Hawaii's tiny-home village program for homeless residents is under pressure after a state audit questioned how contracts and spending were handled, though the nonprofit builder behind much of it says the model is working and expanding.

• 25 kauhale villages are now built statewide, with nearly 900 beds; the nonprofit HomeAid built nine of them.
• A preliminary state audit flagged $1.7 million in questioned spending tied to the fast-moving emergency procurement process.
• HomeAid says less than 3% of its invoices were credited or corrected, and it has since reorganized its finances and launched a public dashboard showing where the money went.
• What started as temporary shelter under the governor's emergency order is turning into permanent housing, and the group wants the rules written into law instead of staying an emergency measure.
• The push now is to open these villages to low-wage workers like bus drivers and restaurant staff, not just homeless residents — polling shows overwhelming public support for that.

Outlook: Expect a fight over whether kauhale stays under emergency powers or moves into normal contracting rules, with the final audit likely to sharpen the debate.