The Puerto Rico Department of Housing, San Juan, PR, Did Not Properly Administer Its Multifamily Special Escrow Funds

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Date Issued

Thursday, March 2, 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

Report Number

2017-AT-1003

Report Type

Audit

Location

San Juan, PR
United States

Number of Recommendations

Questioned Costs

$12,000,000

Open Recommendations

This report has 6 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use
2017-AT-1003-001-A	Yes	$0	$7,984,429
Submit a plan showing how it will use the $7,984,429 in unspent escrow funds to meet program objectives and increase the supply of low- and moderate-income housing for the residents of Puerto Rico, including a schedule HUD can track to ensure the expenditure.
2017-AT-1003-001-B	Yes	$2,432,271	$0
Submit supporting documentation so HUD can reevaluate the feasibility of the three activities and determine the eligibility of the $2,432,271 in escrow funds already disbursed. If HUD determines that an activity has been canceled or is not feasible, the Department must reimburse the escrow account from non-Federal funds.
2017-AT-1003-001-C	No	$0	$0
Submit a plan showing how it will proceed regarding the Yabucoa, Juncos, and Barceloneta housing projects, including a schedule that HUD can track to ensure their completion.
2017-AT-1003-001-D	No	$2,176,733	$0
Submit supporting documentation showing the reasonableness and allowability of $2,176,733 disbursed or reimburse its escrow account from non-Federal funds.
2017-AT-1003-001-E	No	$0	$0
Develop and implement written policies detailing procedures and responsibilities related to program administration and monitoring of the escrow program.
2017-AT-1003-002-B	No	$0	$0
Submit required certifications and supporting documentation showing that residents of escrow-funded activities met the established income limit requirements. Any amounts determined ineligible must be reimbursed to the escrow account from non-Federal funds.