Follow-Up on Downtown Affordable Housing Density Bonus Program

Executive Summary

In October 2011, the Inspector General’s Office (IGO) published an audit of processes related to the Downtown Affordable Housing Density Bonus program. Based upon the results of the original audit, we determined that internal controls were not adequate to ensure a) proper review of development projects prior to the issuance of building permits and b) adequate training of individuals with core responsibilities respecting the collection of payments. However, we did find the internal controls ensuring the collection of density bonus payments related to affordable housing were adequate. We have summarized the audit findings and recommendations. To determine the status of the recommended actions, in May 2012 we inquired with DHED. Based on the follow-up responses, the IGO concludes that the City has adequately addressed the findings of the original audit with respect to future projects.