Melrose Housing Authority

This is a state performance audit of the Melrose Housing Authority covering January 1, 2012 through December 31, 2013.

“This report details the audit objectives, scope, methodology, and conclusions for the audit period, January 1, 2012 through December 31, 2013.”

The State Auditor reviewed selected parts of the housing authority’s finances, tenant processes, maintenance, procurement, contracts, and related-party transactions.

“In performing this audit, we reviewed and assessed selected financial and management activities of the Authority, such as financial operations, tenant eligibility, rent determinations, site inspections and maintenance services, cost allocations, compliance with the Department of Housing and Community Development’s reporting requirements, procurement of goods and services, contracting and leasing, and related-party transactions.”

The authority manages public housing and federal housing vouchers, so its controls affect housing services for elderly tenants, low-income families, special-needs tenants, and voucher users.

“The Authority manages and oversees 305 units of state housing for elderly tenants, 17 units of state scattered-site housing for low-income families, and one eight-bedroom home for special-needs tenants.”

If you live in Melrose or care about public housing oversight, the report says the authority’s reviewed operations were working adequately, but it also flags that a related nonprofit needed to fix an affordability restriction issue.

“The Authority should monitor MAHC’s progress in complying with the deed restrictions required by Chapter 130 and require a refund of the invested proceeds if the affordability restrictions are not followed.”

The auditor’s main conclusion was positive: the housing authority had adequate controls and practices in the areas tested.

“Based on our audit, we have concluded that the Melrose Housing Authority has established adequate management controls and practices in the areas reviewed that were related to our audit objectives.”

The housing authority said it would work with the Melrose Affordable Housing Corporation to bring the matter into compliance with the law.

“The MHA will work with MAHC to take appropriate steps that will bring it into compliance with Chapter 130.”

The important concern is that MAHC used sale proceeds connected to public housing property, but did not file the required affordability restriction under the 2012 law.

“MAHC did not file an affordability restriction in compliance with Chapter 130 but rather relied on the restriction required by NSC.”

MAHC means the Melrose Affordable Housing Corporation, a nonprofit connected to affordable housing work in Melrose.

“MAHC is a nonprofit corporation organized under Chapter 180 of the Massachusetts General Laws to provide affordable housing in Melrose.”