Finding Text
Finding Number: 2024-006 Assistance Listing Number and Title: AL # 14.251 Economic Development Initiative, Community Project Funding, and Miscellaneous Grants Federal Award Identification Number / Year: B-22-CP-OH-0726 Federal Agency: U.S. Department Of Housing And Urban Development Compliance Requirement: Special Tests and Provisions Pass-Through Entity: N/A Repeat Finding from Prior Audit? No Prior Audit Finding Number: N/A 24 CFR 75 establishes the requirements to be followed to ensure the objectives of Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u) (Section 3) are met. The purpose of Section 3 is to ensure that economic opportunities, most importantly employment, generated by certain HUD financial assistance shall be directed to low- and very low-income persons, particularly those who are recipients of government assistance for housing or residents of the community in which the Federal assistance is Section 3 projects means housing rehabilitation, housing construction, and other public construction projects assisted under HUD programs that provide housing and community development financial assistance when the total amount of assistance to the project exceeds a threshold of $200,000. Consistent with existing Federal, state, and local laws and regulations, PHAs and other recipients of public housing financial assistance, and their contractors and subcontractors, must make their best efforts to award contracts and subcontracts to business concerns that provide economic opportunities to Section 3 workers. Grant Agreement No. B-22-CP-OH-0726 Article IV General Federal Requirements (M) states the grantee must comply with Section 3 of the Housing and Urban Development Act of 1968 (Section 3), 12 USC 1701u, and HUD's regulations at 24 CFR part 75 as applicable, including reporting requirements in 24 CFR 75.25. The County did not establish any policies/procedures related to Section 3. Further, The County did not include Section 3 accomplishments in their semi-annual performance reports submitted in Disaster Recovery Grant Reporting System (DRGR).The failure to submit Section 3 accomplishments on semi-annual performance reports was due to insufficient controls and could result in action taken by the grantor. Additional controls should be implemented to help ensure the County is adhering to Section 3 guidelines and submitting the required Section 3 accomplishments in their semi-annual performance reports submitted in DRGR.