However, we found that the Division of Housing does not have a system in place to gather data and analyze it to determine if its technical assistance efforts have accomplished desired outcomes. We recommend that the Division develop a method for gathering information on its technical assistance efforts and analyze the impact of such efforts to ensure results are adequate and meet the needs of the Division and its customers. The Division has improved its methods for gathering and analyzing data related to technical assistance by more explicitly describing activities in the monthly report. The Community Housing and Assistance Section recently developed a risk-based approach to monitoring recipients of state and federal funds to ensure the funds are spent appropriately. In light of the increasing number of housing projects, it is important to ensure that the Division focuses its monitoring efforts on recipients who have the greatest risk of noncompliance.
Several problems are present with the current risk-based monitoring program.
First, the concept of the program was not clearly defined and communicated to Division staff. Second the program bases the frequency of monitoring on recipients' past performance, but the Division does not have a reliable method for documenting recipients' past performance. Furthermore, formal monitoring typically occurs during the last months of a project when the majority of the funds have been spent. Therefore, the Division has little leverage to influence a recipient to correct identified problems. In addition, HUD requires that the Division monitor certain types of projects after completion to ensure that the housing remains safe and affordable.