We reviewed The Community Builders, a nonprofit development and asset management firm that received a $78.6 million grant from the U.S. Department of Housing and Urban Development (HUD). Through the American Recovery and Reinvestment Act of 2009, Congress established the Neighborhood Stabilization Program 2 to grant funds to States, local governments, nonprofits, and a consortium of nonprofit entities for the purpose of stabilizing communities that have suffered from property foreclosures and abandonment. The goals of this program are realized through the purchase and redevelopment of foreclosed-upon and abandoned homes and residential properties.

The objectives of our review were to determine whether (1) the grantee was on track to expend Neighborhood Stabilization Program 2 funds within the statutory deadline, (2) Neighborhood Stabilization Program 2 funds were used for eligible and appropriate expenditures, and (3) the grantee can meet its program goals. We selected The Community Builders due to the size of its grant, its status as a nonprofit in a program typically used by units of local government, and its operations in multiple States. The audit was initiated by the Office of Inspector General (OIG) as part of its annual audit plan activities.

The Community Builders (1) was on track to expend the funding within the statutory deadline; (2) used Neighborhood Stabilization Program 2 funds for eligible and appropriate expenditures; and (3) with continued diligence, can meet its program goals.

This report does not contain recommendations, and no further action is necessary with respect to our report.