DEPARTMENT OF BUDGET AND FISCAL SERVICESCITY AND COUNTY OF HONOLULU530 SOUTH KING STREET, ROOM 208 • HONOLULU, HAWAII 95813

PHONE: (808) 7E8-3900 • FAX: (808) 766-3179 • INTERNET: whonoftjlu.gov

PETER B CARLISLEMAYOR

M(CHAEL R HANSENDIRECTOR

NELSON H KOYANAGI JRDEPUrV DIRECTOR

October 14, 2011437765

Mr. Mark A. Chandler, DirectorOffice of Community Planningand Development

U.S. Department of Housingand Urban Development

Honolulu Field Office - Region IX500 Ala Moana Boulevard, Suite 3AHonolulu, Hawaii 9681 3-4918

Dear Mr. Chandler:

Subject: On-Site Program MonitoringApril 11-25, 2011Community Development Block Grant (CDBG) Program

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This responds to your letter dated October 11, 2011, which updated the status offindings and the concern originally raised in the U.S. Department of Housing and UrbanDevelopment’s (HUD) April 11-25, 2011 on-site monitoring. We are pleased that HUD hasaccepted some of our corrective actions and has also closed a monitoring finding. Asrequired, to ensure the timely resolution of the monitoring, the City will continue to submit aprogress update every 15 days until the remaining findings and concern are resolved.Attached is our report of the City’s progress, which incorporates HUD’s most recent update.

The City remains committed to addressing and closing all open findings and the concernraised and appreciates HUDs continued assistance. Should you. have any questions orreq,, re a u tcr’a orat c ecad ng ‘ese ma ?ers o ease a0 ‘“e a 6839O1

MRH/HK:ts

Attachment

Sincerely,

Michael Hansen JDirector

cc: Department of Community Services

Attachment 1

CPD Finding Ml 1-012 (ACT> — ORI Anuenue Hale Aloha Gardens Is Not Complyingwith CDBG Eligible Use and National Objective

Corrective Actions 1-1 and 1-2.

1-2. The City and OR! Anuenue Hale Inc. (ORIAH) are preparing a detailedplan to increase the utilization of the Wellness Center to at least 50 eligibleelderly and adults with developmental disabilities during all normal hours ofoperation. ORIAH has identified two senior organizations and has engaged infurther discussions to have those groups attend classes at the Wellness Center,An additional class has been added to the curriculum at the Weilness Center anddiscussions are in progress to add other classes and activities. Additionally,various marketing efforts and press releases have been issued, ranging from theclasses available at the Weliness Center, to general informational publicationstargeted to adult day care and senior centers to help garner communityawareness of the Weilness Center. ORIAH reports that, since August 2011,there has been an increase of 5 new elderly persons attending classes at theWeilness Center. The City will verify ORIAH’s report of the increase byOctober 31, 2011.

3. ORIAH has stated that it does not charge fees for the following activities atthe Wellness Center: exercise classes, Mahjong, hair services (no fees arecharged by ORIAH to the hair dresser or eligible user). ORIAH does have acontractual agreement with the Waianae Coast Comprehensive Health Care(WCCHC), whereby WCCHC will provide direct client care at the WellnessCenter facility. WCCHC bills their clients for services based on a $60 per dayrate (insurance and other benefits included), and ORIAH receives 60% of thisrevenue. ORIAH is working on providing a listing of fees charged toindividuals/groups that have made use of the Camp Pineapple 808 facility, whichmay vary based on the number of users in any particular group. After reviewingORIAH’s financials. the City will verify ORIAH’s statements and provide policiesand procedures to ensure that the fees do not preclude low and moderateincome persons from using the facilities.

45 The Cty and ORIAH are continuing to wcrk on dentafyng specfc steps toincrease the utihzation of the Camp to meet a CDBG national objective.

Corrective Action 1-3. The City is continuing to suspend CDBG funding for theORIAH public service activity.

I

Corrective Action 1-5. The City is continuing to resolve this issue and iscommitted to submitting its report of quarterly on-site monitoring visits of ORIAHto HUD within 30 days of the end of the quarter ending September 30, 2011, andthereafter for the remaining years of the CDBG real property use period.

CPD Finding Ml 1-013 (INC) — Tracking Program Income Generated by Subrecipients

Corrective Action 2, The City is currently reviewing ORIAH’s financial records,which were received by the City on October 5, 2011. Unfortunately, ORIAH hasnot yet been able to respond to further inquiries as their chief financial contacthad been out on leave. She has recently returned from her scheduled leave andthe City and ORIAH remain committed to addressing this issue.

CPD Concern M11-015 (ACT)— Pablo Chinese Home’s Documentation of NationalObjective Compliance

The City will submit evidence that the required changes have been made to thePablo Chinese Home and Hospice Hawaii’s admissions process by October 31,2011.

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