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Línea Directa

REPORTAR FRAUDE, DESPERDICIO O ABUSO
Julio 27, 2010
  • Public and Indian Housing
2010-AT-1007
ig1041007.pdf

We reviewed the Housing Authority of the City of Wilson (Authority) because it was granted $9.2 million for Public Housing Capital Fund projects (capital funds) under the American Recovery and Reinvestment Act of 2009 (Recovery Act). In addition, we received a citizen’s complaint alleging that the Authority used unethical procurement practices and did not plan to use Recovery Act funds effectively. Our objectives were to evaluate the Authority’s capacity to administer additional capital funds received under the Recovery Act and determine whether the Authority followed Federal procurement regulations. We expanded our objectives to include an assessment of the eligibility of the Authority’s planned green renovation of 68 senior housing units using a $7.6 million Public Housing Capital Fund Competitive (Recovery Act Funded) grant.

The Authority lacked sufficient capacity to administer the additional $9.2 million in capital funds it received under the Recovery Act. It failed to comply with procurement and financial management requirements in its administration of other capital and operating funds and could not provide assurance that it properly awarded more than $2.4 million for contracts. The Authority’s plan to substantially rehabilitate 68 senior housing units into an energy-efficient, green community using a $7.6 million Recovery Act competitive capital fund grant was ineligible. The cost of renovating this development as planned would result in the inefficient and wasteful use of Federal funds and the unnecessary displacement of elderly tenants.

We recommend that the Director of the Greensboro Office of Public Housing continue increased oversight and monitoring of the Authority and require it to develop, implement, and enforce written policies and procedures for its procurement and financial management functions. The Authority must also provide acceptable support for unsupported costs or repay them. We also recommend that the Deputy Assistant Secretary for Public Housing Investments rescind the Authority’s $7.6 million Recovery Act competitive grant.