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The U. S. Department of Housing and Urban Development, Office of Inspector General, audited Oregon Housing and Community Services (Oregon Housing) to determine whether Oregon Housing established eligible grant projects, reported tax credit assistance program (TCAP) information into FederalReporting.gov correctly, and paid eligible TCAP expenditures in accordance with American Recovery and Reinvestment Act of 2009 requirements.

Oregon Housing complied with the applicable Recovery Act and HUD rules and regulations in establishing eligible grant projects, and in the reporting of TCAP information in FederalReporting.gov. However, Oregon Housing did not always disburse TCAP funds in accordance with program requirements. Oregon Housing disbursed TCAP funds to two project owners for unsupported legal fees, and ineligible appraisal fees, market study, project compliance, and legal fees.

We recommended HUD require Oregon Housing to provide supporting documentation for $80,098 in unsupported costs or reimburse its U.S. Treasury line of credit from non-Federal funds for any costs that remain unsupported. We also recommended that HUD require Oregon Housing to reimburse $20,334 to its U.S. Treasury line of credit from non-Federal funds for the ineligible expenditures. Further, we recommended that HUD require Oregon Housing to review the remaining TCAP projects for ineligible costs. As a result of our audit, on March 17, 2011, Oregon Housing reimbursed its U.S. Treasury line of credit for the unsupported and ineligible costs.