We audited Campaige Place at Jackson (Campaige Place) to determine whether it used its project funds in compliance with the U.S. Department of Housing and Urban Development’s (HUD) regulatory agreement and other federal requirements.

Campaige Place did not use its project funds in compliance with HUD’s and other federal requirements. Specifically, we determined that:

•Owner advances of $73,750 were repaid when the project had no surplus cash,
•Tenant security deposit accounts were underfunded by $57,608,
•An unexplained payable of $26,328 was mistakenly recorded as a liability,
•Support was incomplete or missing for operating expenses of at least $8,341, and
•Management expenses of $20,714 were inappropriately charged to the project.

We recommend that the director of the San Francisco multifamily hub require the project’s owner/agent to repay or support questioned costs of $160,413 less $81,284 already repaid or supported and to remove the unsupported payable of $26,328 from the project’s accounts. We also recommend that the director require the project to establish controls to ensure compliance with HUD’s regulatory agreement and other federal requirements.