We completed the 18th audit report in our ongoing review of the Lower Manhattan Development Corporation’s (LMDC) administration of the $2.783 billion in Community Development Block Grant (CDBG) Disaster Recovery Assistance funds awarded to the State of New York in the aftermath of the September 11, 2011, terrorist attacks on the World Trade Center in New York City.  During the audit period, April 1, 2012 through March 31, 2013, LMDC...

We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of property flipping as part of the activities in our fiscal year 2013 annual audit plan, which includes contributing to the protection of the integrity of housing insurance and guarantee programs.  Our audit objective was to determine whether HUD had adequate oversight of its property-flipping waiver. HUD did not always (1) ensure that lenders complied with...

We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of its Home Equity Conversion Mortgage (HECM) program based on our strategic goal to improve the integrity of HUD’s single-family insurance programs and because of residency issues identified in prior audits of the HECM program.  Our objective was to determine whether HUD’s Office of Single Family Housing had effective controls to ensure that HECM loan...

The U.S. Department of Housing and Urban Development’s (HUD), Office of Inspector General reviewed HUD’s Federal Housing Administration (FHA) loss mitigation program.  We initiated this audit due to our concern that FHA might have incurred costs while allowing lenders to make large amounts of money by modifying defaulted FHA-insured loans.  Our audit objective was to determine the extent to which loans modified under the FHA program...

The U.S. Department of Housing and Urban Development – Office of Inspector General audited HUD’s Office of Multifamily Housing Programs, based on an internal audit suggestion expressing concern that multifamily property owners took unauthorized distributions or owner advances with no consequence. Our audit objective was to determine whether HUD enforced the requirements of the regulatory agreements and HUD handbooks that pertain to owner...

We audited the U.S. Department of Housing and Urban Development’s (HUD) process for awarding asset repositioning fees (ARF) to public housing agencies (PHA) with approved demolition and dispostion projects.  We initiated this review based upon issues disclosed during our review of Public Housing Capital Fund program grants to PHAs with approved demolition and dispostion projects.  The audit objective was to determine whether HUD had...

We assisted the U.S. Attorney’s Office, Southern District of New York, in conducting an investigation of JPMorgan Chase Bank, N.A., and JPMorgan Chase & Co. (Chase).  The investigation began due to a qui tam filing in the U.S. District Court for the Southern District of New York.  The False Claims Act allows private persons to file suit for violations of the False Claims Act on behalf of the Government.  A suit filed by an...

We audited HUD’s Office of Native American Programs’ (ONAP) Indian Community Development Block Grant (ICDBG) program grant closeout process based on data received from Southwest ONAP and additional analysis that raised concerns regarding ONAP’s oversight of the grant closeout process.  Our objective was to determine whether ONAP had adequate controls to ensure the timely closeout of program grants. HUD’s ONAP did not have adequate controls...

We audited HUD’s controls over its Federal Housing Administration (FHA) loan indemnification recovery process based on the OIG’s analysis of HUD data that indicated indemnification losses were not always recovered for FHA single-family loans.  Our objective was to determine whether HUD had adequate controls in place to monitor indemnification agreements and recover losses on FHA single-family loans. HUD did not always bill lenders for FHA...

We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of its Home Equity Conversion Mortgage (HECM) program and found that 33 borrowers had more than 1 loan under the program.  Having multiple loans violated program requirements because HUD requires borrowers to reside in the mortgaged residence as their principal residence and borrowers may not have more than one principal residence at the same time.  We...

We completed a review of Palladia, Inc.’s administration of its Supportive Housing Program.  We selected Palladia for review based on a request from the U.S. Department of Housing and Urban Development’s (HUD) New York City Office of Community Planning and Development.  The objectives of the audit were to determine whether Palladia officials (1) carried out program-assisted activities with the appropriate beneficiaries, (2) expended...

We audited the Niagara Falls Housing Authority’s HOPE VI grant program based on an Office of Inspector General risk analysis and the amount of funding the Authority received.  The objectives of the audit were to determine whether the Authority administered its HOPE VI grant program and activities in accordance with U.S. Department of Housing and Urban Development (HUD) and HOPE VI grant program requirements. The Authority did not always...

We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of its Home Equity Conversion Mortgage (HECM) program and found that 33 borrowers had more than 1 loan under the program.  Having multiple loans violated program requirements because HUD requires borrowers to reside in the mortgaged residence as their principal residence and borrowers may not have more than one principal residence at the same time.  We...

We audited the U.S. Department of Housing and Urban Development’s (HUD) methodology and monitoring regarding the Office of Public Housing’s asset management fees and central office cost centers due to our concerns over potential misspending by public housing authorities and the lack of restrictions in the use of such funds.  Our objective was to determine how HUD arrived at the asset management fee limits in its Public Housing Operating...

We reviewed the U.S. Department of Housing and Urban Development, (HUD), Office of Public and Indian Housing’s Veterans Affairs Supportive Housing (VASH) program regarding HUD’s implementation and monitoring.  We initiated our review because there had been no prior Office of Inspector General reviews of the HUD-VASH program.  Our objective was to determine whether HUD’s implementation and monitoring of the program was adequate. ...

The Inspector General Act of 1978 requires the Inspector General to prepare semiannual reports summarizing the activities of the Office of Inspector General for the preceding six-month periods. The semiannual reports are intended to keep the Secretary and the Congress fully informed of significant findings, progress the Agency has made and recommendations for improvement.

We audited the U.S. Department of Housing and Urban Development’s (HUD) Inventory Management System-Public and Indian Housing Information Center (IMS/PIC) inventory data related to public housing demolition and disposition projects.  The objective of the audit was to determine whether HUD adequately monitored the demolition and disposition projects to ensure the reliability of IMS/PIC inventory data and awarded appropriate Capital Fund...

Based upon a complaint, we reviewed two Intergovernmental Personnel Act (IPA) agreements as part of a joint assignment with our Office of Investigation and Office of Legal Counsel.  Our objective was to determine whether the U. S. Department of Housing and Urban Development (HUD) violated the Antideficiency Act (ADA)  when it obtained the services of two people through IPA agreements.  During the review, we identified potential...

We audited the City of Elmira, NY’s administration of its Community Development Block Grant (CDBG) program based on our risk analysis and funding received by the City.  The objectives of the audit were to determine whether the City (1) ensured that program activities were adequately documented and administered in accordance with U.S. Department of Housing and Urban Development (HUD) regulations, and (2) expended CDBG funds for eligible...

We completed a review of the New York City Housing Authority’s administration of its Section 8 Housing Choice Voucher program.  We selected the Authority based on indicators from the U.S. Department of Housing and Urban Development’s (HUD) monitoring reports.  The objectives of the audit were to determine whether the Authority administered its Section 8 Housing Choice Voucher program in accordance with HUD regulations and made housing...