Will have to finish reading this tomorrow but from what I can gather so far , "Desire" was a company that provided low income housing in New OrleansO which relied on Federal funding (HUD). The city of NO was responsible for monitoring Desire. It was found that Desire ...
1- Failed to Adequately Administer HUD Funds
2- Expended Approximately $1.1 Million in Grant Funds without Benefiting the People Intended
3- Misused $533,604 of Program Income
It was also found that the City provided inadequate oversight of Desire. It was found that ....
. The City could not provide documentation that it reviewed Desire’s performance annually as required by HUD.16 Further, when the City determined a problem existed, it did not take sufficient action to correct the problem or limit its loss. The City did not properly monitor Desire. For instance, it appears the City knew of the lack of progress on the rehabilitation of Bayou Apartments but was unsuccessful at resolving the problems it noted. According Accordingto February 2002 correspondence, City officials knew Desire had been “struggling for several years with the redevelopment of” Bayou Apartments. According to documentation, Desire had not performed any work since at least June 2001, 8 months earlier. Considering the consistency of concerns throughout the grant, the City should have terminated Bayou Apartments sooner and reviewed all of its operations to determine if the causes were systemic. In another example, at Liberty Terrace, the City knew there was a funding flaw17 with Liberty Terrace, but took no action to reduce the funding flaw. To the contrary, the City knew the actions taken by it and Desire would only increase the funding flaw. Irrespective of Desire’s actions, the City’s inadequate oversight of Desire contributed to the delays and problems cited in both Findings 2 and 3. As the participating jurisdiction, the City is responsible for managing the day-to-day operations of its HOME Program, ensuring that HOME funds are used in accordance with all program requirements and written agreements, and taking appropriate action when performance problems arise. Further, use of Desire did not relieve the City of this responsibility.
Oh, you're good! Its going to take me a while just to digest your digest! That, and all that googling I'm trying to learn will keep me busy for a few days.....