(The following was excerpted from an article in the Single Audit Information Service.) Because many projects awarded under the Department of Housing and Urban Development’s Brownfield program were never started, the HUD Office of Inspector General has urged the agency the increase its monitoring efforts to ensure that projects are progressing as planned, or terminate projects if work never began.

The Brownfield Economic Development Initiative program provides Community Development Block Grant funds for industrial or commercial sites where redevelopment was hindered by the presence or potential presence of environmental contamination. HUD ended the Brownfield program as a distinct program as of fiscal year 2012, but previously awarded Brownfield activities remain eligible under the CDBG program until the awards terminate.

In a recent audit, OIG found that HUD did not have adequate procedures to ensure the program was meeting its goals. In particular, it failed to provide adequate program oversight and did not terminate in a timely manner projects that grantees did not start. “These conditions occurred because of confusion within HUD over monitoring requirements and responsibilities, and because HUD was reluctant to terminate projects and deobligate funds before grants expired,” OIG said. “As a result, the Brownfield program was not always effective.”