Report To The Utah Legislature - A Performance Audit Of The Division Of Housing And Community Development - 2012 Page 25
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33Chapter III
Misunderstanding of HCD
Programs Has Led to Confusion
Misunderstanding among community partners of the use of both
federal Neighborhood Stabilization Program (NSP) funds and
funding for a training program called Bridges Out of Poverty has led
to some confusion and dissatisfaction with the Division of Housing
and Community Development (HCD). Despite these concerns, the
first NSP funds released in Utah (NSP1) were awarded appropriately
and have been used efficiently. The third round of funding (NSP3)
was not awarded through a request for proposal (RFP) process
because the federal government did not require use of RFPs. HCD
followed the required guidelines for the release of the funds for an
appropriate project. Utah did not receive any NSP2 monies. We
found no basis for concern with HCD’s use of either of the NSP funds
entrusted to them.
Finally, the Bridges Out of Poverty training program has cost the
state minimal amounts, and is offered on a voluntary basis to
interested parties. We found no cause for concern in these areas.
HCD’s Awarding of NSP1 Funds
Was Appropriate and Efficient
The Neighborhood Stabilization Program 1 (NSP1) grant money
awarded by the federal government ($19.6 million, the smallest
amount awarded to individual states) has been used appropriately and
The NSP1 RFP was
efficiently in Utah. Despite some concern with HCD’s method of
conducted according
to the rules, and
awarding the money to a non-profit organization, the NSP1 RFP
appears to have
process appears to have been appropriate and fair. In addition, the
resulted in an efficient
federal government’s charge to states was for the funds to be used
process.
quickly. The Federal Register states that “one of the most critical NSP
provisions is . . . that any grantee receiving a grant ‘shall, not later than
18 months after the receipt . . . use such amounts to purchase and
redevelop . . . residential properties.’” In compliance with this federal
requirement, Utah was among the first in the nation to put the
majority of these critical funds to use.
Office of the Utah Legislative Auditor General
15
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