Hawaiʻi County Council advances bill to extend housing and homelessness fund for 2 more years

Over three hours of testimony and discussion, the Hawaiʻi County Council advanced the first reading of a bill that would extend the county’s Homeless and Housing Fund to June 2029.

The fund, established as a pilot program in 2022, allocates a minimum of $9 million annually from property tax revenue to local nonprofits to address homelessness. Bill 192 would extend the program, set to expire in June 2027, by an additional two years.

However, some council members and residents have expressed concerns that the money hasn’t significantly reduced the homeless population on Hawaiʻi Island.

Earlier this year, the council called for an audit of the Homeless and Housing Fund, which has awarded more than $33.5 million in grants to nonprofits, to determine the effectiveness of the expenditures.

The audit was meant to influence the program’s future, which currently sunsets in 2027, council members said.

Although results of the audit will not be available until the year-end, the Hawaiʻi County Council voted 7-2 to pass Bill 192 to a second reading, with Vice Chair Dennis Onishi and Council Member Matt Kanealiʻi-Kleinfelder voting no.

“We have budget hearings every year from different departments, which are scrutinized heavily for their budgets, and I think that data is important when it comes to using taxpayer money,” Kanealiʻi-Kleinfeld said. “This is a complex problem, and it’s good for us to have that information to look at one that addresses homelessness.”

On Wednesday, testifiers supported Bill 192, noting that the impact might not be visible through annual homelessness figures but in the number of people prevented from becoming homeless.

“Over the past several years, Hawaiʻi Island has had a coordinated response to homelessness, housing stabilization, behavioral health, long-term support, and more,” said Hannah Presont-Pita, executive director of the Big Island Substance Abuse Council. “This is not simply about individual programs because people can more easily move between services now.

“I believe accountability is needed, and we should ask providers how they are using their dollars and how organizations are better equipped today than they were yesterday.”

According to Hawaiʻi Police Department Assistant Chief Thomas Shopay, the department has received 2,000 calls for service related to homelessness this year, which is not a notable decrease from previous years.

“Houselessness and housing challenges are not crimes, but we are called first for many issues,” Shopay said. “If additional resources are available, we would appreciate being able to help people find the right resources for problems that are beyond police control.”

Shopay noted that after a mental health crisis, individuals often return to the same situation due to a lack of available long-term housing for people with these issues.

Recognizing the complex nature of homelessness and housing, Hawaiʻi County Council Chair Holeka Inaba introduced an amendment to Bill 192 allowing funds for county programs and qualified nonprofits, removing the housing development and stabilization requirement, and adding relocation services as permitted use.

Inaba confirmed the amendment had support from the Office of Housing and Community Development, allowing the Office to seek funding for its underfunded programs.

According to Kehaulani Costa, administrator of the Office of Housing and Community Development, the county seeks an operator for the Kukuʻiola Emergency Shelter and Assessment Center that is set to open next year in West Hawaiʻi.

“Operating that year to year will be costly for the county,” Costa said. “That is an example of a program that would qualify for a portion of the funding.”

Inaba stated that opening funding to county programs enhances possibilities for positive impacts on houselessness and housing issues.

“If the Office of Housing and Community Development is comfortable with adding county programs, I think it is necessary,” Council Member Rebecca Villegas said. “Kukuʻiola coming online is huge, long-awaited, and much needed to provide relief on the west side.”

The Bill removes the housing development and stabilization requirement because an affordable housing production fund already supports similar work.

Relocation services involve connecting with a person experiencing homelessness and relocating them to their home state or reuniting them with family on the mainland.

During the meeting, Shopay said officers often work with organizations to relocate and reunite individuals, especially with recurring police responses in West Hawaiʻi.

“Relocation is severely helpful for District 7,” Villegas said. “Finding identification is the first step, then comes the money and resources to relocate a person.”

In past sessions, Villegas questioned funding effectiveness and grant decisions, but increased transparency and amendments have alleviated concerns about equitable distribution.

“These discussions today, and especially when I see the audit, I feel a lot better about this funding,” she said. “I’m seeing the effort made for more equitable distribution, which will allow programs across the island to provide wraparound services.”

The County Council voted 7-2 to retain the amendment before voting to pass the bill to a second reading.

“Some may see people outside and know there is still work to do, but what they don’t see is the person who kept their housing or someone cycling from arrest to finding somewhere to live and supporting their family again without knowing what it took to get them there,” said Les Estrella of Going Home Hawaiʻi. “These outcomes matter, too. The impact goes beyond housing. It helps them stay housed, rebuild relationships, and benefit their families. The person who never becomes homeless is also a success.”

Estrella said he has been homeless and knows what a second chance can mean.

“The Office of Housing and Community Development has helped Going Home Hawaiʻi build more pathways that we could not fund without this bill,” Estrella said.

Hawaiʻi County Council will hear the bill for a second reading in two weeks.