City to reimburse $1.8 million to feds due to HUD concerns

HUD questioned oversight of grants to serve elderly, disabled

 UPDATED 12:28 AM HST Jul 20, 2013
HONOLULU -

Honolulu proposes reimbursing the federal government $1.8 million in response to concerns about lax oversight of projects operated by a nonprofit agency.
    
The U.S. Department of Housing and Urban Development said Honolulu must return $8 million in grants. The department questioned oversight of grants given to Opportunities and Resources Inc. Anuenue Hale for projects to serve elderly and disabled people.
    
In a response letter to HUD's Honolulu field office Thursday, the city acknowledges compliance concerns but is working to resolve them. The city says wants to return $1.8 million for a project not eligible under the Community Development Block Grant.
    
The letter says the Ethics Commission will investigate ORI campaign contributions to city employees running for office. The city found no evidence of a quid pro quo relationship.

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