A Performance Audit
An Audit of Contracting at the Department of Housing and Community Affairs
May 2023
Overview
The Department of Housing and Community Affairs (Department) executed its Texas Rent Relief Program contracts pursuant to the Governor’s disaster declaration for the COVID-19 pandemic; therefore, the Department was not required to comply with all state statutes or administrative rules for contracting and procurement.
The two contracts audited included most required clauses, and the Department implemented sufficient processes to monitor vendors’ performance and compliance with contract requirements. The Department accurately calculated and assessed $4.3 million in penalties to a vendor for not meeting certain performance targets. As of August 31, 2022, the Department reported that it had assessed a total of $8.9 million in penalties. However, not all contract performance targets included a monetary penalty, which limits the Department’s ability to enforce compliance with contract requirements. In addition, the Department’s Manufactured Housing Division did not perform the user access reviews recommended in a prior audit.