Audit  Audit of the Massachusetts Housing Finance Agency

In accordance with Section 12 of Chapter 11 of the Massachusetts General Laws, the Office of the State Auditor has conducted a performance audit of certain activities of the Massachusetts Housing Finance Agency (MassHousing) for the period July 1, 2022 through June 30, 2024.

The purpose of our audit was to determine the following:

• whether MassHousing conducted management and occupancy reviews for properties financed by the US Department of Housing and Urban Development (HUD) in accordance with Section 880.612 of Title 24 of the Code of Federal Regulations and Sections 6-9, 6-12, 6-13, and 6-15 of Chapter 6, REV-1, of HUD handbook Multifamily Asset Management and Project Servicing (4350.1);
• whether MassHousing conducted asset management reviews for properties that it financed in accordance with Sections 1, 6-8, and 10 of MassHousing’s “Asset Management Review Guidelines”; and
• whether MassHousing monitored the availability of 3% Priority Program units and notified the state referral agencies responsible for placing eligible applicants in accordance with Section 4 of the “Massachusetts 3% Priority Program Operations Manual.”

Our audit revealed no significant findings that must be reported under generally accepted government auditing standards. However, during the course of our audit, we identified a matter related to the oversight and monitoring of the availability of 3% Priority Program units. This matter involves multiple participating agencies and is discussed further in the Other Matters section of this report.