We recommend that the Director of the Fort Worth Office of Community Planning and Development require the City to repay $2,398,872 from non-Federal funds to the City’s HOME program for funds committed to projects before the completion of an environmental review or HUD approval.
2019-FW-1004 | June 17, 2019
The City of Dallas, Dallas, TX, Did Not Follow Environmental Requirements or Effectively Manage Its Community Housing Development Organizations
Community Planning and Development
- Status2019-FW-1004-001-AOpenClosed$2,451,097Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
- Status2019-FW-1004-001-BOpenClosed$424,325Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
We recommend that the Director of the Fort Worth Office of Community Planning and Development require the City to support or repay $424,325 from non-Federal funds to the City’s HOME program for funds committed without documentation of an environmental review.
- Status2019-FW-1004-001-COpenClosed
We recommend that the Director of the Fort Worth Office of Community Planning and Development require the City to comply with HOME’s environmental requirements, including required restrictive contract language, and maintaining documentation of environmental reviews.
- Status2019-FW-1004-002-AOpenClosed$1,959,913Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
We recommend that the Director of the Fort Worth Office of Community Planning and Development require the City to support or repay $1,959,913 from non-Federal funds to the City’s Community Development Block Grant program for funds expended for Serenity Place Apartments because the City cannot locate any of the project files.
- Status2019-FW-1004-002-BOpenClosed$1,676,716Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
We recommend that the Director of the Fort Worth Office of Community Planning and Development require the City to support or repay $1,402,875 from non-Federal funds to the City’s HOME program for CHDO draws paid with no supporting documentation.
- Status2019-FW-1004-002-COpenClosed$180,051Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
We recommend that the Director of the Fort Worth Office of Community Planning and Development require the City to support or repay $80,842 in program income from non-Federal funds to the City’s HOME program.
- Status2019-FW-1004-002-DOpenClosed$105Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
We recommend that the Director of the Fort Worth Office of Community Planning and Development require the City to repay $105 in ineligible costs from non-Federal funds to the City’s HOME program.
- Status2019-FW-1004-002-EOpenClosed
We recommend that the Director of the Fort Worth Office of Community Planning and Development require the City to strengthen and comply with its underwriting and project evaluation policies and procedures, including ensuring that when it signs and commits funds, project construction can begin within 12 months.
- Status2019-FW-1004-002-FOpenClosed
We recommend that the Director of the Fort Worth Office of Community Planning and Development require the City to develop and implement policies and procedures on documentation required to support draws.
- Status2019-FW-1004-002-GOpenClosed
We recommend that the Director of the Fort Worth Office of Community Planning and Development require the City to comply with requirements to obtain the required income documentation, including ensuring that employees know and apply the requirements.
- Status2019-FW-1004-002-HOpenClosed
We recommend that the Director of the Fort Worth Office of Community Planning and Development require the City to develop and implement policies and procedures to review source income documentation as required by the HOME regulations.
- Status2019-FW-1004-002-IOpenClosed
We recommend that the Director of the Fort Worth Office of Community Planning and Development require the City to develop and implement policies and procedures for documenting the results of its recertification procedures, including documenting the results of unpaid taxes, the resolution of CHDO audit findings, and the resolution of ineligible CHDO board members or employees because of a SAM search.
2019-AT-1004 | June 14, 2019
The North Carolina Department of Commerce Did Not Administer Its Neighborhood Stabilization Program Grants as Required by HUD
Community Planning and Development
- Status2019-AT-1004-001-COpenClosed
Establish and implement a written policy and procedures to recapture and reallocate unused NSP funds in a timely manner.
- Status2019-AT-1004-001-EOpenClosed
Update its records retention policy to meet HUD’s records retention requirements for supporting documentation for Federal program expenses, including salaries.
- Status2019-AT-1004-001-HOpenClosed$11,916,072Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
Develop and implement a remediation plan for the six NSP activities to show that the national objectives have been met as required to support $11,916,072 in program funds drawn or reimburse its program from non-Federal funds.
- Status2019-AT-1004-001-IOpenClosed
Work with the Department so that it plans properly to ensure that the six activities identified in this report meet a national objective thereby avoiding extended project delays.
- Status2019-AT-1004-001-JOpenClosed
Review the Department’s remaining NSP grant expenditures before its drawdowns to ensure that the expenditures are eligible and adequately supported.
2019-FW-1003 | June 10, 2019
Northline Point Apartments, Houston, TX, Multifamily Section 8 Program, Subsidized Unsupported Tenants and Uninspected Units
Housing
- Status2019-FW-1003-001-AOpenClosed$1,054,150Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
We recommend that the Southwest Region Director of Multifamily Housing require the Northline Point Apartments’ owner to support that the subsidies for 51 units without annual physical inspections, without required EIV reports, or missing files were eligible and accurate or repay HUD $1,054,150 for those subsidies. Repayment must be from nonproject funds.
- Status2019-FW-1003-001-BOpenClosed
We recommend that the Southwest Region Director of Multifamily Housing require the Northline Point Apartments’ owner to use correct dates for tenants who move in or out of subsidized units or transfer to other units. The move-ins, move-outs, and transfers must be adequately documented and supported.
- Status2019-FW-1003-001-COpenClosed
We recommend that the Southwest Region Director of Multifamily Housing require the Northline Point Apartments’ owner to ensure that form HUD-50059 transactions are properly coded and adequately document and support the transactions.