Mr. Hedlund moved that the bill be amended by inserting at the end thereof the following new section:-
SECTION __: The Inspector General, in consultation with the Attorney General shall enter into a contract with a third party for the purposes of auditing all affordable housing projects built through the comprehensive permit process since July 1, 1998 as outlined in Sections 20-23 of Chapter 40B of the Mass. General Laws. The third party shall be hired through a competitive bidding process and meet minimum professional qualifications as determined by the Inspector General’s Office.
All audits performed through this section shall be conducted in accordance with generally accepted auditing standards, and include but not be limited to a review of the submitted cost certification, agreements between the developer and the financing authority, purchase and sales agreements, any and all documentation relating to the real estate appraisal of the relevant property or properties, all reported expenses and revenues, all documentation regarding to the purchase, sale or lease, or all constructed units, and any other matter requested by the Inspector General.
At the request of the third party, the Inspector General’s office may summons the production of all records, reports, audits, reviews, papers, books, documents, recommendations, correspondence and any other data and material relevant to any matter under audit or investigation, in accordance with Section 9 of Chapter 12A of the MGL.
The findings of every audit, including any evidence of illegal or fraudulent activities, or cases where the actual realized profit of an individual project exceeds 20 percent, shall be presented immediately upon completion to the Inspector General for his review. The Inspector General may take whatever further action he deems is necessary, in accordance with Section 10 of Chapter 12 A of the MGL.
It shall be the responsibility of the Attorney General to recover all monies owed to the host communities. The third party hired to conduct the initial audit may receive a pre-determined percentage of all recovered monies, not to exceed 10 percent, with the balance being returned to the host community.