When silence puts federal funding at risk

THE Northern Marianas Housing Corporation, administrator of the CDBG-DR program, is a public government entity entrusted with federal disaster recovery grant funds from HUD Region IX. With that trust comes clear obligations: transparency, responsiveness, and accountability to the public.

Instead, applicants are met with silence.

I submitted a formal grievance to NMHC’s CDBG-DR director on October 28, 2025. I received a letter acknowledging receipt and promising a response by December 27, 2025. As of January 2026, no response has been provided. I also emailed the NMHC Board of Directors outlining the same concerns. There has been no response from the Board.

This level of non-responsiveness is not just poor governance — it raises serious compliance concerns.

Under 24 CFR § 570.900–570.913, HUD requires CDBG grantees to establish and follow grievance and appeal procedures. 2 CFR § 200.303 requires effective internal controls and documented decision-making. When grievances go unanswered and records requests are ignored, those controls effectively do not exist.

I also submitted an Open Government Act / FOIA request on October 28, 2025, seeking program financial records. To date, no documents have been produced.

CDBG-DR funds are federal grants, not discretionary local programs. HUD relies on grantees to demonstrate transparency, consistent administration, and timely responses to complaints. Failure to do so does not just harm applicants — it exposes the program itself to audit findings, corrective actions, repayment liabilities, and potential impacts on future federal funding eligibility.

HUD’s Office of Inspector General exists precisely for situations where local oversight breaks down. Continued silence from management and the Board invites that scrutiny.

Disaster recovery programs are meant to rebuild communities — not erode public trust. When a public agency refuses to respond, accountability does not disappear. It escalates.

 

GLENN SMITH
CDBG-DR Program Applicant

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