The U. S. Department of Housing and Urban Development, Office of Inspector General, audited the Washington State Housing Finance Commission (the Commission) to determine whether the Commission established eligible grant projects, reported tax credit assistance program (TCAP) information into Recovery.gov accurately and completely, and paid eligible TCAP expenditures in accordance with American Recovery and Reinvestment Act of 2009 requirements.
The Commission complied with the applicable Recovery Act and HUD rules and regulations in establishing eligible grant projects, and in the reporting of TCAP information in FederalReporting.gov. However, the Commission did not always disburse TCAP funds in accordance with program requirements. The Commission reimbursed two project owners for ineligible permanent loan fees, appraisal fees and unsupported legal costs.
We recommended that HUD require the Commission to reimburse $170,036 to its U.S. Treasury line of credit from non-Federal funds for the ineligible expenditures. We also recommend HUD require the Commission to provide supporting documentation for $17,068 in unsupported costs or reimburse its U.S. Treasury line of credit from non-Federal funds. Further, we recommend that HUD require the Commission to establish and implement written policies and procedures for the review and approval of budgets and draw requests.