Audit Finds Delaware Complied with 1602 LIHTC Exchange Rules
The Department of the Treasury’s Office of Inspector General last week released an audit of the Delaware State Housing Authority (DSHA) compliance with the Section 1602 low-income housing tax credit exchange program. The audit found that DSHA substantially met the requirements for receiving its 1602 program award and for allocating those funds to low-income housing developments. However, it found that a Delaware state law prevented DSHA from fulfilling the 1602 program requirement that each state housing credit agency open a financial institution account to receive and disburse program funds. The audit determined that DSHA still met the overall financial management requirement by tracking tax credit exchange program funds in a separate general ledger account.