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BACKGROUND AND OBJECTIVES
The Newport News Redevelopment and Housing Authority (Authority) was established in 1938 to
create affordable housing, viable neighborhoods, and opportunities for self-sufficiency to enhance
the quality of life for all citizens of Newport News. A seven-member board of commissioners
governs the Authority. The Authority’s executive director is Karen R. Wilds. Its main
administrative office is located at 227 27th Street in Newport News, Virginia.
The Authority owned and operated 2,151 public housing units and administered 2,216 housing
choice vouchers under consolidated annual contributions contracts with the U.S. Department of
Housing and Urban Development (HUD) during the audit. The consolidated annual contributions
contract defines the terms and conditions under which the Authority agrees to develop and operate
all projects under the agreement. HUD authorized the Authority the following financial assistance
from fiscal years 2004 to 2005:
• $26.7 million to provide housing assistance through tenant-based Section 8 housing choice
vouchers,
• $9.4 million in operating subsidies to operate and maintain its low-income housing
developments, and
• $6.6 million in Public Housing Capital Fund program funding to modernize its low-income
public housing units.
Our main audit objective was to determine whether the Authority appropriately used low-rent
public housing funds to support its other programs and whether it purchased goods and services
in compliance with HUD and federal regulations. We also evaluated the Authority’s compliance
with HUD regulations for recertifying low-income housing tenants and its support for
drawdowns of HUD funds.
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