March 13, 1996
Audit Case Number
Carmen Valenti, Director, Office of Public Housing
New Jersey State Office
A. Paul Kane, District Inspector General for Audit
New York/New Jersey
Housing Authority of the City of Hoboken
Low Rent Housing Program
Hoboken, New Jersey
We have completed an audit of the Housing Authority of the City of Hoboken, New Jersey
(hereafter called the PHA) pertaining to selected operations of its Low Rent Housing Program.
The audit generally covered the period from October 1, 1993 through June 30, 1995, and, where
appropriate, was extended to December 31, 1995. The objectives of the audit were to determine
whether the PHA complied with the U.S. Department of Housing and Urban Development
(HUD) requirements and policies pertaining to: 1) personnel practices; 2) procurement; 3)
maintenance; and 4) housing quality standards.
Generally, the PHA maintained its housing units in decent, safe and sanitary condition. In
particular, we found that the PHA's housing stock met the required Housing Quality Standards
and can be considered comparable to that of commercial apartment buildings in the area.
However, this report contains two findings that warrant your attention. The findings showed that
the PHA entered into an employment buyout arrangement with its Executive Director that in our
opinion was not necessary and reasonable. Also, the PHA procured professional legal services
in a manner that did not provide for full and open competition. As a result, we consider
$171,476.42 as unnecessary and unreasonable costs and $17,482.10 as unsupported costs.
Within 60 days, please give us, for each recommendation cited in the report, a status report on:
(1) the corrective action taken; (2) the proposed corrective action and the date to be completed;
or (3) why the action is not considered necessary. Also please furnish us copies of any
correspondence or directives issued related to the audit.
Should you or your staff have any questions, please contact William