We completed an inspection of HUD funds drawn from the Line of Credit Control System (LOCCS) to pay for construction at Savoy Place, the last phase of the Desire Development at The Housing Authority of New Orleans (HANO).  The Desire Development is a three-phase HOPE VI development, comprising of Abundance, Treasure, and Savoy Place.   We compared progress payments HANO made to the developer, Michaels Development Company, with documentation of construction work performed.  In addition, we discussed the records with key contractor personnel at HANO.

The objective of the inspection was to determine whether HUD funds drawn from LOCCS for Savoy Place before Hurricane Katrina corresponded with the cost of construction.

We determined that the progress payments to Michaels Development Company were used for construction work completed at Savoy Place and that HUD funds drawn corresponded with the progress payments made.