, mental health, or substance-abuse issues.
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‘Vendetta’: Hawaii Governor Blasts Auditor Report On Key Homeless Program

Gov. Josh Green blasted Hawaiʻi State Auditor Les Kondo’s preliminary report on his signature tiny homes project, accusing the Legislature’s watchdog of being overly aggressive and expressing an unwillingness to help the administration with the endeavor.

·United States
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Civil Beat broke the news in Honolulu, United States on Wednesday, April 29, 2026.
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