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Report Fraud, Waste and Abuse
February 24, 2010
2010-PH-1802
ig1031802.pdf

We completed a review of the District of Columbia’s (grantee) administration of HOME Investment Partnerships Program (HOME) funds that it provided to CEMI-Parkside Associates, LLP (Parkside Associates), a limited partnership managed by developer H.R. Crawford. The funds were provided for the rehabilitation/construction of a high rise property known as Parkside Terrace Apartments (Parkside Terrace). We initiated the review in response to a recommendation from HUD's Office of Affordable Housing. This is the first of two reports to be issued in relation to the grantee’s administration of its HOME program. The objective addressed in this memorandum report was to determine whether the grantee properly accounted for HOME funds it provided for the rehabilitation/construction of Parkside Terrace.

The grantee properly accounted for ineligible HOME funds it provided for the rehabilitation/construction of Parkside Terrace. However, it needs to formalize its procedures for monitoring HOME-funded project activities to ensure that HOME funds are used in accordance with all program requirements.

We recommend that HUD require the grantee to formalize and implement adequate procedures to ensure that its HOME funds are used in accordance with program requirements.