HUD Used Funds for Building Improvements in Accordance With Its Plans and the Approval of the House and Senate Committees on Appropriations
We audited the U.S. Department of Housing and Urban Development’s (HUD) use of funds for building improvements, managed by its Office of Administration, in response to a request from the U.S. House and Senate Committees on Appropriations Subcommittee on Transportation, Housing and Urban Development, and Related Agencies. HUD planned to use repurposed and transferred funds from fiscal years 2015 and 2016, totaling $18.3 million, for…
November 07, 2018
Memorandum
#2019-PH-0801
Top Management and Performance Challenges Facing Financial Regulatory Organizations
The purpose of this report is to consolidate and provide insight into cross-cutting management and performance challenges facing financial sector regulatory organizations as identified by members of the Council of Inspectors General on Financial Oversight (CIGFO). The Inspectors General within CIGFO report annually on the Top Management and Performance Challenges (TMPC) affecting their respective organizations. This report reflects…
October 03, 2018
Topic Brief
HUD’s Improper Approvals Resulted in Invalid Exemptions and an Ineligible Capital Funds Expenditure for the Lexington-Fayette Urban County Housing Authority
We reviewed the U.S. Department of Housing and Urban Development’s (HUD) approval of the Lexington-Fayette Urban County Housing Authority’s Moving to Work (MTW) Demonstration plan and capital funds drawdowns. The review was performed based on risk indicators identified during audits of the Authority’s Rental Assistance Demonstration Program (RAD) conversion and its Section 8 Housing Choice Voucher Program. The objective was to…
September 28, 2018
Memorandum
#2018-AT-0801
HUD Failed To Enforce the Terms of a Settlement Agreement With Fifth Third Bank Because It Did Not Record Indemnified Loans in Its Tracking System
The U.S. Department of Housing and Urban Development (HUD) Office of Inspector General (OIG) worked with HUD’s Office of Lender Activities and Program Compliance, Office of Single Family Housing, to resolve outstanding matters related to two September 2015 agreements with Fifth Third Bank (FTB) and its principal subsidiary, Fifth Third Bancorp, an Ohio-based bank holding company. HUD failed to properly record required indemnifications…
September 28, 2018
Memorandum
#2018-CF-0802
Risk Assessment of HUD’s Grant Closeout Process
We completed a risk assessment of the U.S. Department of Housing and Urban Development’s (HUD) grant closeout process as required by the Grants Oversight and New Efficiency (GONE) Act of 2016, Public Law 114-117. Our objective was to determine whether an audit or review of HUD’s grant closeout process was warranted.
We found that a moderate risk was associated with HUD’s grant closeout process and recommend that a full audit be…
September 27, 2018
Memorandum
#2018-NY-0801
The Office of Native American Programs Section 184 Program Continues To Operate Without Adequate Oversight 3 Years After the Prior OIG Audit
We audited the U.S. Department of Housing and Urban Development (HUD), Section 184 Indian Home Loan Guarantee program based on a Senate Appropriations Committee request to review the management and oversight of the program. OIG had previously audited the Section 184 program in 2015 (audit report 2015-LA-0002) and determined that the Office of Loan Guarantee (OLG) did not provide adequate oversight of the program. The objective of…
August 27, 2018
Memorandum
#2018-LA-0801
Final Civil Action: Deloitte & Touché, LLP, Settled Allegations That It Failed To Conduct Taylor, Bean & Whitaker Mortgage Corporation’s Audits in Conformance With Generally Accepted Auditing Standards
On February 28, 2018, Deloitte entered into a settlement agreement with the Federal Government, agreeing to pay $149.5 million, of which $115 million was restitution. Deloitte settled allegations for alleged conduct in connection with its role as the independent outside auditor of TBW for TBW’s fiscal years that ended April 30, 2002, through April 30, 2008. The settlement agreement was neither an admission of liability by Deloitte…
August 27, 2018
Memorandum
#2018-FO-1802
Final Civil Action: The Former Executive Director of the Housing Authority of the City of Beeville, TX, Et Al, Settled False Claims Allegations in the Housing Choice Voucher Program
In violation of the housing assistance payment contract’s conflict-of-interest requirements, the former executive director of the Housing Authority of the City of Beeville, TX, executed housing assistance payment contracts on behalf of the Authority with her brother and sister. The former executive director did not fully disclose the conflicts-of-interest and had not sought a waiver from HUD’s Office of Public and Indian Housing until…
August 21, 2018
Memorandum
#2018-FW-1802
Final Civil Action: BSR Trust, LLC, Settled Allegations of Making False Claims Related to Section 8 Housing Assistance Payments
On April 17, 2018, the Office of Program Enforcement issued a letter stating that it had reached a resolution under a Program Fraud Civil Remedies Act of 1986[1] case regarding Summit Bradford Apartments located in Tulsa, OK, following its review. The Government alleged that the owner submitted 40 false claims under the Act.
