40B Cost Certification

Mr. Hedlund moved that the bill be amended by inserting at the end thereof the following new section:-

SECTION ___. Chapter 40B of the General Laws is hereby amended by adding 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 to 23, inclusive, of chapter 40B of the General Laws, as appearing in the 2008 Official Edition. 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 sale 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 the purchase, sale or lease, or tall constructed units, and any other matter requested by the inspector general.

At the request of the third party, the inspector general’s office may subpoena 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 General Laws, as so appearing.