In related news, HUD Secretary Shaun Donovan recently announced new proposed regulations intended to strengthen oversight in the HOME program. According to a HUD news release, the new regulations would:
•Require state and local governments to adopt policies and procedures to improve their oversight of projects, develop a system for assessing the relative risk of projects, and more closely monitor their HOME-funded sub-recipients;
•Require state and local governments to assess a developer’s capacity and the long-term viability of the project, before they commit HOME funds to a project;
•Require more frequent reporting by state and local ‘participating jurisdictions’ to enable HUD to more closely track projects once they’re under way; and
•Set a higher ‘performance bar’ by establishing specific timeframes for taking appropriate corrective actions against participating jurisdictions who fail to complete what they started.