The Office of Program Enforcement included with its letter the March 28, 2018, settlement agreement with BSR…
May 21, 2018
Memorandum
#2018-FW-1801
Interim Report - Potential Antideficiency Act and Generally Accepted Accounting Principle Violations Occurred With Disaster Relief Appropriation Act, 2013, Funds
While performing audit work to determine whether the U.S. Department of Housing and Urban Development’s Office of Community Planning and Development (HUD CPD) monitored and ensured that grantees complied with the 24-month statutory expenditure requirement contained in the Disaster Relief Appropriations Act, 2013, we noted issues with (1) the recording of grants in the Line of Credit Control System (LOCCS) and (2) the grantees’…
May 15, 2018
Memorandum
#2018-FW-0802
Independent Attestation Review: U.S. Department of Housing and Urban Development, Office of Special Needs Assistance Continuum of Care, Regarding Drug Control Accounting for Fiscal Year 2017
We conducted an attestation review of the U.S. Department of Housing and Urban Development (HUD), Office of Special Needs Assistance Continuum of Care Program, regarding reporting of drug control accounting and associated management assertions for fiscal year 2017. The objective of our attestation review was to and to provide negative assurance on HUD’s drug control accounting reporting to the Office of National Drug Control Policy (…
May 04, 2018
Memorandum
#2018-FO-1801
Final Civil Action: Southern Blvd I, L.P., Settled Allegations of Making False Certifications Related to Section 8 Housing Assistance Payments
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted HUD’s Office of General Counsel, Office of Program Enforcement, in the civil investigation of Southern Blvd I, L.P. The owner executed a housing assistance payments contract for a 73-unit multifamily housing development named Southern Blvd I located in Bronx, NY. The project received HUD project-based Section 8 assistance for 72 of…
March 30, 2018
Memorandum
#2018-CF-1803
Final Civil Action – MetLife Home Loans, LLC, and a Borrower’s Son Settled Allegations of Failing to Comply with HUD’s Federal Housing Administration HECM Loan Requirements
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), conducted a review of a Federal Housing Administration (FHA) home equity conversion mortgage (HECM) underwritten by MetLife Home Loans, LLC. MetLife is an FHA-approved mortgage lender with its principal place of business located in Irving, TX.
On June 9, 2017, HUD notified MetLife and the borrower’s son of their potential liability under the…
March 23, 2018
Memorandum
#2018-CF-1801
Final Civil Action – Independent Public Accountant Debarred for Violating Federal Housing Administration Requirements for Multifamily Properties
An independent public accountant performed audits of the Willow Run (FHA no. 092-44100) and Willow Run II (FHA no. 092-35650) multifamily properties for the years 2005, 2006, 2007, and 2008 under the name of The Blackwing Group, LLC. According to the Minnesota Board of Accountancy, neither the independent public accountant nor The Blackwing Group, LLC, had ever been licensed to perform public accounting engagements in the State of…
March 23, 2018
Memorandum
#2018-CF-1802
Limited Review of HUD Multifamily Waiting List Administration
We audited the U.S. Department of Housing and Urban Development’s (HUD) multifamily program based on the results of our audit of Village North Apartments, Salt Lake City, UT (HUD Office of Inspector General (OIG) audit report 2017-DE-1001). During that audit, we found indications that tenants were able to move into units and become heads of household without being put on the established waiting list. Our objective was to determine…
March 22, 2018
Memorandum
#2018-KC-0802
Risk Assessment of Fiscal Year 2016 HUD Charge Card Programs
The U.S. Department of Housing and Urban Development, Office of Inspector General (HUD OIG), has completed its annual risk assessment of HUD’s charge cards as required by the Government Charge Card Abuse Prevention Act of 2012, Public Law 112-194, and Office of Management and Budget (OMB) Memorandum M-13-21. Our objective was to analyze the risks of illegal, improper, or erroneous purchases in HUD’s fiscal year 2016 travel and…
February 04, 2018
Memorandum
#2018-KC-0801
Management Alert: HUD Did Not Provide Acceptable Oversight of the Physical Condition of Residential Care Facilities
The U.S. Department of Housing and Urban Development (HUD) Office of Inspector General (OIG) reviewed concerns from a complaint within HUD regarding the physical condition of HUD-insured residential care facilities (RCF). This review is part of an ongoing effort of the Office of Inspector General (OIG). At least 10 RCFs had received a score below 31 out of a possible 100 on their most recent Real Estate Assessment Center (REAC)…
January 04, 2018
Management Alert
#2018-CF-0801
Yabucoa Housing Project, Yabucoa Volunteers of America Elderly Housing, Inc., Yabucoa, PR, Section 202 Supportive Housing for the Elderly Program
We audited the Yabucoa Volunteers of America Elderly Housing, Inc., Section 202 Supportive Housing for the Elderly Program. We selected the Yabucoa housing project for review based on concerns regarding the slow progress of the project as noted during the audit of the Puerto Rico Department of Housing multifamily special escrow funds. The objective of this audit was to determine whether Volunteers used Section 202 funds in accordance…
December 28, 2017
Memorandum
#2018-AT-1802
Interim Memorandum Special Review, Office for the Socioeconomic and Community Development, San Juan, PR, State Block Grant Disaster Recovery Program
Reissued 11/27/17
The subject report has been reissued to correct the memorandum number. This reissued memorandum now correctly shows the report number.The number was corrected from 2018-AT-0801 to 2018-AT-1801.
The purpose of this memorandum is to provide time-sensitive information regarding the Office for the Socioeconomic and Community Development’s (ODSEC) proposed framework for the administration of the Community Development…
November 16, 2017
Memorandum
#2018-AT-1801
HUD’s Office of Public Housing Did Not Clearly Define or Provide Guidance for Public Housing Agency Certifications
While working with the U.S Department of Housing and Urban Development’s (HUD) Office of Program Enforcement, we noted that the Office of Public Housing did not clearly identify the certifications that public housing agencies were making in the Application for Federal Assistance, SF (standard form)-424. As a result, we reviewed the guidance concerning the Application, with an objective to determine whether the Office of Public Housing…
November 05, 2017
Memorandum
#2018-FW-0801