HomeMy WebLinkAbout990423.tiff ti ` D.r esti. . , OF COLORADO
DIVISION OF HOUSING tarn ,.r_, 99 f i 52 Department of Local Affairsozo
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Tom Hart, Director
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February 25, 1999 Bill Owens
Governor
Bob Brooks
The Honorable Dale Hall, Chairman
Executive Director
Weld County Board of Commissioners
P.O. Box 758
Greeley, CO 80632
Re: CDBG Contract #97-759- Downpayment Assistance Program
Dear Commissioner Hall:
On February 5, 1999, Rachel Goodnough conducted a monitoring of the Weld County Downpayment Assistance
Program. She conducted an administrative review of the program, interviewed program staff and examined three
individual project files. The following areas of compliance were included in the monitoring:
• Project Start Up, Eligibility of Activities, and National Objectives
• Limited Reviews of Financial Management, Environmental, Civil Rights and Labor Standards
• Limited Reviews of Real Property Acquisition, One for One Replacement and Relocation
Assistance
The accounting records were sufficient to show the use of CDBG funds for the contracted purpose. Fifty-six percent
of the contract funds were not utilized.The twelve month contract was executed on August 1, 1997 and was to expire
on June 30, 1998. A request for an extention was submitted and granted through November 30, 1998. During this
period of time,twelve loans were issued out of the twenty-eight contracted for during the fifteen month contract period.
ADMINISTRATIVE MONITORING CONCERN: No written grievance procedure is in place for applicants of the
Downpayment Assistance program.
ACTION TO BE TAKEN:If Weld County wants to continue this program and expects to request additional funding from
the Division of Housing a written grievance procedure must be established and approved by the governing board.A
copy of the approved procedure must be submitted to the Division of Housing at the time of the request for additional
funding and must be included in the application package for future applicants to the program.
INDIVIDUAL CLIENT FILES MONITORING FINDINGS:Rachel reviewed three individual client loan files: S.Wetch,
M. Finn and J. Berg. None of the files contained the information necessary to determine that the clients were
income eligible to receive these funds.This information must be available for monitoring.Without the proof
of income eligibility it may be necessary for state staff to determine that these loans were not a proper use
of the CDBG funds and request that the funds be paid back to the State.
Below is a list of the additional information which was missing from the individual files checked. These additional
requirements must be met or the information must be available to state staff within the next thrity days.
File#1 -S.Wetch-Findings
1) There was no evidence that lead-based paint requirements were met. There should be a signed acceptance
by the applicant that they have received and they understand the issues surrounding lead based paint in the
home.
2) There was no evidence present in the file to show that the deed was recorded.
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Page 2-Mr. Dale Hill
File#2-M. Finn -Findings
1) No way to determine how income was verified. No dated proof of income present in file.1995 and 1996 tax
returns are not adequate sources of income eligibility for a loan issued in 1998.
2) The file showed that after the HQS inspection, certain problems arose which required repair.There was no
indication in the file that these problems were resolved prior to(or within 6 months of)occupancy.
3) The promissory note was not signed by the borrower- rendering the loan invalid.
4) The deed of trust was not signed, attested, or recorded
5) There was no indication that lead based paint requirements were met
File#3 J. Berg -Findings
1) There was no verification that lead paint requirements were met
2) Truth in lending form was not signed by the borrower
3) The file did not contain a signed deed of trust
4) There was no verification that deed was recorded
5) There was no indication that this borrower participated in homeownership counseling
6) There was no appraisal present in the file
ACTIONS TO BE TAKEN:In view of the severity of the income qualification findings and the other missing information
in the checked files it will be necessary for the Division of Housing Staff to return for an additional monitoring. This
monitoring will be scheduled in approximately thirty days from the date of this letter. It is suggested that staff review
the remaining nine loan files to ensure that the required information is contained in all the individual loan files.The
next monitoring will cover all loan files, not just the three previously monitored.Attached to this letter is a check list
which identifies all the individual client information required to be available at the time of monitoring.
If you have any questions concerning this monitoring letter and the required actions to be taken,please contact KSue
Anderson at (303)866-4650 as Rachel Goodnough will be leaving our staff on March 5, 1999. Thank you for the
cooperation shown Rachel during her monitoring visit.
Sincerely,
dtek�GKSue Anderson
Program Administrator
cc: Tom Teixeira, Executive Director, High Plains Housing Dev. Corp.
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