Inventory
info icon
Single family homes on the market. Updated weekly.Powered by Altos Research
735,718-296
30-yr Fixed Rate30-yr Fixed
info icon
30-Yr. Fixed Conforming. Updated hourly during market hours.
6.94%0.02
Mortgage

HUD-OIG: Richmond, California, fails to uphold housing program requirements

City should repay almost $1 million, OIG finds

After auditing the city of Richmond, California’s Neighborhood Stabilization Program, the U.S. Department of Housing and Urban Development Office of the Inspector General determined that the city was not following the requirements related to procurement and cost eligibility of NSP1.

The problem revolves around the city awarding contracts to developers that lacked the capacity and financial resources to administer the program. 

Then, it failed to monitor the rehabilitation progress or the quality of work performed by three developers.

As a direct result, HUD said, “The rehabilitation of some properties suffered significant delays, while the rehabilitation of other properties had not been completed after more than 3 years.”

Along with that, the city paid $691,005 for rehabilitation work that was not performed and other ineligible and unreasonable costs, and it did not ensure that NSP1 properties were sold to eligible homebuyers.

The HUD-OIG recommends these three actions:

  1. Richmond should repay the actual administrative costs charged or $223,085 for mismanaging three developers
  2. Richmond should repay $691,005 for ineligible or unreasonable costs and for work not performed. 
  3. HUD should review the remaining NSP1 activities and the $1.1 million NSP3 grant, along with requiring the city to reimburse the programs for any ineligible or unreasonable costs.

Most Popular Articles

Latest Articles

Lower mortgage rates attracting more homebuyers 

An often misguided premise I see on social media is that lower mortgage rates are doing nothing for housing demand. That’s ok — very few people are looking at the data without an agenda. However, the point of this tracker is to show you evidence that lower rates have already changed housing data. So, let’s […]

3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please