Purpose

To determine the extent of implementation of the recommendations in our initial audit report, The Mitchell-Lama Program:  Awarding Housing Units and Maintaining Waiting Lists (Report 2014-N-3).

Background

Our initial audit report, which was issued July 29, 2015, examined whether the Mitchell-Lama-financed units were assigned to eligible persons in compliance with properly established lists. We found that applicants who were next in line for units in a specific development were not always offered and/or awarded a unit in the order they were listed. We observed inconsistencies in the methods used by HPD staff to place applicants on development waiting lists. Development officials often did not indicate who made notations (e.g., indicating applicants’ continued interest in Mitchell-Lama units) on the manually prepared lists or when those notations were made. We tested several notations and found they were unsupported and/or disputed by applicants. Further, HPD did not adequately monitor building managing agents, nor did they take corrective actions, when appropriate.

Key Finding

HPD officials made considerable progress addressing the problems we identified in the initial audit report; however, additional actions are still needed. Of the initial report’s eight audit recommendations, four were implemented, three were partially implemented, and one was not implemented.

Key Recommendation

Officials are given 30 days after the issuance of the follow-up report to provide information on any actions that are planned to address the unresolved issues discussed in this report.

Other Related Audit/Report of Interest
The Mitchell-Lama Program: Awarding Housing Units and Maintaining Waiting Lists (2014-N-3)