Hardest Hit Fund in Nevada

The findings of a special Inspector General’s report on the Troubled Asset Relief Program:

Nevada did not meet its 2017 HHF utilization threshold and will have its allocation reduced by $6.7 million.

Nevada had a 94 percent drop in the number of homeowners helped each quarter from the first quarter of 2013 to the third quarter of 2017.

Only 167 Nevada homeowners received help from HHF in 2017.

HHF Nevada did not provide mortgage modification assistance to any homeowners during the past year.

The Nevada state agency spent $240,677 in HHF funds on unnecessary expenses, including: $194,294 spent on private investigators, settlement payments for discrimination and severance payments to former employees; $43,497 spent on bonuses, of which nearly all went to the former CEO; $2,886 on two employee picnics and other celebrations and food.

a NAHAC advisory committee reduced “effective state oversight.” Breslow and Manthe also said in the letter that “the money is not reaching the Nevadans who need it.”

NAHAC bylaws were redrawn in 2016 to give the state representation on the nonprofit’s board of directors and give the board authority for the program and monitoring expenditures.

Previous audit

But an audit in 2016 by the special inspector general uncovered $8 million in wasteful spending

During the past two years, NAHAC has severed its ties to the former CEO, who the audit found spent an $11,000 car allowance for a Mercedes-benz.

The 2016 audit also found NAHAC spent $10,963 on employee bonuses, outings, staff lunches and other employee perks.

NAHAC used TARP funds at Herbs & Rye and the Dragon Ridge Country Club and Golf Course. It also spent $5,811 on holiday parties and gifts, the special inspector general found.

The egregious misuse of the HHF program in Nevada prompted Sen. Charles Grassley, R-iowa, to seek a program-wide audit.

A follow-up audit by the inspector general in 2017 found that more than $43,497 was spent in Nevada on bonuses, nearly all of which went to the former CEO.

More importantly, the 2017 audit found that fewer HHF funds were flowing to help homeowners in one of the most hard hit states in the housing crisis.

Only 167 Nevada homeowners received some help from HHF Nevada last year, the inspector general noted, even though 72,048 people in the state were unemployed.

In fact, no Nevada homeowners received mortgage modification assistance from the HHF fund last year despite the fact that the program had $84.7 million available Nevada homeowners approved for the Hardest Hit Fund to help them, the inspector general found. The report also noted there were 49,849 homeowners in the state who owed more than their home was worth.

Treasury estimates that the $6.7 million in funds being cut could have have helped nearly 700 Nevadans.

“That’s not just embarrassing. It is disgraceful and a disservice to the good people of our state,” Titus said.

Contact Gary Martin at gmartin@ reviewjournal.com or 202-662-7390. Follow @garymartindc on Twitter.