We performed a review of the New York City Housing Authority’s (Authority) capacity to administer the approximately $423 million in capital funds awarded under the American Recovery and Reinvestment Act of 2009 (Recovery Act) in support of the Office of Inspector General’s (OIG) goal to report on Recovery Act recipients’ capacity to administer funds received. The objective of the review was to determine whether the Authority’s general, financial, and procurement controls were adequate to provide assurance that it had the capacity to effectively manage the Recovery Act funds.

Our limited review indicated that the Authority’s general, financial, and procurement controls were generally adequate to provide assurance that it had the capacity to effectively manage its Recovery Act funds. Authority officials had plans for using the funds in a timely manner and had addressed previously reported weaknesses in its Capital Fund program administration. To provide greater assurance that funds are appropriately obligated and expended, we recommended that HUD closely monitor the Authority to ensure that it will achieve planned accomplishments within the prescribed timeframes and take action necessary to ensure compliance with Recovery Act requirements.