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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