Repay from non-Federal sources the $85,204 in ineligible costs related to payments made beyond the contract terms.

Repay from non-Federal sources the $1,864,914 in ineligible costs related to environmental deficiencies

We recommend that the Little Rock Acting PIH Director require the Authority to design and implement adequate control systems to ensure that the executive management team provides oversight of its RAD program.

We recommend that the Little Rock Acting PIH Director require the Authority to develop and implement procedures to identify, report, and resolve conflict-of-interest and ethics concerns.

We recommend that the Little Rock Acting PIH Director require the Authority to design and implement financial controls to ensure that $829,544 in remaining predevelopment costs is properly accounted for and supported.

We recommend that the Little Rock Acting PIH Director require the Authority to support or repay $1,925,814 in predevelopment costs to its program from nonfederal funds.

We recommend that the Little Rock Acting PIH Director require the Authority to develop and implement an achievable plan to close the remaining projects and complete its RAD program conversions.

Take appropriate administrative actions against Authority staff for noncompliance.

Require the Authority to support the $9,608 payment with the required 2 years of average annual net earnings. For any amount that cannot be supported, HUD should require the Oak Towers Housing Development Group, LP, to pay the equivalent, from any of its reserves other than reserve for replacement, toward the Oak Towers mortgage principle.

Develop and implement controls over its incentives program, including record-keeping requirements; defined processes, such as a detailed checklist of available incentives, including monetary limits; and supervisory review requirements.