The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General audited the Benkelman Housing Authority based on a request from the U.S. Department of Housing and Urban Development, Office of Inspector General (HUD OIG), Office of Investigation.  Additionally, HUD conducted an onsite assessment in May 2016 and identified concerns, including procurement, income verification, travel policy, and significant control...

The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General audited the Meeker Family and Elderly Housing project based on a referral from HUD’s Office of Multifamily Housing Programs in Denver, CO.  The project is owned and managed by the Meeker Housing Authority.  HUD alleged that the owner had failed to file audited financial statements or make mortgage payments to HUD for the past 10 years.  Our...

We audited Baker Tower Apartments, LLC (corporation), located in Denver, CO, based on data showing that the corporation had taken more than $3.4 million in owner distributions since 2013 and scored poorly on its most current Real Estate Assessment Center physical property inspection.  The objective of our audit was to determine whether the corporation complied with the regulatory agreement and U.S. Department of Housing and Urban...

The U.S. Department of Housing and Urban Development, Office of Inspector General audited the Denver Housing Authority of Denver, CO for calendar years 2013-2015.  The audit was initiated because of deficiencies found in other procurement audits in our region.  The Authority is the largest recipient of U.S. Department of Housing and Urban Development (HUD) funds in the region, and we wanted to ensure that it did not have the...

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), referred alleged violations to HUD’s Office of Program Enforcement for action under the Program Fraud Civil Remedies Act based on two audits of DHI Mortgage Company Ltd.  (DHIM) that found it did not follow HUD requirements when it underwrote Federal Housing Administration (FHA)-insured loans with prohibited restrictive addenda to the purchase...

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited Boulder County because it is a significant recipient of the State of Colorado’s more than $320 million Community Development Block Grant Disaster Recovery grant, having received grants of more than $6 million.  Our audit objective was to determine whether Boulder approved its grants and procured consultants in accordance with applicable Federal...

The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General (OIG) performed a review of The Retreat at Church Ranch bank records based on our audit conducted of the project.  Our review disclosed that the owner allegedly made payments for personal expenses from the project’s bank account.  We requested that HUD pursue proceedings against the owner. On July 22, 2015, HUD notified the owner of his proposed...

The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General (OIG) performed a review of The Retreat at Church Ranch bank records based on our audit conducted of the project.  Our review disclosed that the owner allegedly made payments for personal expenses from the project’s bank account.  We requested that HUD pursue proceedings against the owner. On March 31, 2015, HUD filed a complaint seeking more than...

We audited Coconut Grove Apartments due to concerns expressed by the U.S. Department of Housing and Urban Development’s (HUD) Office of Multifamily Housing Programs regarding the management of the project.  The main concern was that the owner may have diverted project funds for nonproject expenses.  Our audit objective was to determine whether Coconut Grove’s owner operated its Sections 223(f) and 241(a)-insured multifamily rental...

The U.S. Department of Housing and Urban Development (HUD) – Office of Inspector General audited the Fairmont Housing Authority in Fairmont, NE, regarding its procurement and expenditures for its HUD, Office of Public and Indian Housing programs.  Our audit objective was to determine whether the Authority followed HUD rules and regulations and its own policies and procedures for procurement and expenditures. The Authority did not properly...

The Office of Inspector General (OIG) conducted an audit of Opportunity in Living (OIL), Centennial, CO’s participation in the U.S. Department of Housing and Urban Development’s (HUD) Single Family Property Disposition program.  Our audit objective was to determine whether OIL’s purchase of HUD-owned homes during the exclusive listing period violated HUD regulations at 24 CFR (Code of Federal Regulations) Part 291.  We determined that...

The U.S. Department of Housing and Urban Development (HUD) – Office of Inspector General audited the York Housing Authority in York, NE, regarding its procurement and expenditures for its HUD, Office of Public and Indian Housing programs.  Our audit objective was to determine whether the Authority followed HUD rules and regulations and its own policies and procedures for procurement and expenditures. The Authority did not properly procure...

The U.S. Department of Housing and Urban Development (HUD) – Office of Inspector General audited the Stromsburg Housing Authority in Stromsburg, NE, regarding its procurement and expenditures for its HUD, Office of Public and Indian Housing programs.  Our audit objective was to determine whether the Authority followed HUD rules and regulations and its own policies and procedures for procurement and expenditures. The Authority did not...

We audited NOVA Financial & Investment Corporation based on a referral from the U.S. Department of Housing and Urban Development’s (HUD) Quality Assurance Division detailing a separate lender that originated Federal Housing Administration (FHA)-insured loans that contained ineligible downpayment assistance gifts.  The HUD Office of Inspector General’s (OIG) analysis identified NOVA as a lender with the highest origination volume in the...

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited the City of Colorado Springs’ Community Initiatives and Economic Vitality Division based upon findings identified in U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, memorandum number 2014-DE-1802.  The objectives of our audit were to determine whether the City properly committed its HOME Investment...

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited the City of Colorado Springs’ Community Initiatives and Economic Vitality Division based upon findings identified in U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, memorandum number 2014-DE-1802.  Our audit objective was to determine whether the City used its grant funds for eligible project costs and...

HUD OIG conducted a civil investigation of an alleged loan origination fraud scheme involving a cash-out refinance loan that was insured by the Federal Housing Administration (FHA).  FHA provides mortgage insurance on loans made by FHA-approved lenders to creditworthy borrowers.  Borrowers must occupy the properties as their primary residence for at least 1 year.  Borrowers certify to their intent to occupy the property when...

The U.S. Department of Housing and Urban Development – Office of Inspector General audited the City of Colorado Springs (City) in response to a citizen’s complaint received by our office.  The complainant alleged the City committed HOME Investment Partnerships Program (HOME) funds without written agreements, delayed the reporting of Community Development Block Grants (CDBG) program income in a timely manner, and improperly charged some of...

The U.S. Department of Housing and Urban Development – Office of Inspector General audited the Colorado Coalition for the Homeless, Denver, CO in response to issues discovered during a U.S. Department of Housing and Urban Development (HUD) - Denver, Office of Community Planning and Development (CPD), monitoring review.  Issues identified during HUD’s review included improperly accounting for administrative costs and the use of grant funds...

We reviewed Southwest Stage Funding, LLC, dba Cascade Financial Services, in Gilbert, AZ.  We selected Southwest Stage because it originated 1,841 loans totaling more than $244 million during calendar years 2012 and 2013.  Further, it had received more loan endorsements on manufactured housing loans than any other lender in Texas since January 1, 2009.  Our objective was to determine whether the lender complied with U.S....