We reviewed the Metropolitan Development and Housing Agency’s (Agency) Neighborhood Stabilization Program 2 (NSP2). We selected the Agency for review because it received, in a consortium established with The Housing Fund, Urban Housing Solutions, and Woodbine Community Organization, a nearly $30.5 million NSP2 grant under the American Recovery and Reinvestment Act of 2009. The Agency was the only NSP2 grant recipient in Tennessee. Our objective was to evaluate the Agency’s use of NSP2 funding, including the propriety of its activities, obligations, expenditures, and reports to the U.S. Department of Housing and Urban Development (HUD).

The Agency generally administered its NSP2 funds in accordance with HUD’s requirements. It was executing its program in accordance with its approved application, its planned activities and expenditures were eligible and supported, and its reports to HUD were generally accurate and timely. Since the Agency generally complied with NSP2 requirements, we did not recommend corrective action.