Initiate appropriate administrative actions and debarments against parties, including the former grants manager and contractors, who contributed to the mismanagement of program funds.
2018-AT-1005 | May 29, 2018
The City of Margate, FL, Did Not Properly Administer Its Neighborhood Stabilization Program Grants 1 and 3 in Compliance With HUD Regulations
General Counsel
- Status2018-AT-1005-001-JOpenClosed
Community Planning and Development
- Status2018-AT-1005-001-AOpenClosed$457,192Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
Repay to the program from non-Federal funds the $457,192 ($380,526 $48,420 $28,246) in NSP funds spent for the construction, air conditioning, and engineering services in instances in which procurement activities were not adequately performed.
- Status2018-AT-1005-001-BOpenClosed$280,979Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
Repay to the program from non-Federal funds $280,979 in NSP funds spent for property 1012 and identify and repay any additional costs spent on this property, including maintenance costs and any program income generated.
- Status2018-AT-1005-001-COpenClosed$73,400Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
Repay to the program from non-Federal funds the $73,400 in NSP funds spent for mold and asbestos remediation work.
- Status2018-AT-1005-001-DOpenClosed$8,919Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
Provide documentation to support the $8,919 in NSP funds spent on rehabilitation costs or repay to the program from non-Federal funds.
- Status2018-AT-1005-001-EOpenClosed
Provide documentation to support a reconciliation between financial records and DRGR and report in HUD’s DRGR system the appropriate amount of program income generated from all NSP1 and NSP3 funds from the inception of the grants.
- Status2018-AT-1005-001-FOpenClosed
Provide documentation to support that all NSP properties are properly classified and recorded in HUD’s DRGR system.
- Status2018-AT-1005-001-GOpenClosed
Develop and implement policies and procedures to include but not be limited to oversight, effective internal controls, separation of duties, procurement, and overall administration of the program.
- Status2018-AT-1005-001-HOpenClosed$59,510Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
Conduct a review of the remaining 10 properties not reviewed during our audit to ensure compliance with HUD requirements and identify and repay costs related to ineligible or unsupported activities (see appendix C).
- Status2018-AT-1005-001-IOpenClosed
For Property 1504, provide documentation to support the recording in HUD’s DRGR system, the repayment of $144,004 in NSP funds and $1,120 in program income.
2018-FW-1801 | May 21, 2018
Final Civil Action: BSR Trust, LLC, Settled Allegations of Making False Claims Related to Section 8 Housing Assistance Payments
General Counsel
- Status2018-FW-1801-001-AOpenClosed$30,000Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
We recommend that HUD’s Office of General Counsel, Office of Program Enforcement, acknowledge that $30,000 in the settlement agreement represents an amount due HUD.
2018-FW-1004 | May 08, 2018
The City of Dallas, TX, HOME Investment Partnerships Program Was Not Always Administered in Accordance With Requirements
Community Planning and Development
- Status2018-FW-1004-001-AOpenClosed$1,322,280Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
We recommend that the Fort Worth Office of Community Planning and Development Director require the City to repay its HOME program from non-Federal funds $1,322,280, which it misspent reconstructing homes.
- Status2018-FW-1004-001-BOpenClosed
We recommend that the Fort Worth Office of Community Planning and Development Director require the City to ensure that staff responsible for environmental reviews understands and complies with environmental requirements.
- Status2018-FW-1004-001-COpenClosed
We recommend that the Fort Worth Office of Community Planning and Development Director require the City to hire a qualified entity to determine and correct deficiencies related to 13 reconstructed homes, including the structural integrity of the homes.
- Status2018-FW-1004-001-DOpenClosed
We recommend that the Fort Worth Office of Community Planning and Development Director require the City to provide a detailed plan for covering the cost of any potential warranty work needed on these 13 properties for the entire statutory warranty period.
- Status2018-FW-1004-001-EOpenClosed$7,777,688Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
We recommend that the Fort Worth Office of Community Planning and Development Director require the City to support or reduce its match contributions by $2,967,568 and review its HOME match contributions for the past 5 years for compliance with HOME regulations and report the results to the Fort Worth Office of Community Planning and Development.
- Status2018-FW-1004-001-FOpenClosed
We recommend that the Fort Worth Office of Community Planning and Development Director require the City to develop and adopt policies and procedures to address HOME match contribution requirements.
- Status2018-FW-1004-001-GOpenClosed
We recommend that the Fort Worth Office of Community Planning and Development Director require the City to ensure that the loan agreements are signed and valid legal instruments.
- Status2018-FW-1004-001-HOpenClosed
We recommend that the Fort Worth Office of Community Planning and Development Director require the City to develop policies and procedures, to include the review of all subcontractors in SAM.
- Status2018-FW-1004-001-IOpenClosed
We recommend that the Fort Worth Office of Community Planning and Development Director require the City to ensure that its staff understands and complies its policies and procedures including HOME income requirements.