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.

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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.

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