The Providence Journal recently reported that Rhode Island Housing has been ordered to repay $1.1 million in federal grants because it has failed to document how those funds were spent at a Pawtucket homeless facility. From the article:
The regional office of the federal Department of Housing and Urban Development came down hard on Rhode Island Housing Tuesday and ordered that the agency pay back more than $1.1 million for failing to provide financial controls at Safe Haven, a homeless facility in Pawtucket that shut down this summer.
The Urban League of Rhode Island ran Safe Haven, but Rhode Island Housing was responsible for dispersing funds from the federal Continuum of Care program to the nonprofit facility.
HUD decided to seek the reimbursement of $1,157,573 after Rhode Island Housing “was unable to provide HUD with documentation and assurances that it had established such fiscal control and accounting procedures as may be necessary to assure the proper disbursal of, and accounting for grant funds …” wrote Robert D. Shumeyko, HUD’s regional director. “It is our conclusion that RIH is out of compliance with the terms of conditions set forth in the Grant Agreements governing these projects.”
The time period ran from Oct. 1, 2010, through Sept. 30, 2013.
Rhode Island Housing is barred from using federal funds to reimburse HUD, and the money must be repaid by Nov. 3, unless the housing agency can produce “verifiable evidence” to support the funds drawn from the federal grants.
To read the full report click here.
