Pilgrim Village Settled Allegations of Making Unauthorized Distributions and Improper Disbursements of Multifamily Project Funds
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted the U.S. Attorney’s Office for the Western District of New York in the civil investigation of Pilgrim Village Associates, L.P.; North-Ellicott Management, Inc.; and Trammell Property Management (Pilgrim Village). Pilgrim Village Associates, L.P., was the owner of Pilgrim Village Apartments, a 90-unit multifamily housing development located in...
Septiembre 08, 2016
Memorandum
#2016-CF-1802
Sun West Mortgage Company, Cerritos, CA, Did Not Always Meet HUD-FHA Loan Underwriting and Quality Control Requirements
We reviewed Sun West Mortgage Company’s loan underwriting activities, including quality controls, based on a citizen complaint alleging that the mortgage company was deficient in underwriting its loans. The complaint further alleged that the mortgage company used unauthorized staff in another country and shared user identification numbers to “pre-underwrite” Federal Housing Administration (FHA)-insured loans. Our objective was to...
Agosto 29, 2016
Report
#2016-LA-1010
The Dolores Frances Affordable Housing Project, Los Angeles, CA, Was Not Administered in Accordance With Its Regulatory Agreement and HUD Requirements
We audited the Dolores Frances Affordable Housing project, based on a citizen complaint and a suggestion from the U.S. Department of Housing and Urban Development’s (HUD) Departmental Enforcement Center. The complaint alleged nonpayment of HUD utility allowances and security deposits, mismanagement of the maintenance department, related parties hired in supervisory positions, and conflict-of-interest vendor contracts by the related party...
Agosto 26, 2016
Report
#2016-LA-1008
The Dolores Frances Affordable Housing Project, Los Angeles, CA, Was Not Administered in Accordance With Its Regulatory Agreement and HUD Requirements
We audited the Dolores Frances Affordable Housing project, based on a citizen complaint and a suggestion from the U.S. Department of Housing and Urban Development’s (HUD) Departmental Enforcement Center. The complaint alleged nonpayment of HUD utility allowances and security deposits, mismanagement of the maintenance department, related parties hired in supervisory positions, and conflict-of-interest vendor contracts by the related party...
Agosto 26, 2016
Report
#2016-LA-1008
The City of Pasadena, CA, Did Not Always Follow Community Development Block Grant Program Requirements
We audited the City of Pasadena’s Community Development Block Grant program due to performance issues identified by the U.S. Department of Housing and Urban Development’s (HUD) Los Angeles Office of Community Planning and Development. Our objective was to determine whether the City administered its program in accordance with applicable HUD rules and requirements. Specifically, we wanted to determine whether its projects complied...
Agosto 17, 2016
Report
#2016-LA-1007
Officials of the Rochester Housing Authority, Rochester, NY, Generally Administered the Housing Choice Voucher Program in Accordance with HUD Regulations
We audited the Rochester Housing Authority’s Housing Choice Voucher program to address our goal to contribute to improving the U.S. Department of Housing and Urban Development’s (HUD) execution of its fiscal responsibilities. We selected this auditee based on a risk analysis of public housing agencies administered by the HUD Buffalo field office, which considered, among other factors, funds received and the number of program housing units...
Agosto 05, 2016
Report
#2016-NY-1008
The Richmond Housing Authority, Richmond, CA, Mismanaged Its Financial Operations
We audited the Richmond Housing Authority due to a complaint alleging that the Authority submitted falsified documentation to the U.S. Department of Housing and Urban Development (HUD) and allowed the City of Richmond to use the Authority’s HUD funds and the Authority’s assets and that the City charged the Authority for rent and services at an unreasonable price. Our audit objective was to validate complaint allegations regarding whether...
Junio 03, 2016
Report
#2016-LA-1006
The Orange County Housing Authority, Santa Ana, CA, Did Not Adequately Monitor Its Contractors' Performance of HUD's Housing Quality Standards Inspections
We audited the Orange County Housing Authority’s monitoring of its contractors’ performance of housing quality standards inspections of its mobility out units due to inadequacies identified in another review of the Authority’s Housing Choice Voucher program’s housing quality standards. The Authority contracted out the administration and housing quality standards inspections for its mobility out housing units, Housing Choice Voucher...
Mayo 13, 2016
Report
#2016-LA-1005
The Richmond Housing Authority, Richmond, CA, Did Not Always Procure Services and Manage Rents in Accordance With HUD Requirements
We audited the Richmond Housing Authority due to a complaint alleging that the Authority violated procurement requirements related to legal and accounting services and wrote off tenant debts improperly. The objective of the audit was to determine whether the Authority procured goods and services and managed tenant rents for its public housing program in accordance with U.S. Department of Housing and Urban Development (HUD) requirements....
Abril 28, 2016
Report
#2016-LA-1004
The Orange County Housing Authority, Santa Ana, CA, Did Not Always Ensure That Housing Units Met HUD’s Housing Quality Standards
We audited the Orange County Housing Authority’s Housing Choice Voucher program’s housing quality standards primarily due to the Orange County district attorney’s investigation into allegations that Authority inspectors conducted personal business during the work day. These allegations resulted in concerns that inspections may not have been thorough to ensure housing units met HUD standards. Our objective was to determine whether...
