After being battered by government officials and the media, a nonprofit at the center of a scandal involving millions of dollars in federal grant funds is fighting back.

On Monday, an attorney for the ORI Anuenue Hale Inc., sent a strongly worded letter to Honolulu Corporation Counsel Donna Leong chastising the city and the U.S. Department of Housing and Urban Development for its handling of an investigation into the nonprofit’s dealings.

HUD has said ORI and the city have mismanaged nearly $8 million in Community Development Block Grant funds that were used to build facilities to serve the elderly and developmentally disabled.

On June 3, the federal agency asked the city to pay back the money and questioned whether ORI had solicited kickbacks from a contractor and used campaign donations to garner political influence.

The city, at the behest of Honolulu Mayor Kirk Caldwell, performed its own investigation into the matter, and on July 18 released its findings, which included an offer to reimburse $1.88 million to the CDBG program.

But Honolulu attorney, William Shipley, who now represents ORI, said these investigations are flawed and are based on outlandish allegations, particularly those related to the supposed kickback.

“ORIAH believes HUD’s claims — to the extent they actually involve ORIAH — are without factual substance and/or are based on dubious legal analysis,” Shipley wrote.

He said ORI had sent the city rebuttals to many of HUD’s claims — including those that the nonprofit’s Wahiawa facilities weren’t complying with federal block grant standards — but that the information seemed to be ignored.

As a result, Shipley said, the nonprofit was “dismayed” and “astonished” when the city “caved-in to HUD’s demands, making only minimal effort to defend itself, or to defend” ORI.

“Further, ORIAH and its principals remain angry and embarrassed by misinformation put out to the media in comments by both HUD and C&C when each chose to make their letters public,” Shipley said.

He added that the city officials “obscured” many of HUD’s complaints by “pointing the finger of blame at ORIAH” instead of fully acknowledging the city’s own missteps as they were related to the federal grant program.

Shipley’s letter underscores the fractious relationship between HUD, the city and ORI, which is headed by Susanna Cheung.

The block grant funds were used to buy and develop nearly 30 acres of land in the pineapple fields next to the Dole Plantation in Central Oahu. The facilities included the Aloha Gardens Wellness Center and Camp Pineapple 808, which under federal funding guidelines were supposed to serve seniors and developmentally disabled adults.

But HUD contends the facilities haven’t lived up to federal rules, and in fact had found that Camp Pineapple 808 was marketing its cabins for weddings, fundraisers and corporate retreats, under the noses of city officials who were supposed to be monitoring the nonprofit.

The city has vowed to bring ORI and its facilities back into compliance with federal rules.

In a statement Tuesday, Leong said Shipley’s letter simply reiterates positions the nonprofit has taken in discussions with the city.

She said the city’s proposals to HUD are subject to an agreeable settlement with ORI and City Council approval.

Shipley’s letter also notes that the nonprofit is willing to work with the city to find ways to better use Camp Pineapple 808, possibly opening it up to others who might be in need.

You can read Shipley’s full letter here: