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Supreme Judicial Court - Mass Cases

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cyuirement<br />

Chapter 401<br />

and<br />

proj<br />

overseeinq cost ccrlificaliuri<br />

zts tunded through the New Engl<br />

Fund or the Housinq StarCs Program has been<br />

unsuccessfiJ1. SpcciLic;illy, the Inspector General has<br />

advised <strong>Mass</strong>Housing's Executive Ilirector that Li] C is<br />

clear . . . that the cost, certificxLiun and monitoring<br />

process is 'hroken.'" LcLLer of Inspector General<br />

Gregory W. Su1liv;m dated Sept-ernher 13, 2006, RA<br />

Vol.1, 233. Specifical1.y with regard tu Ncw Enylar.ld<br />

Fund and Housing Starts projects, "reported developer<br />

profits were rout.ine1y and subsLantially understat.ed,"<br />

resulting "j.n many cases . . . [in] profit windfa1l.s<br />

to the developers which deprived the respective<br />

municipalit.ies of the excess profits that should have<br />

bccn paid to the municipality under the regulat.ory<br />

3greement.s ." - .Id. See also Letter of 1nspect.o.r General<br />

Sullj.van dated January 2, 2007 (detaj.li.ng res1.11 t.s of<br />

independent audit of a New hgland Furid project in<br />

Reading, finding gross understatcmcnt oL developer<br />

profit, i.mpermissiblc larid valuati ons, related-party<br />

t.ransactions, and other abuses), HA Vol .1, 236; and<br />

LeCLcr of Irispcctorr General. Sul.1 i.vari to Aaron<br />

Gornstein, Lxecutive 13i.rector OF CIIAPA, dated Dc.ccrriber<br />

6, 2006, RA Vol .I, 247 (discussing CIIAPA's rriethodoloyy<br />

34<br />

n f<br />

11 d

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