See audit from the Department of Housing and Urban Development (HUD), Inspector General for Audit, Philadelphia Regional Office, dated September 18, 2006, here.
Summary of what HUD found:
The Commonwealth did not ensure that HOME [HOME Investment Partnerships program] funds were disbursed and used in accordance with federal regulations. We reviewed project funds disbursed through the Commonwealth’s Affordable Housing and Preservation program, operating assistance grants awarded to community housing development organizations, and downpayment and closing cost assistance provided though the Commonwealth’s Single Family Regional Loan Fund. The Commonwealth did not always comply with federal regulations and/or its own requirements in its disbursements and and administration of HOME funds for various purposes. These problems occurred because it did not develop and document critical risk assessments and implement an adequate monitoring program to ensure that it properly administered the HOME program. As a result, HOME funds totaling $183,706 were used for ineligible expenses or activities and $527,060 in expenses were unsupported. The Commonwealth also accumulated more than $3.2 million in administrative funds that should have been used to improve its administration of its HOME program and to fund eligible HOME projects. Doing so would have enabled the Commonwealth’s HOME program to better meet its main goal of providing affordable housing for low-income households.
Wow! A waste of about $3.3 million in just one program! Note that the audit covered the time period from 2002 – 2005, just when Mark Warner was Governor of Virginia. If that much waste exists in one program, don’t you wonder what else is lurking out there?
I guess we really needed that tax hike!