Finding Text
Criteria: 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
Condition: The Housing Authority obligated the funds within time frame above however only spent approximately 50% of the obligated funds with the 24 months.
Context: The 2021 Emergancy CFP grant of approximately $2.8 million was obligated within 12 months however only approximately $1.4 million was expended withing the 24 month period resulting in$1.4 million being returned to HUD.
Cause: Due to changes in staff, disagreements with contractors the obligated funds were not spent in time to meet the HUD compliance requirements.
Effect: The Housing Authority was required to return the unspent funds after 24 months .
Recommendations: Furture contracts should be monitored closely to ensure compliance with HUD guidelines to avoid returning significant portion of grants to HUD.