Finding 979613 (2023-001)

Emergency Safety and Security grants should be managed in the same manner as grants provided by the Department for unforeseeable or unpreventable emergenciesunder 24 C.F.R § 905.204. Therefore, PHAs have 1 year to obligate and 2 years to expend Emergency Safety and Security grant funds. Additional guidance from PIH notice 2023-10 The Housing Authority obligated the funds within time frame above however only spent approximately 50% of the obligated funds with the 24 months. The 2021 Emergancy CFP grant of approximately $2.3 million was obligated within 12 months however only approximately $1.96 million was expended withing the 24 month period resulting in $0.3 million being returned to HUD. Due to changes in staff, disagreements with contractors the obligated funds were not spent in time to meet the HUD compliance requirements. The Housing Authority was required to return the unspent funds after 24 months . Furture contracts should be monitored closely to ensure compliance with HUD guidelines to avoid returning significant portion of grants to HUD. Management agree with the findings see Corrective Action Plan (CAP)