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Crime, Fraud, Waste, and Abuse
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The City of Buffalo Did Not Always Administer Its Community Development Block Grant Program in Accordance With HUD Requirements

We further recommend that the Director of HUD’s Buffalo Office of Community Planning and Development instruct the City to provide documentation to justify the $716,622 ($545,607 $24,069 $146,946) in unsupported clean and seal costs incurred so that HUD can make an eligibility determination. Any costs determined to be ineligible should be reimbursed from non-Federal funds.

The City of Buffalo Did Not Always Administer Its Community Development Block Grant Program in Accordance With HUD Requirements

We further recommend that the Director of HUD’s Buffalo Office of Community Planning and Development instruct the City to reimburse from non-Federal funds the $304,506 related to ineligible clean and seal code enforcement costs.

The City of Buffalo Did Not Always Administer Its Community Development Block Grant Program in Accordance With HUD Requirements

We recommend that the Director of HUD’s Buffalo Office of Community Planning and Development instruct the City to provide documentation to justify the $20,143,219 ($4,902,754 $15,240,465) in unsupported transactions recorded in the CDBG program income account. Any receipts determined to be unrecorded program income should be returned to the CDBG program, and any expenditures determined to be ineligible should be reimbursed from non-Federal funds.

The City of Buffalo Did Not Always Administer Its Community Development Block Grant Program in Accordance With HUD Requirements

We further recommend that the Director of HUD’s Buffalo Office of Community Planning and Development instruct the City to provide documentation to justify the $1,982,988 in unsupported costs associated with street improvement expenditures incurred between June 2007 and October 2009. Any unsupported costs determined to be ineligible should be reimbursed from non-Federal funds.

The City of Buffalo Did Not Always Administer Its Community Development Block Grant Program in Accordance With HUD Requirements

We recommend that the Director of HUD’s Buffalo Office of Community Planning and Development reimburse from non-Federal funds $162,923 ($134,711 $28,212) expended on ineligible costs pertaining to street improvement projects not done and a duplicate reimbursement.

Corporacion para el Fomento Economico de la Ciudad Capital, San Juan, Puerto Rico, Did Not Administer Its Independent Capital Fund in Accordance with HUD Requirements

Require the Municipality to obtain and submit all supporting documentation and HUD determine the eligibility and compliance with national objectives of the $631,195 the Corporation disbursed for the four loans. Any amounts determined ineligible must be reimbursed to the Block Grant program from nonfederal funds.

Corporacion para el Fomento Economico de la Ciudad Capital, San Juan, Puerto Rico, Did Not Administer Its Independent Capital Fund in Accordance with HUD Requirements

Require the Municipality to obtain and submit all supporting documentation and HUD determine the eligibility and propriety of $1,011,801 in administrative costs the Corporation charged to the Block Grant revolving fund. Any amounts determined ineligible must be reimbursed to the Block Grant program from nonfederal funds.

New York-based Grantee ESG-CV Program Fraud Risk Management Assessment

HUD OIG is auditing a New York-based grantee's Coronavirus, Aid, Relief, and Economic Security (CARES) Act, Emergency Solutions Grants (ESG-CV) program. The CARES Act provided nearly $4 billion in special ESG funds to grantees to prevent, prepare for, and respond to the coronavirus pandemic and supports activities, such as, rapid re-housing, homelessness prevention programs, and emergency shelters for people experiencing homelessness.

California-based Grantee ESG-CV Program Fraud Risk Management Assessment

HUD OIG is auditing a California-based grantee's Coronavirus, Aid, Relief, and Economic Security (CARES) Act, Emergency Solutions Grants (ESG-CV) program. The CARES Act provided nearly $4 billion in special ESG funds to grantees to prevent, prepare for, and respond to the coronavirus pandemic and supports activities, such as, rapid re-housing, homelessness prevention programs, and emergency shelters for people experiencing homelessness.

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