Finding Text
Noncompliance with Special Tests and Provisions (Public Housing Capital Fund CFDA 14.872)
Criteria: Federal Code of Regulations requires the Authority to have an environmental review performed for any project before the Authority may acquire, rehabilitate, convert, lease, repair, or construct property, or commit HUD funds at an assisted project. Condition: During the year, the Authority had an environmental review performed by having a determination letter issued by local county inspections and zoning stating that the plan scope of work would not have any significant environmental impact. This determination letter was dated June 15, 2023. The Authority had completed the installation of mini-split HVAC units totaling $134,626 before the determination letter was issued. The cost of the installation was paid for on May 11, 2023.
Questioned
Costs: None.
Effect: The Authority did not properly comply with the program requirements performing an environmental review before funds were committed.
Cause: The Authority did not have an adequate understanding of the Capital Fund Program requirements as related to environmental reviews.
Recommendation: The Authority’s staff should familiarize themselves with Capital Fund Program compliance requirements.
Management
Response: Management will ensure that future environmental reviews are performed for planned scope of work before program funds are obligated