Amendment #539 to H3400

40B project cost certification

[Sponsors] Representative Cantwell of Marshfield moves to amend the bill by adding the following new section:-

SECTION XX.  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 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 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.

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 per cent, 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 General Laws, as so appearing.

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 per cent, with the balance being returned to the host community.