The U.S. Department of Housing and Urban Development (HUD) sent a letter to the Mayor of Honolulu summarizing the status of findings and concerns from an April 2011 monitoring of the City and County of Honolulu's Community Development Block Grant program. Several findings and concerns remained open, including issues with how a subrecipient was using CDBG funds and documenting eligibility. HUD requested additional information and actions from the City by October 31, 2011 to fully resolve the remaining open items.

1. 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 1
The Honorable Peter B. Carlisle
Ma or
Cit’ and Counts’ of I lonolulu
530 South King Street
Honolulu, HI 968 1 3
1)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 your
letters of September23 and 30. 2011 which responded to our monitoring report. HUD notes and
appreciates that the City and County of Honolulu (City) and its subrecipients are making
progress in addressing the CDBG findings and concerns. The status of the findings and concerns
are as follows:
CPD Finding M11-012 (ACT)— OR! Anuenue Hale Aloha Gardens Is Not Complying with
CDBG 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 by
October 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.

2. 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 by
October 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 with
Disabilities public service project until the City and OR! clearly define the specific tasks to be
performed and the specific increase of the public service activity.
Corrective Action 1-4. This corrective action was satisfactorily addressed in the City’s
response. 1-IUD accepts the City’s documentation that the wire transfer transaction has been
completed and $66,681.47 in ineligible expenses for the ORI Day Care for Elderly and Adults
with 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 the
reports 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. 2011
for the remaining years of the CDBG real property use period.
corrective Action 2. This corrective action was satisfactorily addressed in the City’s
response. 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’s
response. HUD accepts the City’s post development monitoring plan including a system for
tracking and verifying CDBG program income generated by subrecipients or other entities to
which CDBG funds are passed through.
Corrective Action 2. The City missed the September 30, 2011 deadline to complete this
corrective action. The City needs to continue to resolve this issue and to review ORI financial
records and records on agreements with outside organizations for the use of the Wellness Center
an Came P n nL OS I he C’ netd r ‘ HI TD J mn k CDBG er ii
income from the usc or rental of the Wellnes Center and Camp Pineapple has been remitted
from 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’s
response. HUI) accepts the City’s changes made to its conflict of interest policies and
procedures and the City’s conflict of interest employee annual certification and disclosure form.

3. CPD Concern NI 11-015 (ACT — Pablo Chinese Home’s Documentation of National Objective
Compliance
This concern remains open. The City missed the September 30. 2011 deadline to resolve
this concern. HUD notes that the Cit has conducted on—site monitorinLi visits to Pablo Chinese
Home and Hospice Hawaii and that Pablo Chinese Home and Hospice Hawaii have agreed to
and/or made changes to their admissions processes to require copies of participant identification
that sufficiently documents elderly status. The City needs to submit documentation of the
changes made to the Pablo Chinese Home’s and Hospice Hawaii’s admissions process by
October 31,2011.
In an effort to ensure a timely resolution of the open findings and concerns and reach a
final solution acceptable to HUD by October 31. 2011, the City must report to HUD on its
progress every 15 days until the remaining findings and concern are resolved, Should you have
any questions, please call. Rebecca Borja. Senior Community Planning and Development
Representative, at 808-522-8180, extension 265.
Sincerely.
Mark A. Chandler. Director
Office of Community Planning
and Development
cc:
Mr. Michael R. Hansen
Director
Department of Budget and Fiscal Services
City and County of Honolulu
530 South King Street. Room #208
Honolulu, HI 968 13
Mr. Samuel E.H. Moku
Director
Department of Communit Services
City and Count of 1—lonolulu
715 South Kine Street. Suite 311
Honolulu, HI 96813
Ms. Holly Kawano
Federal Grants Coordinator
Department of Budget and Fiscal Services
City and County of Honolulu
530 South King Street. Room #208
Honolulu, Hf 968 I 3

4. 4
Internal H1J[) Distribution:
lilt
(‘hron — Green CP1)
c’hron -- Blue FP1
(handler
Identification Lines: J:MonitoringFY 201 1201 1 City CDBCCityjOl LMonitoring Closeout Ltr 2.Docx
Control No, In: 2011.0815, 2012.0002 Control No. Out:
Control Number
File: City aid County of Honolulu, FY 2011, On-Site Monitoring CDBG 2012.0011
Suspense: None
Correspondence Originator Concurrence Concurrence Concurrence Concurrence Concurrence
Code 9CD
Name BORJA
Date 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.