Abril 21, 2016
Report
#2016-LA-1003
New York State Did Not Always Disburse Community Development Block Grant Disaster Recovery Funds in Accordance With Federal and State Regulations
We completed a review of the State of New York Governor’s Office of Storm Recovery’s administration of the Small Business Grants and Loans program funded with Community Development Block Grant Disaster Recovery (CDBG-DR) funds provided by the U.S. Department of Housing and Urban Development (HUD). The objectives of the audit were to determine whether State officials (1) approved and disbursed CDBG-DR funds for the Small Business Grants...
Marzo 29, 2016
Report
#2016-NY-1006
The City of New York, NY, Generally Disbursed Community Development Block Grant Disaster Recovery Funds for Its Temporary Disaster Assistance Program in Accordance With Federal Regulations
We audited the City of New York, Office of Management and Budget’s administration of its Temporary Disaster Assistance Program (TDAP) funded with Community Development Block Grant Disaster Recovery (CDBG-DR) funds provided by the U.S. Department of Housing and Urban Development (HUD) to assist in the disaster recovery and rebuilding efforts resulting from Hurricane Sandy. The disaster recovery funds were authorized by Congress under the...
Marzo 10, 2016
Report
#2016-NY-1005
The Lower Manhattan Development Corporation, New York, NY, Generally Administered CDBG Disaster Recovery Assistance Funds in Accordance With HUD Regulations
We performed the 20th review of the Lower Manhattan Development Corporation’s (LMDC) administration of the $2.783 billion in Community Development Block Grant (CDBG) Disaster Recovery funds awarded to the State of New York in the aftermath of the September 11, 2001, terrorist attacks on the World Trade Center in New York City. The objective of the audit was to determine whether LMDC disbursed CDBG Disaster Recovery funds in accordance...
Febrero 18, 2016
Report
#2016-NY-1004
The County of Riverside, CA, Did Not Always Support the Eligibility of Its Community Development Block Grant Program Expenses
We audited the County of Riverside’s Community Development Block Grant program due to the delayed expenditure of funds for fiscal year 2014 and previous audit findings regarding policies and procedures. The Office of Inspector General had conducted a review of the County and identified issues with its program-specific policies and procedures, which were addressed (audit report number 2010-LA-1004). Our objective was to determine...
Febrero 17, 2016
Report
#2016-LA-1002
The City of Rochester, NY Did Not Always Administer Its Community Development Block Grant Program in Accordance With HUD Requirements
We audited the City of Rochester’s Community Development Block Grant (CDBG) program to address our audit plan priority to improve financial management controls over CDBG grants. We selected this grantee based on a risk analysis of grantees administered by the U.S. Department of Housing and Urban Development’s (HUD) Buffalo field office, which considered funds received and the risk score assigned by HUD. The City received more than $...
Febrero 04, 2016
Report
#2016-NY-1003
The City of Niagara Falls, NY Had Weaknesses in Controls Over CDBG-Funded Subgrantee Administered Rehabilitation Activities
We reviewed the City of Niagara Falls’ Community Development Block Grant (CDBG) program. We selected this auditee based on our risk assessment of CDBG grantees administered through the Buffalo, NY, field office, which considered the City’s funding, HUD’s risk assessment of the City, and prior Office of Inspector General (OIG) audits. The City received more than $2.2 million in each of its program years 2013 and 2014; was ranked...
Enero 06, 2016
Report
#2016-NY-1002
loanDepot's FHA-Insured Loans With Golden State Finance Authority Downpayment Assistance Gifts Did Not Always Meet HUD Requirements
We audited loanDepot, LLC, 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 containing ineligible downpayment assistance gifts. The focus on loans with Golden State Finance Authority (Golden State) gifts was a result of a separate audit (2015-LA-1009) on loanDepot’s use of...
Septiembre 30, 2015
Report
#2015-LA-1010
The City of Richmond, CA, Did Not Adequately Support Its Use of HUD-Funded Expenses for Its Filbert Phase 1 and Filbert Phase 2 Activities
We reviewed the City of Richmond’s Filbert Phase 1 and Filbert Phase 2 activities in response to the U.S. Department of Housing and Urban Development’s (HUD) San Francisco Office of Community Planning and Development’s and HUD’s Office of Program Enforcement’s concerns over the City’s administration of its HOME Investment Partnerships Program, Community Development Block Grant (CDBG), and CDBG Recovery (CDBG-R) funding of Filbert Phase 1...
Septiembre 30, 2015
Memorandum
#2015-LA-1803
loanDepot’s FHA-Insured Loans With Downpayment Assistance Funds Did Not Always Meet HUD Requirements
We audited loanDepot 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 containing ineligible downpayment assistance gifts. We selected loanDepot due to its high volume of loans with downpayment assistance funds. Our objective was to determine whether loanDepot originated FHA...
Septiembre 30, 2015
Report
#2015-LA-1009
Morris Park Did Not Always Comply With Its Regulatory Agreement and HUD Requirements
We audited Morris Park Nursing and Rehabilitation Center based on a risk assessment we performed on nursing homes located in New York and New Jersey. Morris Park has a Section 232 HUD-insured loan in the amount of $7.4 million. The objective of the audit was to determine whether Morris Park officials managed funds in compliance with the regulatory agreement and applicable HUD requirements.
Morris Park officials generally managed...
Septiembre 30, 2015
Report
#2015-NY-1012