JOSEPH M FERGUSON INSPECTOR GENERAL
CITY OF C.I IICAGO , OFFICE OF INSPEC'l OP CL NEPAL NORTH SEDGWICK 5TREE I, S UII Li 200 CHICAGO, 11 LINOIS 60654 TELEPHONE (773) 478-7799 FAX (773) 478-3949
DECEMBER 12, 2019
TO THE EXECUTIVE DIRECTOR AND BOARD OFTHE CHICAGO LOW-INCOME HOUSING TRUST FUND, MAYOR, CITY COUNCIL, CITY CLERK, CITY TREASURER, AND RESIDENTS OF THE CITY OF CHICAGO:
The City of Chicago Office of Inspector General (OIG) has completed an audit of the Chicago Low-Income Housing Trust Fund's (the "Trust Fund") management of housing quality inspections for units participating in the Rental Subsidy Program (RSP). The RSP supports the City's affordable housing efforts by providing subsidies to extremely low-income individuals and families.
Basedpn the results of our audit of 2017 operations, OIG concluded that the Trust Fund did not ensure all RSP properties met its standards for safe, sound, and secure housing. The Trust Fund subsidized properties with City building code violations and other serious housing quality deficiencies, had a payment system that was inadequately protected against potential fraud and errors, and paid properties that did not have complete contract documentation. Moreover, the Trust Fund's 2014-2018 public reports to the City were inaccurate and incomplete. In response, the Trust Fund stated that it was working with its contracted vendor to merge its inspection, contract, and payment systems; reviewing building^ violations and payment ledgers; correcting its property tracking system to ensure accuracy; and "completely revamp[ing]" its public reporting.
It is critical that the Trust Fund devise a contracting, inspection, and payment process that ensures it is only subsidizing well-maintained, safe housing for low-income Chicagoans. Likewise, the Trust Fund needs to correct its records to reassure its stakeholders and funders that it is operating responsibly and effectively.
We thank Trust Fund staff and management for their coo...
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