The U.S. Department of Housing and Urban Development – Office of Inspector General reviewed a complaint against a project that was partially funded by the Office of Community Planning and Development’s HOME Investment Partnerships program.  Our objective was to determine whether the allegations in hotline complaint number HL-2013-0804 were valid.  The complainant alleged that while Clare View Seniors Apartments, LP, was in the process of obtaining HOME funding through the State of Washington and the City of Spokane, it demolished two buildings on the site without paying or certifying Davis-Bacon Act wages, did not use a competitive procurement process, and had a conflict of interest with the general contractor. 

We found that Clare View Seniors Apartments, LP, did not always pay and certify Davis-Bacon Act wages appropriately.  However, this deficiency was corrected before our review.  We also determined that the developer did not use a competitive procurement process and was also the general contractor on this project.  However, although other HUD programs require a competitive procurement process, HOME regulations do not require that the developer use a competitive procurement process, nor do they prohibit the developer from also being the general contractor.  This report contains no recommendations.