Audit 8519

Criteria - Under the Period of Performance compliance requirement for the Public Housing Capital Fund Program (CFP) (Assistance Listing Number 14.872), unless an extension is approved by HUD, an Authority must obligate at least 90 percent of each Capital Fund grant, including formula grants, Replacement Housing Factor grants (RHF), natural disaster, and lead-based paint grants within 24 months of the funds becoming available to the Authority for obligation. For emergency grants, safety and security grants and safety and security-carbon monoxide grants, the Authority must obligate at least 90 percent within twelve months of the funds becoming available. The funds become available when the HUD executes the ACC Amendment (24 CPR section 905.306). Condition - The Authority did not properly obligate its CFP grant within the required deadline. Cause - Grant NY01P062501-18 (CFP 2018) obligation end date was May 28, 2022 but the Authority did not obligate 90 percent until January 13, 2023. Effect - The Authority did not comply with the Period of Performance requirement. Questioned Costs - None identified. Recommendation - We recommend the Authority review all compliance requirements and HUD notifications for all new funding sources. Specifically, the Authority should familiarize itself with the requirements as explicitly written in the compliance supplement for each funding source which can be obtained from www.whitehouse.gov. Management's Response - (a) Comments on the Findings and Recommendations - The Authority agrees with the finding. The Authority also agrees with the recommendation. Please see below for additional comments and action taken. (b) Action Taken - The Authority also agrees with the recommendation and will review all compliance requirements and HUD notifications for all new funding sources. ( c) Planned Implementation Date - The Authority expects to complete the corrective action by March 31, 2024.

Criteria - Under the Period of Performance compliance requirement for the Public Housing Capital Fund Program (CFP) (Assistance Listing Number 14.872), unless an extension is approved by HUD, an Authority must obligate at least 90 percent of each Capital Fund grant, including formula grants, Replacement Housing Factor grants (RHF), natural disaster, and lead-based paint grants within 24 months of the funds becoming available to the Authority for obligation. For emergency grants, safety and security grants and safety and security-carbon monoxide grants, the Authority must obligate at least 90 percent within twelve months of the funds becoming available. The funds become available when the HUD executes the ACC Amendment (24 CPR section 905.306). Condition - The Authority did not properly obligate its CFP grant within the required deadline. Cause - Grant NY01P062501-18 (CFP 2018) obligation end date was May 28, 2022 but the Authority did not obligate 90 percent until January 13, 2023. Effect - The Authority did not comply with the Period of Performance requirement. Questioned Costs - None identified. Recommendation - We recommend the Authority review all compliance requirements and HUD notifications for all new funding sources. Specifically, the Authority should familiarize itself with the requirements as explicitly written in the compliance supplement for each funding source which can be obtained from www.whitehouse.gov. Management's Response - (a) Comments on the Findings and Recommendations - The Authority agrees with the finding. The Authority also agrees with the recommendation. Please see below for additional comments and action taken. (b) Action Taken - The Authority also agrees with the recommendation and will review all compliance requirements and HUD notifications for all new funding sources. ( c) Planned Implementation Date - The Authority expects to complete the corrective action by March 31, 2024.