We performed a nationwide audit of the Asset Control Area Program to assess the effectiveness of the Program in meeting its objective of expanded homeownership opportunities in revitalization areas. The audit included reviews at the U.S. Department of Housing and Urban Development (HUD), Single Family Housing in Headquarters, and HUD's Philadelphia and Santa Ana Homeownership Centers (HOC. Also, it included an onsite review of three Local Partners; Rochester, New York; San Bernardino, California; and Washington, D.C. This report contains three findings with recommendations for corrective action.

Within 60 days, please provide us for each recommendation in this report, a status report on: (1) the corrective action taken; (2) the proposed corrective action and the date to be completed; or (3) why action is not considered necessary. Also, please furnish us copies of any issued correspondence or directives related to this audit. Please be advised that Handbook 2000.06 REV-3 requires management decisions to be reached on all recommendations within 6 months of report issuance. It also provides guidance regarding interim actions and the format and content of your reply.

Should you or your staff have any questions, please contact William H. Rooney, Assistant District Inspector General for Audit, on (212) 264-8000, extension 3976.