Inspection of HUD's Recapture of Unspent Pre-2005 Disaster Recovery Grant Funds   [open pdf - 123KB]

"The Office of Inspector General, Inspections and Evaluations Division, conducts independent, objective examinations of U.S. Department of Housing and Urban Development (HUD) activities, programs, operations, and organizational issues. We performed an inspection to determine whether HUD had appropriately recaptured unspent funds awarded from the more than $5.3 billion in Community Development Block Grant (CDBG) Disaster Recovery funding appropriated before 2005. According to HUD data, as of August 2008, grant awards totaling $4.7 billion had no unspent funds; 121 grant awards had unspent funds, of which HUD recaptured or deobligated more than $17.5 million. We obtained an overview of the Disaster Recovery grant program through discussions with HUD Headquarters Office of Community Planning and Development (CPD). We queried and analyzed pre-2005 disaster related data from CPD's automated Disaster Recovery Grant Reporting (DRGR) system. We selected 11 of the 121 grants in different parts of the country to review HUD's process for recapturing unspent funds. We obtained and reviewed the grant files and discussed the grants with cognizant HUD managers and field staff."

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