Dec. 09, 2015

HARRISBURG – House Majority Leader Dave Reed (R-Indiana), Pennsylvania Auditor General Eugene DePasquale and Rep. Tommy Sankey (R-Clearfield/Cambria) today unveiled a 75-page audit which describes massive flaws and irresponsible management of funds performed by the Department of Community and Economic Development (DCED) for housing and homeless service providers in Pennsylvania. The audit, initiated at Sankey’s request in the spring of 2014, also seeks to correct major flaws in its operation of two federally funded programs to help address homelessness in the Commonwealth.

“On behalf of the families who turn to us for help, I want to thank the auditor general for his diligent effort in investigating DCED’s practices in regard to these programs,” said Reed. “I am hopeful this audit and the changes that come from it serve as a lesson to all governmental agencies. Regulation is necessary to uphold taxpayer integrity, but it must be coupled with proper management that puts the people of Pennsylvania first.”

Reed, in his prior position as House majority policy committee chairman, led the “Empowering Opportunities:  Gateways Out of Poverty” initiative, which gathered input from community groups, nonprofits and municipal officials on barriers to self-sufficiency for low-income Pennsylvanians. One of the issues the committee addressed was housing, and during its examination members heard complaints from providers about DCED’s handling of the programs in question. Reed tapped Sankey to co-chair a subgroup on housing as part of the initiative, which was charged with finding solutions to these funding problems.

“Many of the providers I spoke with described a practice in which DCED would refuse to issue funds to the provider, citing some minimal issue related to regulatory compliance,” said Sankey.  “I’m certainly not happy to hear that DCED greatly missed the mark to focus on individuals, but I am heartened to know that we can use this audit as an opportunity to redesign a government program to work better for those involved.”

The auditor general’s report includes 34 recommendations for improving DCED’s oversight of homelessness prevention programs in Pennsylvania, citing six counties to prove as examples. The audit found that 380 families in those six counties could have been assisted had those funds been properly managed.

“I want to thank Leader Reed and Representative Sankey for their efforts to look for practical solutions that can work for every family, regardless of political party or ideology,” said DePasquale. “The most vulnerable people among us need help no matter who is in elected leadership.”

For more information on Reed and his legislative priorities, please visit www.repdavereed.net or www.Facebook.com/RepReed.

Representative Dave Reed
62nd District
Pennsylvania House of Representatives

Media Contact: Media Contact:  Andy Briggs
abriggs@pahousegop.com
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