HUD: City's Use of Federal Monies 'Unacceptable'

The Wahiawa elderly daycare center that misused $7.9 million in federal grant money refused to cooperate with federal investigators, according to a report from the U.S. Department of Housing and Urban Development.

HUD's report details violations that trace back through three administrations of Honolulu leadership, beginning when former Mayor Jeremy Harris was in office. The nonprofit at the center of the investigation, ORI Anuenue Hale, Inc., has received the most in federal housing grants of any other program. ORI has not returned Civil Beat's repeated requests for comment.

"The issue now will be: Will ORI play ball?" HUD spokeswoman Gene Gibson told Civil Beat via phone from San Francisco Wednesday morning. "Will they work with the city? It's really now between the city and ORI to deal with those compliance issues by the (June 27) deadline. If not, they need to pay the American taxpayer back."

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