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 the City of Providence RI’s HOME Investment Partnerships program based on an OIG risk assessment, which ranked the City as the highest risk HOME grantee in New England.  The objective of the audit was to determine whether the City properly committed and disbursed HOME funds in accordance with Federal and U.S. Department of Housing and Urban Development (HUD) rules and regulations. City officials did not properly administer their...

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...

We audited the Housing Choice Voucher and public housing programs at the West Warwick Housing Authority as a result of concerns from the U.S. Department of Housing and Urban Development (HUD) and a hotline complaint.  The audit objectives were to determine whether (1) procurements were executed in accordance with Federal regulations, (2) West Warwick officials established adequate controls over the Housing Choice Voucher and public housing...

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...

We audited Health Concepts Ltd., a management agent that administers six Federal Housing Administration (FHA)-insured nursing homes.  We conducted this audit based on our review of the Pine Grove Health Center.  The review found that Pine Grove’s owners paid salaries for onsite staff that were covered under the management agreement and charged for services that should have been included in the management fee.  Our objectives for...

We audited the Federal Housing Administration-insured Burrillville Nursing Home, Incorporated, doing business as Pine Grove Health Center, based on a U.S. Department of Housing and Urban Development (HUD), Office of Inspector General risk assessment.  Additionally, HUD identified Pine Grove as a high financial risk and a potentially troubled facility, and Pine Grove’s auditors reported substantial doubt regarding its ability to continue as...

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...

We audited the Community Development Block Grant Disaster Recovery (CDBG-DR) assistance grant provided to the State of Rhode Island by the U.S. Department of Housing and Urban Development (HUD) to assist in disaster recovery and rebuilding efforts resulting from damages caused by Hurricane Sandy.  The audit objective was to determine whether State officials obligated and disbursed the grant funds in a timely manner in accordance with HUD...

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 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...

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...

We audited the State of Rhode Island’s Neighborhood Stabilization Program (NSP) based on a risk assessment that considered the amount of funding, the U.S. Department of Housing and Urban Development’s (HUD) risk assessment, and HUD findings related to one of the State’s subrecipients.  Our overall audit objective was to determine whether the State properly administered the NSP and ensured that costs incurred were in accordance with HUD...

We completed a review of the Rhode Island Housing’s HOME Investment Partnerships Program based on an Office of Inspector General risk assessment of New England HOME recipients that considered the amount of funding provided and prior audit and monitoring findings.  Our audit objectives were to determine whether Rhode Island Housing officials awarded HOME funds to grantees in a reasonable and supported manner and whether HOME funds were...