Objective

To assess the extent of implementation of the four recommendations included in our initial audit report, Homeless Housing and Assistance Program – Project Selection and Maintenance (Report 2018-S-4).

About the Program

The Homeless Housing and Assistance Program (HHAP), created in 1983 under the Social Services Law, provides funding for the establishment of projects for the homeless. HHAP is overseen by the Homeless Housing and Assistance Corporation (HHAC), and administered and staffed by the Office of Temporary and Disability Assistance pursuant to its service agreement with HHAC. Through the Homeless Housing and Assistance Fund, HHAC provides State financial assistance in the form of grants, loans, or loan guarantees to acquire, construct, or rehabilitate supportive housing for the homeless. HHAC’s providers are required to provide supportive services to these clients to assist in maintaining their residence. HHAP performs monitoring inspections to ensure the projects are adequately maintained. As an additional means of monitoring, HHAC requires all project providers to submit detailed annual reports, which include information related to budget, finances, milestones, proof of insurance and tax payments, and various other fiscal and program information. From the inception of the program in 1983 through State Fiscal Year 2019-20, the State appropriated $1,226,500,000 for the development of 22,128 units of housing. As of June 12, 2020, there were 342 active provider contracts.

Our initial audit report, issued on January 10, 2019 and covering the period April 1, 2015 through September 14, 2018, examined whether HHAP was selecting feasible projects to provide permanent supportive housing to the homeless and if its projects were being properly maintained. We found that, of the 51 projects that were awarded funding during the three-year period ending March 31, 2016, all but one were operational or in the pre-construction or construction phase within two to four years of being awarded funding. We also identified several areas for improvement. For instance, for 326 projects that were active during the period April 2015 through March 2018, we determined that HHAP had conducted the required inspections but not all were done timely: for about 10 percent (32) of the projects, inspections were past due, ranging from one to nine months. Further, 46 annual reports (14 percent) were delinquent, ranging from 94 to 980 days overdue. Lastly, HHAP officials disclosed that their database was not always reliable and, in some instances, query results were not accurate. In July 2016, officials began seeking solutions to replace this system.

Key Finding

HHAP officials have made progress in addressing the problems we identified in the initial audit report; however, additional improvements are needed. Of the initial report’s four recommendations, two were implemented and two were partially 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.