Department of Health and Human Services

Office of Inspector General -- AUDIT

"Review of Urban and Rural Development Grant Number 90EE0322/01, West Humboldt Park Development Council, Chicago, Illinois," (A-05-01-00082)

April 9, 2002

Complete Text of Report is available in PDF format (225 kb). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.


This report provides the results of our audit of discretionary grant number #90EE0322/01 awarded to the West Humboldt Park Family and Community Development Council, Chicago, Illinois.  The grant provided $350,000 to purchase and rehabilitate a deteriorating community shopping center.  The primary objective was to create at least 60 new full-time jobs with 75 percent being filled by low –income individuals and at-risk youth.  Although the Council successfully solicited a real estate developer to purchase and renovate the shopping center, it (i) did not meet the employment goals included in the approved grant proposal, (ii) has not required the real estate developer, or the tenants of the shopping center, to hire individuals meeting the low-income requirements of the grant, and (iii) has not filed a lien with appropriate authorities to protect the Federal government’s interest in the shopping center.  The Council contended that the employment objectives of the grant were met but did not provide support for the generation of new low-income or at-risk youth employment and did not respond to our recommendation to record appropriate liens against the real property improved, in part, with Federal funds.