GENESEE COUNTY, MI -- A federal audit says the county Land Bank mismanaged an asbestos removal program in Flint earlier this year, failing to confirm materials were properly disposed of and handled.
The report by the Office of Special Inspector General for the Troubled Asset Relief Program was issued Tuesday, Nov. 21, and says the U.S. Army Corps of Engineers found three areas of high risk in the Land Bank program -- removal and storage of asbestos and other hazardous material, use of appropriate landfills and recycling facilities, and use of proper material to fill holes left by demolition work.
"The people of Flint, Michigan, require more than trust that these demolitions will not harm them -- particularly after their contaminated water," the audit says.
The report concludes that the U.S. Department of Treasury does not require state oversight of programs like the one the Land Bank manages in Flint to assure quality work and safeguards, and in "the absence of federal requirements, the Corps identified that the Michigan state housing agency's requirements do not adequately cover these high-risk areas."
Michele Wildman, executive director of the Land Bank, said her agency is still reviewing the report and associated files from a 2014 demolition that was a part of the review.
Wildman said "many of the issues noted are inaccurate and appear to show a poor understanding by auditors of program requirements and local process."
"We continue to put the needs of the community first and foremost in our demolition program, and we have worked closely with regulators to develop systems for compliance with all local, state and federal regulations and HHF grant requirements," Wildman said in an email to MLive-The Flint Journal.
"If there are additional controls that are recommended by regulators in the handling of asbestos beyond the ones we have in place, we welcome that discussion," her statement says. "In fact, on at least three occasions over the past year, we have made specific requests for technical assistance to the state. We will continue making these requests, as public health is our highest priority."
The Journal could not immediately reach Flint Mayor Karen Weaver for comment on the audit.
A spokeswoman for the Michigan State Housing Development Authority said officials take all reviews of its programs seriously.
MSHDA created the Homeowner Assistance Nonprofit Housing Corporation to oversee the use of Hardest Hit Fund (HHF) dollars in Michigan, the federal program that funded the demolitions.
"Since inception of Michigan's HHF blight elimination program, MHA has worked to strengthen its policies and procedures regarding pre- and post-demolition inspection protocols before any HHF funds are disbursed," the agency said in a statement.
"MHA is carefully reviewing SIGTARP's audit and recommendations and will address them with the Genesee County Land Bank and U.S. Department of the Treasury accordingly."
MSHDA contracted with the county Land Bank as its local partner to handle demolitions.
The audit said there is currently no requirement for the state to perform oversight inspections or for it to institute any type of quality assurance program.
"At a minimum, the state should be required to perform technical oversight to assure waste materials are handled properly and holes are being filled with clean material," the audit says.
SIGTARP announced in March that it would audit how $25.5 million was spent on demolition and other related costs in Flint.
The agency says it audits programs to prevent fraud and identify cost savings, wasteful spending, abuse, inefficiency and mismanagement.