Internal audit finds process gaps in Tiny Homes project; council adopts oversight recommendations

The city’s internal audit office briefed council on the Tiny Homes project, finding that the initiative — originally presented as veteran‑focused after a proposed donation — materially shifted when that donation did not materialize and staff pursued HOME‑ARP funds that carry eligibility restrictions. The audit concluded the project’s scope changes were not always presented in a single, clear action to council and recommended a formal project‑management policy requiring council approval when funding sources or eligibility materially change.

Council members expressed frustration about transparency gaps and the fact that veterans expected prioritization that the funding rules could not legally support. Council voted to accept the auditor’s recommendations, calling for stricter documentation, decision logs and council briefings whenever a funding change alters a project’s objectives.