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Date Issued

Housing

  •  
    Status
      Open
      Closed
    2020-FO-0001-001-D

    Correct the programming error in the HERMIT system to ensure that the correct insurance-in-force balances are reported on the note disclosures.

  •  
    Status
      Open
      Closed
    2020-FO-0001-001-E

    Develop policies and procedures to ensure that the line items in the required note disclosures are understood, properly calculated, and properly disclosed in the financial statements in accordance with OMB Circular A-136.

Housing

  •  
    Status
      Open
      Closed
    2019-KC-0003-001-A
    $6,130,757,970
    Funds Put to Better Use

    Recommendations that funds be put to better use estimate funds that could be used more efficiently. For example, recommendations that funds be put to better use could result in reductions in spending, deobligation of funds, or avoidance of unnecessary spending.

    Prioridad
    Priority

    We believe these open recommendations, if implemented, will have the greatest impact on helping HUD achieve its mission to create strong, sustainable, inclusive communities and quality affordable homes for all.

    Require lenders to obtain the borrowers’ consent to verify the existence of delinquent Federal taxes with the IRS during loan origination and deny any applicant with delinquent Federal tax debt and no payment plan or a noncompliant payment plan or an applicant refusing to provide consent from receiving FHA insurance to put at least $6.1 billion to better use by avoiding potential future costs to the FHA insurance fund.


    Status

    As of October 2023, the Office of Single Family Housing reported it will need additional tax information from the Internal Revenue Service to complete the planned action, and that the Office of the Chief Financial Officer will assist the Office of Single Family Housing. As of June 2024, no new update has been reported.

    The final action target date was May 23, 2024, but was updated in June 2024 to May 23, 2025.


    Analysis

    To fully address this recommendation, HUD will need to provide evidence that it established a method of borrower consent to verify the existence of delinquent federal taxes.

    Implementation of this rule should result in HUD putting $6.1 billion to better use.

  •  
    Status
      Open
      Closed
    2019-KC-0003-001-B

    Revise HUD handbooks for forward and reverse mortgages to reflect that tax liens and judgments are no longer reported on credit reports.

  •  
    Status
      Open
      Closed
    2019-KC-0003-001-C

    Revise HUD handbooks for forward and reverse mortgages for uniformity in the treatment of delinquent tax debt and the existence of payment plans as only the forward mortgage handbook requires 3 months of payments.

Housing

  •  
    Status
      Open
      Closed
    2019-BO-1004-001-A
    $17,761
    Questioned Costs

    Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.

    Reimburse the project $17,761 from nonproject funds for the project operating funds disbursed for ineligible expenses.

  •  
    Status
      Open
      Closed
    2019-BO-1004-001-B
    $17,653
    Questioned Costs

    Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.

    Support or reimburse the project $17,653 from nonproject funds for the project operating funds disbursed without sufficient supporting documentation.

  •  
    Status
      Open
      Closed
    2019-BO-1004-001-C
    $45,000
    Funds Put to Better Use

    Recommendations that funds be put to better use estimate funds that could be used more efficiently. For example, recommendations that funds be put to better use could result in reductions in spending, deobligation of funds, or avoidance of unnecessary spending.

    Reclassify and properly record $45,000 in owner advances misclassified as loans.

  •  
    Status
      Open
      Closed
    2019-BO-1004-001-D

    Strengthen controls to ensure that project advances are reimbursed only when the project is in a surplus-cash position.

  •  
    Status
      Open
      Closed
    2019-BO-1004-001-E

    Implement adequate controls to ensure the review of the management agent fee to ensure that it is properly calculated in accordance with the HUD management agent certification and approved prior to payment from project operating funds.

  •  
    Status
      Open
      Closed
    2019-BO-1004-001-F

    Implement adequate controls to ensure that project funds are used only for eligible and supported operating expenses.

  •  
    Status
      Open
      Closed
    2019-BO-1004-001-G

    Obtain a formal agreement and approval from HUD to specify who is authorized to use the project’s community and recreation rooms and what activities are authorized or prohibited. In addition, this agreement must ensure that sufficient legal and liability protections are in place, establish consequences for noncompliance, and determine who is to pay for the utilities and maintenance of the rooms.

  •  
    Status
      Open
      Closed
    2019-BO-1004-001-H

    Amend the management agent agreement compensation schedule to remove bookkeeping fees as a fee separate from the 8.9 percent management agent fee.

Housing

  •  
    Status
      Open
      Closed
    2019-CH-1003-001-A
    $30,037
    Questioned Costs

    Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.

    Reimburse HUD $30,037 from nonproject funds for the overpayment of housing assistance and utility allowances due to incorrect calculations.

  •  
    Status
      Open
      Closed
    2019-CH-1003-001-B
    $144
    Funds Put to Better Use

    Recommendations that funds be put to better use estimate funds that could be used more efficiently. For example, recommendations that funds be put to better use could result in reductions in spending, deobligation of funds, or avoidance of unnecessary spending.

    Reimburse the appropriate households $144 from nonproject funds for the underpayment of housing assistance due to incorrect calculations.

  •  
    Status
      Open
      Closed
    2019-CH-1003-001-C
    $159,938
    Questioned Costs

    Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.

    Support or reimburse HUD $159,938 from nonproject funds for the unsupported payments of housing assistance cited in the finding.

  •  
    Status
      Open
      Closed
    2019-CH-1003-001-D
    $26,915
    Questioned Costs

    Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.

    Pursue collection from the applicable household or reimburse HUD $26,915 from nonproject funds for the overpayment of housing assistance due to unreported income.

  •  
    Status
      Open
      Closed
    2019-CH-1003-001-E
    $54,257
    Funds Put to Better Use

    Recommendations that funds be put to better use estimate funds that could be used more efficiently. For example, recommendations that funds be put to better use could result in reductions in spending, deobligation of funds, or avoidance of unnecessary spending.

    Implement adequate quality control procedures to ensure that housing assistance payments are appropriately calculated and supported. These procedures and controls should ensure that $54,257 in program funds is appropriately used for future payments.

  •  
    Status
      Open
      Closed
    2019-CH-1003-001-F

    Ensure that third-party verifications, such as tax returns provided by the applicant, are from the source by obtaining certified tax returns from the Internal Revenue Service.

  •  
    Status
      Open
      Closed
    2019-CH-1003-001-G

    Revise its occupancy standards to include policies and procedures to prevent underutilization of the project’s units.