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Sunday, March 9, 2025

Audit planned for Pennsylvania House Finance Authority after transparency push

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State Rep. Kristin Marcell | Pennsylvania 178th Legislative District

State Rep. Kristin Marcell | Pennsylvania 178th Legislative District

State Representative Kristin Marcell announced that Pennsylvania Auditor General Timothy DeFoor will audit the Pennsylvania House Finance Authority (PHFA). This action follows Marcell's legislative efforts to increase transparency and accountability within the agency. The proposed legislation, HB 2387, was part of a broader initiative by House Republicans to ensure effective state governance.

Marcell explained that in 2020, PHFA faced significant financial challenges. "In 2020, the PHFA was," she noted. "Of that money, only." She highlighted ongoing issues with a $350 million grant from the American Rescue Plan intended for the Homeowners Assistance Grant Program, which experienced delays due to technical problems.

"I offered HB 2387 to have an independent watchdog investigate these issues and offer recommendations to improve their programs moving forward," Marcell stated. Despite resistance from House Democrats preventing the bill's consideration, Marcell expressed gratitude for DeFoor's decision to proceed with an audit. "Auditor General Timothy DeFoor’s decision to engage in an audit of the PHFA fulfills part of the goal of HB 2387, and I thank him for his efforts."

House Republican Appropriations Chairman Seth Grove also praised DeFoor's initiative. He had previously requested PHFA's appearance before the Appropriations Committee during budget hearings. Grove commented on the significance of this audit: “While this audit is limited to the PennHOMES program, I believe once the Auditor General begins his review, systemic issues will become apparent.” He criticized past oversight failures and commended DeFoor for addressing them: “The PHFA has never been audited, which is a complete failure in government oversight. I want to thank Auditor General Timothy DeFoor for stepping up and ending this failure.”

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