We audited the Homelessness Prevention and Rapid Re-Housing Program (HPRP) of People Assisting the Homeless (PATH) and three of its subgrantees based on the results of a separate audit of the City of Los Angeles Housing Department (Department). HPRP is part of the American Recovery and Reinvestment Act of 2009 (Recovery Act), and auditing the Recovery Act program is part of the U.S. Department of Housing and Urban Development (HUD), Office of...

We reviewed the hazard-damaged units that the Housing Authority of the City of Los Angeles (Authority) is rehabilitating using formula grant American Recovery and Reinvestment Act of 2009 (Recovery Act) Public Housing Capital Fund program (program) funds. We selected the Authority based upon the results of our capacity review of the Authority’s Recovery Act program (see Office of Inspector General (OIG) audit report #2011-LA-1002, issued...

The U.S. Department of Housing and Urban Development (HUD) OIG audited the Neighborhood Stabilization Programs (NSP) administered by Palm Beach County (County). Our objective was to determine whether the County administration of its NSPs complied with federal requirements. Specifically, we determined whether (1) NSP1 activities met or will meet the low- and moderate-income national objective, (2) program income was properly accounted for, and...

The U.S. Department of Housing and Urban Development (HUD) OIG audited the Neighborhood Stabilization Programs (NSP) administered by Palm Beach County (County). Our objective was to determine whether the County administration of its NSPs complied with federal requirements. Specifically, we determined whether (1) NSP1 activities met or will meet the low- and moderate-income national objective, (2) program income was properly accounted for, and...

HUD OIG audited the Neighborhood Stabilization Program (NSP) administered by the City of Miami Gardens, Florida (City). Our objective was to determine whether the City administered its program in accordance with applicable U.S. Department of Housing and Urban Development (HUD) requirements. Specifically, we wanted to determine whether (1) expenditures were allowable and (2) activities met the program’s national objectives. The City met the...

We audited the Homelessness Prevention and Rapid Re-Housing Program (HPRP) of Special Services for Groups (Special Services) based on the results of a separate audit of the City of Los Angeles Housing Department (Department). Special Services is a subrecipient of the Department’s HPRP. HPRP is part of the American Recovery and Reinvestment Act of 2009 (Recovery Act), and auditing Recovery Act programs is one of the U.S. Department of Housing...

We completed a review of the Hawthorne Housing Authority’s (Authority) Section 8 program. We performed the audit based on a recommendation from the Los Angeles U.S. Department of Housing and Urban Development (HUD) Office of Public Housing indicating missing and/or inadequate financial records, and because Section 8 reviews are a part of the Office of the Inspector General’s (OIG) annual audit plan. Our objective was to determine whether the...

We audited Lutheran Social Services of Northern California (auditee) in response to a hotline complaint. The complaint alleged that the auditee misused Homelessness Prevention and Rapid Re-Housing Program (HPRP) funds. The specific allegations included (1) ineligible purchases using employee credit cards, (2) unreasonable rental of storage units, (3) caseworkers qualifying family and friends for HPRP who were not eligible, (4) diversion of...

We audited the City and County of San Francisco (City) because its grant of more than $8.7 million was one of the largest Homelessness Prevention and Rapid Re-Housing Program (HPRP) grants in the State of California. Our objective was to determine whether the City disbursed HPRP funding in accordance with program requirements. The City paid for HPRP services for ineligible participants and participants whose eligibility was not supported. It...

HUD OIG conducted an inspection to address concerns of OIG senior management regarding the Housing Authority of the City of Fort Myers’ (HACFM) use of ARRA funds to construct a new administration building.  Specifically, we wanted to know whether:  (1) HACFM could use ARRA funds to construct a new administration building, and (2) did HACFM use ARRA funds to purchase furniture and equipment for the new administration building; if yes,...

We audited the Naomi Gardens housing project (project) in response to a congressional request from Representative David Dreier of the 26th District of California. The request to review the project was based on a constituent’s complaint that alleged the possible misuse of U.S. Department of Housing and Urban Development (HUD) funds, including the award of work to the family members of project employees without seeking proposals from other...

We completed a capacity review of the Housing Authority of the City of Los Angeles’ (Authority) capital fund grant awarded under the American Recovery and Reinvestment Act of 2009 (Recovery Act) program. We performed the audit because Recovery Act reviews are part of the Office of Inspector General’s (OIG) annual plan and the Authority was awarded a significant amount of program funds. Our objective was to evaluate the Authority’s capacity in...

HUD OIG performed an audit of Nationwide Home Loans, Inc. (Nationwide), a Federal Housing Administration (FHA) approved direct endorsement lender located in Miami, Florida. The review was performed based on the lender’s high default rates. The purpose of the audit was to determine whether the lender followed the U.S. Department of Housing and Urban Development’s (HUD) requirements when (1) originating and underwriting loans and (2)...

We audited the Homelessness Prevention and Rapid Re-Housing Program (program) at the City of Los Angeles Housing Department (Department) because it was the second largest single program grant awarded within California under the American Recovery and Reinvestment Act of 2009 (Recovery Act). In addition, our audit is part of the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General’s (OIG) national mandate to monitor...

HUD OIG performed an audit of Nationwide Home Loans, Inc. (Nationwide), a Federal Housing Administration (FHA) approved direct endorsement lender located in Miami, Florida. The review was performed based on the lender’s high default rates. The purpose of the audit was to determine whether the lender followed the U.S. Department of Housing and Urban Development’s (HUD) requirements when (1) originating and underwriting loans and (2)...

HUD OIG audited the Community Development Block Grant program (program) administered by the City of Deerfield Beach, FL (City). The objective of the audit was to determine whether the City administered its program in accordance with applicable U.S. Department of Housing and Urban Development (HUD requirements. We selected the City for review because it had come under increased scrutiny when various newspaper articles and reviews highlighted...

HUD OIG audited the Community Development Block Grant program (program) administered by the City of Deerfield Beach, FL (City). The objective of the audit was to determine whether the City administered its program in accordance with applicable U.S. Department of Housing and Urban Development (HUD requirements. We selected the City for review because it had come under increased scrutiny when various newspaper articles and reviews highlighted...

We audited the Compton Housing Authority’s (Authority) Section 8 program as the result of the Los Angeles Office of Public Housing’s concerns regarding its program administration. Our objective was to determine whether the Authority used Section 8 program funds in accordance with HUD rules and regulations. The Authority did not use Section 8 program funds in accordance with HUD rules and regulations as it did not fully comply with portability...

HUD OIG conducted this audit based on a confidential complaint submitted through the U.S. Department of Housing and Urban Development (HUD) Office of Inspector General (OIG) hotline. The complaint alleged several improprieties involving the County’s NSP and HOME programs. Our objectives were to determine whether the County (1) complied with requirements in the procurement, award, and execution of its NSP administrative contract and (2)...

While performing an internal audit of the U. S. Department of Housing and Urban Development’s (HUD) Home Equity Conversion Mortgage (HECM) program, we noted one HECM loan underwritten by Financial Freedom Senior Funding Corporation, (Financial Freedom) of Irvine, CA, that was improperly insured as the property had several years of deferred property taxes, which is a violation of the HECM regulations. Neither Financial Freedom’s loan...