Excerpt from the City Manager's Blog post
"Last week I reported good news about the new CARE initiative, a program where government is actually working effectively and efficiently – some would say a rare win. This week, I’m reporting an area where our city has fallen well short of the mark.
The City of Modesto has been a Housing and Urban Development (HUD) entitlement city for over twenty years. During that time, it has successfully managed over $70 million in HUD program funding, awarding grants to thousands of recipients through such federal programs as the Community Development Block Grant (CDBG), HOME Investment Partnership (HOME), and Emergency Solutions Grants (ESG). While we have been successful in delivering projects, the City has struggled with the administration of these grants, as mandated by HUD rules and regulations.
As the first stop for federal funding, the city routinely is audited by the Office of the Inspector General (OIG) to ensure proper procedures and policies are in place for the utilization of these funds. The city understands it is critical that standards are in place for the use of these federal funds, and we know the residents further expect that these standards are indeed followed."