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NOLA Mismanaging HUD Funds

first_img HUD’s Office of Inspector General (OIG) released the results of its audit of the City of New Orleans’ HOME Investment Partnerships program, which reveals that the city failed to protect more than $7.5 million in HOME funds disbursed.The Inspector General’s investigation of the low-income housing program was launched in response to a “citizen complaint.” According to the audit report, the complaint had merit as New Orleans did not properly monitor or administer its HOME program.The OIG discovered that for the 13 projects investigated, the city “did not ensure that four projects had regulatory agreements, preventing the city from enforcing the affordability and other program requirements.”As for the remaining nine projects, the city failed to confirm that rents remained within rent limits, it performed initial tenant income eligibility certifications, and it conducted property inspections and onsite monitoring visits, according to the audit.In addition, the audit noted that the city did not track or accurately report unit vacancies and properly report and use its program income. These conditions occurred because New Orleans did not, “follow the program requirements, lacked supervisory management of staff, did not have adequate written policies and procedures, and had poor record-keeping practices.”This mismanagement of funds has caused the city to fail to detect $82,800 in rent overpayments; ensure that affordable housing was available and offered to low-income households, and ensure that programs participants lived in decent, safe, and sanitary housing, according to the report.The OIG recommends that HUD’s Director of the New Orleans Office of Community Planning and Development require the city to repay more than $1.8 million, support or repay more than $5.8 million, and revise its written procedures and management controls. Servicers Navigate the Post-Pandemic World 2 days ago  Print This Post in Daily Dose, Featured, News About Author: Nicole Casperson Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Share Save Sign up for DS News Daily The Best Markets For Residential Property Investors 2 days ago Home / Daily Dose / NOLA Mismanaging HUD Funds September 8, 2017 1,160 Views NOLA Mismanaging HUD Funds Demand Propels Home Prices Upward 2 days agocenter_img The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Nicole Casperson is the Associate Editor of DS News and MReport. She graduated from Texas Tech University where she received her M.A. in Mass Communications and her B.A. in Journalism. Casperson previously worked as a graduate teaching instructor at Texas Tech’s College of Media and Communications. Her thesis will be published by the International Communication Association this fall. To contact Casperson, e-mail: [email protected] Tagged with: HOUSING HUD mortgage NOLA The Week Ahead: Nearing the Forbearance Exit 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago HOUSING HUD mortgage NOLA 2017-09-08 Nicole Casperson Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Previous: The People vs. Equifax Next: Cleveland Federal Reserve: Be Careful with Rate Hikes Related Articles Subscribelast_img read more