We recommend that the Director of the Fort Worth Office of Community Planning and Development require the City to develop and implement policies and procedures on documentation required to support draws.

We recommend that the Director of the Fort Worth Office of Community Planning and Development require the City to comply with requirements to obtain the required income documentation, including ensuring that employees know and apply the requirements.

We recommend that the Director of the Fort Worth Office of Community Planning and Development require the City to develop and implement policies and procedures to review source income documentation as required by the HOME regulations.

We recommend that the Director of the Fort Worth Office of Community Planning and Development require the City to develop and implement policies and procedures for documenting the results of its recertification procedures, including documenting the results of unpaid taxes, the resolution of CHDO audit findings, and the resolution of ineligible CHDO board members or employees because of a SAM search.

Put $417,113 in unspent NSP1 funds associated with three activities to better use by reprogramming the funds to other subrecipients using an appropriate method or return the funds to HUD.

Support or reimburse its NSP1 grant $1,300,000 from non-Federal funds for the unsupported reallocation of grant funds.

Establish and implement a written policy and procedures to recapture and reallocate unused NSP funds in a timely manner.

Support or reimburse the appropriate NSP grant $1,186,105 from non-Federal funds for the unsupported subrecipient and administrative expenditures.

Update its records retention policy to meet HUD’s records retention requirements for supporting documentation for Federal program expenses, including salaries.

Update the NSP program income information in HUD’s grant tracking system and quarterly performance reports and reconcile with the Department’s records.

Establish and implement written procedures and provide adequate training to staff associated with administering the NSP grant to help ensure accurate reporting of program income.

Develop and implement a remediation plan for the six NSP activities to show that the national objectives have been met as required to support $11,916,072 in program funds drawn or reimburse its program from non-Federal funds.

Work with the Department so that it plans properly to ensure that the six activities identified in this report meet a national objective thereby avoiding extended project delays.

Review the Department’s remaining NSP grant expenditures before its drawdowns to ensure that the expenditures are eligible and adequately supported.

We recommend that HUD’s Deputy Assistant Secretary for Grant Programs require the State to provide documentation to support the appraised fair market values of the 14 properties sampled to ensure that $5,920,097 in settlement costs was supported. This recommendation includes but is not limited to providing support to show that appraisals contained accurate and verified information for the subject and comparable properties, time adjustments were supported, and other adjustments were supported. If support cannot be provided, the State should reimburse the unsupported costs from non-Federal funds.

We recommend that HUD’s Deputy Assistant Secretary for Grant Programs require the State to provide documentation to support the appraised fair market values of the 942 other properties included in our sampling universe to ensure that $361,465,173 in settlement costs was supported. This recommendation includes but is not limited to providing support to show that appraisals contained accurate and verified information for the subject and comparable properties, time adjustments were supported, and other adjustments were supported. If support cannot be provided, the State should reimburse the unsupported costs from non-Federal funds.

We recommend that HUD’s Deputy Assistant Secretary for Grant Programs require the State to provide documentation to support the appraised fair market values of any other properties purchased under the program since January 2016 that relied upon appraisals conducted by the contractors discussed in this report to ensure that settlement costs for those properties were supported. If support cannot be provided, the State should reimburse the unsupported costs from non-Federal funds.

We recommend that HUD’s Deputy Assistant Secretary for Grant Programs require the State to strengthen controls over the property valuation process for its program to ensure that up to $93,350,616 not yet disbursed is put to better use. This recommendation includes but is not limited to implementing a process to review the appraisal and quality control work to ensure that appraised fair market values are supported and that quality control reviews are performed as required by Federal, State, and industry standards and to take appropriate action for cases in which the work does not comply with requirements.

We recommend that HUD’s Deputy Assistant Secretary for Grant Programs require the State to provide documentation to show that $3,119,209 paid for appraisals and poststorm addenda performed by its contractor was reasonable, supported, and for services that were performed in accordance with applicable requirements or reimburse any unsupported costs from non-Federal funds.

We recommend that HUD’s Deputy Assistant Secretary for Grant Programs require the State to provide documentation to show that $156,940 paid for sales brochures, economic land analysis studies, and consultant fees was reasonable, necessary, supported, and for services that were performed in accordance with applicable requirements or reimburse any unsupported costs from non-Federal funds.