We audited the State of New Jersey’s Community Development Block Grant Disaster Recovery-funded Homeowner Resettlement program.  We conducted the audit based on the substantial amount of funds the State allocated to the program.  Our objective was to determine whether the State used Block Grant Disaster Recovery funds for its Homeowner Resettlement program to assist eligible homeowners in accordance with applicable U.S. Department of Housing and Urban Development (HUD) and Federal requirements. 

The State demonstrated that it used Disaster Recovery funds to assist eligible homeowners for its program.  Although the State obtained and provided documentation to demonstrate that homeowners in our sample occupied damaged residences as their primary residences at the time of the storm, it can strengthen its controls over this requirement for future homeowner grants.  
 
We recommend that HUD require the State to strengthen its controls over homeowner eligibility for future homeowner grants by maintaining documentation in its files to fully demonstrate compliance with the primary residency requirement before disbursing funds.