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HUD's Office of Affordable Housing Programs Could Improve Its Oversight of Participating Jurisdictions' HOME Investment Partnerships Program-Funded Rental Housing Projects' Leases

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We reviewed the U.S. Department of Housing and Urban Development’s (HUD) Office of Affordable Housing Programs’ oversight of leases in HOME Investment Partnerships Program-funded rental housing projects.  The review was part of the activities in our fiscal year 2015 annual audit plan.  Our objective was to determine whether HUD’s Office had adequate oversight of participating jurisdictions to ensure that leases between rental projects’ owners and households for Program-funded units did not include language prohibited by HUD’s regulations.

HUD’s Office of Affordable Housing Programs could improve its oversight of participating jurisdictions to ensure that leases between rental housing projects’ owners and households for Program-funded units do not include language prohibited by HUD’s regulations.
We recommend that the Director of HUD’s Office of Affordable Housing Programs implement adequate procedures and controls to ensure that leases between rental housing projects’ owners and households for Program-funded units do not include language prohibited by HUD’s regulations.