Oregon misplaced $426 million in federal pandemic funds for emergency rental assistance
Oregon Housing Agency Loses Track of $426 Million in Federal Funds for Emergency Rental Assistance
The state of Oregon’s housing agency has come under scrutiny after a new state audit revealed that it lost track of $426 million in federal pandemic-era funds for emergency rental assistance (ERA). The audit, released on Thursday by the Oregon Audits Division, highlighted the inability of the Oregon Housing and Community Services (OHCS) to account for the millions of dollars designated for the Oregon Emergency Rental Assistance Program.
“The agency has no way of knowing how much of the $426 million went to eligible Oregon recipients and how much was sent to landlords, renters, and non-eligible recipients in error,”
The audit also uncovered other concerning issues within the OHCS. The agency was unable to quantify the amount of ERA funds distributed or the number of applicants who received funding. Additionally, the auditors found that the agency had deficient financial accounting controls, poor administrative practices, and inadequate program staffing. They also criticized the agency’s lack of oversight on fraud, eligibility, and financial controls.
Based on their review of randomly selected payments, auditors discovered a 30 percent error rate, estimating that erroneous payouts could total $11 million. They also found inaccuracies and inconsistencies between the OHCS database, U.S. Treasury reports, and a contractor database. The audit further highlighted the department’s failure to meet federal guidelines in spending the funds and accurately track administrative costs.
The ERA funds, totaling $46.5 billion, were provided in two installments: “ERA 1″ from Congress’ December 2020 COVID-19 relief package and “ERA 2” from Congress’ March 2021 relief package. Despite an eviction moratorium, an estimated 176,000 Oregon renter households were at risk of eviction in September 2020.
While OHCS implemented an equity-based system for distributing funds, it neglected to ensure compliance with federal guidelines. The department took steps to prioritize certain demographics, such as Latinos, farmworkers, individuals with disabilities, and those experiencing homelessness or housing instability due to COVID-19.
With the ERA Program now closed, OHCS faces the challenge of addressing homelessness, as mandated by Governor Tina Kotek. Auditors expressed concern about the department’s carryover of practices from the ERA Program to the Oregon Eviction Diversion and Prevention Program.
In response to the audit, OHCS executive director Andrea Bell defended the department’s work, citing the pressures and demands of the pandemic. While she agreed to most of the recommendations, she denied two concerning additional oversight measures.
CLICK HERE TO GET THE DAILYWIRE+ APP
How does the agency’s inability to track the $426 million in federal funds impact its ability to ensure that the funds were distributed to eligible recipients?
Compliance with federal guidance.
The loss of $426 million in federal funds raises serious concerns about the effectiveness and transparency of the Oregon Housing and Community Services. With the ongoing economic challenges caused by the COVID-19 pandemic, emergency rental assistance is crucial for supporting struggling individuals and families. However, the audit’s findings suggest that the OHCS has failed in its responsibility to efficiently and effectively distribute these funds.
One of the most alarming discoveries from the audit is the agency’s inability to track where the $426 million went. This lack of accountability is deeply troubling, as it raises questions about the agency’s ability to ensure that the funds were distributed to eligible recipients. Without proper tracking and oversight measures, there is a significant risk of funds being misused, sent to non-eligible individuals, or lost entirely.
Furthermore, the audit also revealed deficiencies in the OHCS’s financial accounting controls, administrative practices, and program staffing. These shortcomings further undermine the agency’s ability to carry out its duties effectively. A lack of proper financial controls not only increases the risk of mismanagement and fraud but also makes it impossible to accurately assess the impact and reach of the emergency rental assistance program.
The auditors’ criticism of the agency’s inadequate oversight on fraud, eligibility, and compliance issues is particularly concerning. With such a large amount of federal funds at stake, robust oversight mechanisms are crucial to prevent potential abuse and ensure that the funds are allocated to those who are truly in need. The lack of oversight also undermines public trust in the agency and the government’s ability to effectively manage and distribute emergency funds.
The OHCS must take immediate action to address the issues highlighted in the audit. This should include implementing stronger financial controls, improving administrative practices, and increasing program staffing to enhance the agency’s capacity to properly manage and distribute funds. Additionally, the agency must develop comprehensive oversight mechanisms to prevent fraud, validate eligibility, and ensure compliance with federal guidelines.
Furthermore, steps should be taken to enhance transparency and accountability. The agency must establish a system to accurately track the distribution of funds, document the number of applicants receiving assistance, and provide regular updates to the public and relevant stakeholders. This will help rebuild public trust and ensure that the emergency rental assistance program operates with the utmost integrity.
In conclusion, the Oregon Housing and Community Services’ loss of $426 million in federal funds for emergency rental assistance is a grave concern. The agency’s inability to track and account for the funds raises questions about its ability to effectively manage and distribute financial aid to those in need. Urgent action must be taken to rectify the deficiencies highlighted in the audit, strengthen financial controls, and improve oversight to restore public confidence in the agency’s ability to handle emergency funds responsibly. Only through transparent and accountable management can the Oregon Housing and Community Services regain the trust of the public and fulfill its mission to support vulnerable populations during times of crisis.
" Conservative News Daily does not always share or support the views and opinions expressed here; they are just those of the writer."
*As an Amazon Associate I earn from qualifying purchases
Now loading...