US audit points to problems with Sandy contractor

A federal audit of New Jersey’s use of federal Superstorm Sandy funding says that a since-fired contractor mishandled applications for a housing program.

The audit made public by the state Friday says that a firm hired to handle applications for a program that gives homeowners grants to repair storm-damaged homes “failed to adequately document applicant files and filed documents in the wrong location.”

The New Orleans-based company, Hammerman & Gainer International, was fired earlier this year. State officials have said only that there were “performance issues” with the company.

But residents have complained about repeatedly lost application materials.

The audit report from the U.S. Department of Housing and Urban Development gives the state mostly good marks for administering its recovery programs but reported some technical concerns.