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Report Fraud, Waste and Abuse
June 30, 2015
  • Community Planning and Development
2015-DE-1003
2015-DE-1003.pdf

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited the City of Colorado Springs’ Community Initiatives and Economic Vitality Division based upon findings identified in U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, memorandum number 2014-DE-1802.  The objectives of our audit were to determine whether the City properly committed its HOME Investment Partnerships Program funds and monitored its subrecipients’ use of tenant-based rental assistance administrative funds.

The City committed HOME grant funds without having properly executed contracts or environmental reviews.  Specifically, it (1) committed funds for 5 Affordable Housing projects that lacked contracts or environmental reviews at the time of the commitment, (2) committed funds for 6 Affordable Housing and 26 Residential Rehabilitation projects that had a complete contract or environmental review but did not have the required signatures or dates, and (3) increased the original commitment amounts for 15 Residential Rehabilitation projects without having an amendment to the contract or a change order.  Additionally, the City did not monitor how its subrecipient spent tenant-based rental assistance administration funds.

We recommend that the Director of HUD’s Denver Office of Community Planning and Development (1) recapture $1.925 million of the City’s HOME grant, (2) require the City to provide support for $2.1 million in HOME grant expenses, (3) require the City to provide support for $36,090 in increased commitments, (4) require the City to develop and implement detailed policies and procedures to ensure better managerial oversight, (5) monitor the Authority’s use of the tenant-based rental assistance funds allocated to it from 2009 to 2014 to ensure that they were used for eligible administration costs, and (6) require the City to develop and implement detailed policies and procedures for monitoring its subrecipients to ensure that all HUD funds are spent for eligible program activities.