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The U.S. Department of Housing and Urban Development (HUD) – Office of Inspector General audited the Idaho Housing and Finance Association’s HOME Investment Partnerships Program because it received approximately $6 million in HOME grants from the U.S. Department of Housing and Urban Development (HUD) in each of fiscal years 2008 through 2010. The objective of our review was to determine whether Idaho Housing complied with HOME match fund and compliance monitoring requirements. This is the second of two reports on Idaho Housing's HOME program.

Idaho Housing did not always comply with HOME match and compliance monitoring requirements. Specifically, it did not (1) always comply with requirements for providing match funds for its HOME projects and (2) adequately monitor the compliance of its HOME projects. We recommended that HUD require Idaho Housing to provide eligible matching contributions, support, or both for more than $4.6 million in ineligible and unsupported matching contributions or repay HOME grant funds received of up to $18.5 million for any matching contributions it cannot support and separately track its affordable housing bond matching contributions carried forward. We also recommend that Idaho Housing bring its properties up to HUD standards or reimburse its HOME trust fund from non-Federal funds up to $2.2 million for any properties that remain substandard.