We audited the Harris County Hurricane Harvey Community Development Block Grant Disaster Recovery (CDBG-DR) program. We initiated this audit as part of our commitment to helping the U.S. Department of Housing and Urban Development (HUD) address its top management challenges and to support HUD’s strategic objective to support effectiveness and accountability in long-term disaster recovery. Further, Congress has expressed strong interest in HUD’s disaster programs.
Our objective was to assess the efficiency and effectiveness of Harris County’s Hurricane Harvey CDBG-DR program and whether the program was assisting disaster participants in a timely manner; specifically, to examine the status of its HUD-approved activities and challenges, if any, in implementing the activities.
We found that Harris County had not efficiently or effectively operated its Hurricane Harvey CDBG-DR program. Specifically, 3 years after Hurricane Harvey, Harris County had assisted only 112 of 4,513 planned program participants and had spent less than 1 percent of its grant funds. Harris County’s challenges included an inability to effectively assist applicants and inefficiencies in its reimbursement program. These conditions occurred because Harris County was overwhelmed by the number of programs it intended to operate and its staff did not respond effectively to Texas General Land Office (Texas GLO) guidance and training. As a result, the Texas GLO reduced the number of Harris County’s programs and assumed control of $338.7 million (27 percent) of its $1.2 billion Hurricane Harvey grant suballocation.
We recommend that the Director of the Office of Block Grant Assistance require the Texas GLO to (1) provide its plan to continuously monitor Harris County’s pace and performance in its remaining program and take appropriate action to ensure that program goals are met; (2) set performance and financial milestones for all programs and activities funded under Harris County’s subrecipient agreement; (3) monitor Harris County’s capacity to manage its funds and address duplicative, inefficient, and cost-prohibitive processes or positions; and, (4) review Harris County’s priorities for providing assistance to program participants. Implementation of these recommendations would include determining whether additional activities need to be combined or eliminated and repurposing additional grant funds if necessary.
Recommendations
Community Planning and Development
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Status2021-FW-1001-001-AOpenClosed
We recommend that the Director of the Office of Block Grant Assistance require the Texas GLO to provide its plan to continuously monitor Harris County’s pace and performance in its remaining Hurricane Harvey CDBG-DR program and take appropriate action to ensure that program goals are met. The plan should include a process for repurposing additional grant funds, if necessary, to avoid potential recapture due to Harris County’s inability to meet the expenditure deadline established under its subrecipient agreement with the Texas GLO, and to allow the Texas GLO to meet the expenditure deadline for its grant award.
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Status2021-FW-1001-001-BOpenClosed
We recommend that the Director of the Office of Block Grant Assistance require the Texas GLO to set performance and financial milestones, including approval of Harris County’s projects and obligation and expenditure of funds, for all programs and activities funded under the Harris County subrecipient agreement through the remainder of the contract and deadlines for Harris County to achieve those milestones. This would include the Texas GLO (1) providing its plan to continually assess whether Harris County is meeting the established milestones within the prescribed time period; (2) taking appropriate action as outlined in the subrecipient agreement for any missed deadlines; and (3) , if necessary, determining whether additional programs need to be combined or eliminated from the subrecipient agreement.
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Status2021-FW-1001-001-COpenClosed
We recommend that the Director of the Office of Block Grant Assistance require the Texas GLO to provide evidence of subrecipient monitoring of Harris County’s capacity to manage its Hurricane Harvey grant funds to address duplicative, inefficient, and cost-prohibitive processes or positions. The evidence should include any corrective actions that have been imposed and Harris County’s response.
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Status2021-FW-1001-001-DOpenClosed
We recommend that the Director of the Office of Block Grant Assistance require the Texas GLO to ensure that Harris County obtains adequate training for its program staff and that the staff continuously demonstrates their understanding of and competence to operate Harris County’s programs within applicable requirements. This would include ensuring that Harris County takes appropriate steps to remedy situations where staff are not operating the program within applicable requirements.
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Status2021-FW-1001-001-EOpenClosed
We recommend that the Director of the Office of Block Grant Assistance require the Texas GLO to review Harris County’s Housing Reimbursement Program policies, including assistance prioritization, to ensure compliance with the Texas GLO’s action plan and amendments. This would include the Texas GLO analyzing the County’s project pipeline to determine whether changes are warranted to ensure that those most in need are prioritized to receive limited Federal assistance. The Texas GLO should provide HUD with an analysis of the County’s project pipeline within 90 days of its review to share the results and demonstrate compliance with its action plan.