Affordable Housing Corporation
Affordable Home Ownership Development Program (Follow-Up Review) The affordable home ownership development program is intended to promote home ownership for persons of low and moderate income. Under the program, grants are either used to help build and rehabilitate housing, or are awarded to prospective homebuyers who would otherwise be unable to purchase a home. In our prior audit report 95-S-9, we examined how program funds were awarded to prospective homebuyers and, using industry recognized mortgage affordability ratios, determined that most of the grant recipients we sampled could have afforded larger mortgages and did not need a program grant to finance the purchase of their home. We also found that the size of the grants was not always based on the needs of the homebuyers, different methods were used to determine income eligibility, and some grant recipients may not have occupied their homes for the ten years required by the terms of the grants. We made several recommendations aimed at strengthening program administration, and in our follow-up review, we found that most of these recommendations have been implemented.
For a complete copy of Report 98-F-19 click here.