Treasury Reviews 1602 Program in Rhode Island, Arkansas
The Treasury Department’s Office of Inspector General last week posted audits of the Section 1602 program in Rhode Island and Arkansas, concluding that Rhode Island generally complied with requirements, but Arkansas fell short for one property. The audits are required by the American Recovery and Reinvestment Act (ARRA) of 2009, which created the Section 1602 program to award grants to states in lieu of low-income housing tax credit (LIHTC) allocations for properties during the economic downturn. The Rhode Island audit concluded that the state agency generally complied with the program requirements and met the 1602 subaward requirements. The Arkansas audit found that in addition to not meeting subaward requirements related to one property, the state agency failed to perform a timely on-site inspection for it. The audit recommended that the Treasury’s fiscal assistant secretary ensure those requirements are met.