Comptroller reveals payments for substandard work & improperly approved aid in R3 Program.

By THE STAR STAFF

Puerto Rico Comptroller Carmen Vega Fournier revealed on Wednesday that an audit of the Department of Housing identified improperly approved aid, payments made for substandard construction work, and a home rebuilt with public funds that ultimately ended up in the hands of a bank.

“The administration of public funds -- particularly those aimed at addressing critical needs such as housing -- demands the highest level of diligence, transparency, and compliance,” Vega Fournier said in written remarks.

Audit Report OC-26-23 covered the period from Jan. 1, 2018, to Dec. 31, 2023, and evaluated the operations of the Department of Housing’s Repair, Reconstruction, or Relocation Assistance Program (R3 Program).

Vega Fournier said the report issued a qualified opinion, concluding that the program’s operations complied in all significant respects with applicable laws and regulations, with the exception of three findings related to the program’s administration.

One of the findings notes that the program disbursed $253,139 to rebuild a home that was never inhabited by the beneficiary, as it was acquired by a bank through a foreclosure proceeding prior to the final inspection.

According to the report, the final cost of rebuilding that property amounted to $280,239. The bank acquired it at auction for $82,800 and subsequently sold it for $89,000.

Another finding identified aid that was approved for applicants who failed to provide required documentation or who did not meet the established eligibility criteria.