A new state audit has raised concerns about how Rhode Island manages public funding for housing, finding nearly $2.8 million in federal funds that were not properly recorded and more than $200,000 in grant money that went undrawn after grants expired.
The September 29 report examined the Rhode Island Executive Office of Housing’s management of approximately $54.2 million in state and federal grants between July and December 2025. Auditors pointed to inconsistent procedures for tracking funds and monitoring grant recipients.
Expired Grants and Missing Documentation
Auditors identified $202,710 in funding that organizations could not draw because they had not submitted eligible expenses. The state’s grant management system had not been updated to reflect the status of the funds as of June 2026.
Housing officials said they had requested extensions from the U.S. Department of Housing and Urban Development but could not provide documentation of those requests during the audit. According to the office, HUD approved extensions for the affected grants on October 1, allowing the projects to continue.
The audit also found that federal deposits were not consistently recorded in the state accounting system. Officials attributed the delays to the transition to a new financial management system and said the discrepancies had been addressed by June, with remaining amounts recorded in July.
The report clarified that the unrecorded funds were not lost. Money remaining unrecorded at the end of the fiscal year is transferred to a state escrow account, though incomplete records increase the risk of inaccurate financial reporting.
Officials Promise Corrective Measures
The findings echo concerns raised by federal monitors in 2024 over Rhode Island’s handling of COVID-era housing grants, including inadequate spending records and gaps in tracking who benefited from assistance.
State Rep. June Speakman, who chairs the House Commission on Housing Affordability, said she was concerned about the grant tracking problems but noted that it was unclear whether they stemmed from agency shortcomings or the transition to the new accounting system.
The Executive Office of Housing says it has already implemented several corrective measures. It has also required quarterly reviews of all federal grants for the 2027 fiscal year to track spending, deposits and remaining balances.
The office has until October 31 to address the remaining audit findings, according to Rhode Island Current.
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