A new state audit says Hawaii's tiny-home village program spent $13 million without proper authorization or paperwork, which is bad for Governor Green's signature homelessness effort.

• The state auditor found the homelessness office was not ready to run the program and failed to oversee it.
• Construction on the tiny-home villages started before contracts were even finalized.
• Green rejects the framing, saying the report mischaracterizes the payments and that the state has already moved to claw back improper spending.
• The state homeless coordinator accepted all 11 recommendations, including fixing how contracts are handled.
• Home Aid Hawaii says part of the flagged $13 million was already settled under contract terms as procedures changed.

Outlook: Expect tighter contracting rules and legislative scrutiny of the program's spending, with Green continuing to defend the villages themselves as effective.