A state audit says Hawaii's kauhale homeless-village program spent millions without proper approvals, which is bad news for the governor's signature housing push even as the groups running it insist it works.

• The auditor flagged about $13 million in unsupported and unauthorized costs tied to the tiny-home villages.
• The state office running the program was found unprepared to manage it, with weak oversight of nearly $40 million in no-bid deals with the nonprofit HomeAid Hawaii.
• Governor Josh Green says the spending was mischaracterized and that the rush was deliberate — the goal was to get people off the street fast under emergency orders.
• HomeAid says much of the questioned money was already settled through normal invoice corrections, and that it worked under three different state homeless coordinators.
• Supporters point to results: more than half of those entering the Iwilei village left the streets, and unsheltered homelessness on Oahu is down 20% since 2024.

Outlook: Expect tighter contracting rules and more reporting requirements on the program, but no sign the state plans to slow down building the villages.