Report To The Utah Legislature - A Performance Audit Of The Division Of Housing And Community Development - 2012 Page 11
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33Chapter I
Introduction
Some operations of the Division of Housing and Community
Development (HCD or division), Utah’s focal point for low-income
housing development, have raised concerns over the last few years.
Much of the concern arises from the division’s change in its
Concerns have arisen
operational model from that of a direct fund provider to that of a loan
because of changes in
HCD’s operating plan.
provider taking a greater interest in the way funds are used. Along
with this change is an increase in the division’s involvement in site
development and fund leveraging.
Primary concerns include HCD’s decision to purchase property in
South Salt Lake, its handling of federal Neighborhood Stabilization
Program (NSP) money, and other governance issues. In these
concerns, we found that the division acted appropriately under their
board’s assumption that statute allows direct involvement in land
acquisition. Current statute speaks to how and where funds should be
spent, but is silent on the mechanism for expending the funds. While
the division has been innovative in its interpretation of laws and public
leveraging, its actions have alienated some organizations in the low-
income housing community. We recommend that HCD establish
guidelines to ensure its own actions, not just those of its community
partners, align with the legislative intent of leveraging money.
HCD’s Primary Mission Is to
Provide Low-Income Housing
HCD is a division of the Department of Community and Culture
(DCC), and provides a number of functions focusing on the
HCD runs a number of
programs intended to
development of low-income housing. HCD’s mission statement
fulfill its mission to
charges it
improve and preserve
housing in Utah.
To be a catalyst for creating, improving and preserving
housing, community infrastructure, facilities, services and
economic development that will enhance the quality of life
for the people of Utah.
Office of the Utah Legislative Auditor General
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