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In accordance with our goal to review and ensure the proper administration of Neighborhood Stabilization Program (NSP) funds provided under the Housing and Economic Recovery Act of 2008 (HERA), we conducted a capacity review of the City of Meriden’s (City) operations. The City has responsibility for administering the State’s NSP. Our objective was to determine whether the City had the necessary capacity to effectively administer the State’s NSP funds provided through HERA.

According to the contract agreement between the City and Department, failure to meet any of the agreed-upon performance standards may result in the recapture of funds by the Department. The City should discuss the expected results with the Department and obtain an approved amendment to its local action plan. We provided a draft report to the City on January 14, 2010, and the City provided written comments on January 26, 2010, and agreed to correct the conditions raised by the review.

We recommend that the HUD Hartford, CT, Director of Community Planning and Development require the City to obtain an approved amendment to its NSP local action plan from the Department to reduce the number properties acquired, rehabilitated, and resold.