HUD Could Improve Its Controls Over the Disposition of Real Properties Assisted With Community Development Block Grant Funds

View Report

Date Issued

Friday, September 29, 2017

Submitting OIG

Department of Housing and Urban Development OIG

Other Participating OIGs

Department of Housing and Urban Development OIG

Agencies Reviewed/Investigated

Department of Housing and Urban Development

Components

Community Planning and Development

Community Development Block Grant

Report Number

2017-NY-0002

Report Type

Audit

Agency Wide

Yes

Number of Recommendations

Questioned Costs

$1,078,813

Open Recommendations

This report has 6 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use
2017-NY-0002-001-B	Yes	$0	$0
We recommend that the Deputy Assistant Secretary for Grant Programs develop a process to ensure that grantees properly report the addresses of assisted properties in IDIS and properly calculate and report program income from the disposition of these properties regularly.
2017-NY-0002-001-C	No	$0	$0
We recommend that the Deputy Assistant Secretary for Grant Programs instruct the Newark, NJ, field office to require Jersey City to provide documentation to show that a notice was provided to affected citizens as required or take action to advise affected citizens that they disposed of the property.
2017-NY-0002-001-D	Yes	$503,550	$0
We recommend that the Deputy Assistant Secretary for Grant Programs instruct the Newark, NJ, field office to require Jersey City to provide documentation to support the fair market value of the property at the time of disposition. If documentation cannot be provided, the grantee should be required to reimburse $503,550 to its CDBG line of credit from non-Federal funds.
2017-NY-0002-001-E	Yes	$575,263	$0
We recommend that the Deputy Assistant Secretary for Grant Programs instruct the Philadelphia, PA, field office to require Luzerne County to provide documentation to support the fair value of the property at the time of disposition. If documentation cannot be provided, the grantee should be required to reimburse $575,263 to its CDBG line of credit from non-Federal funds.
2017-NY-0002-001-F	Yes	$0	$0
We recommend that the Deputy Assistant Secretary for Grant Programs instruct the Philadelphia, PA, field office to require Luzerne County to reclassify program income already reported to the activity ID in IDIS that generated the income, ensuring that the $798,273 in program income is properly accounted for.
2017-NY-0002-001-I	Yes	$0	$0
We recommend that the Deputy Assistant Secretary for Grant Programs issue guidance to HUD staff and grantees to clarify the applicability of change of use requirements in cases where there is both a repayment from non-Federal funds and a voluntary grant reduction.