We audited Luther Towers II because it was a high-risk multifamily project that received low inspection and financial assessment scores on our multifamily risk assessment for projects within our region and we had never audited it.  Our audit objective was to determine whether the owner managed the project in accordance with its regulatory agreement and U.S. Department of Housing and Urban Development (HUD) requirements. The owner of Luther...

An independent public accountant performed audits of the Willow Run (FHA no. 092-44100) and Willow Run II (FHA no. 092-35650) multifamily properties for the years 2005, 2006, 2007, and 2008 under the name of The Blackwing Group, LLC.  According to the Minnesota Board of Accountancy, neither the independent public accountant nor The Blackwing Group, LLC, had ever been licensed to perform public accounting engagements in the State of...

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted the U.S. Attorney’s Office for the District of Minnesota in a civil investigation of Willow Run Partners L.P. and Willow Run II Partners L.P.  Willow Run Partners L.P. was the owner of Willow Run I Apartments, and Willow Run II Partners L.P. was the owner of Willow Run II Apartments.  Our investigation began as a result of a...

We audited the Virgin Islands Housing Authority’s Section 8 Housing Choice Voucher program’s housing quality standards as part of the activities in our fiscal year 2015 audit plan.  We selected the Authority because it had a large program receiving more than $14 million in 2014. Our audit objective was to determine whether the Authority’s inspection process adequately ensured that its units complied with housing quality standards. The...

We audited Virgin Islands Community AIDS Resource & Education, Inc.’s (VICARE) Housing Opportunities for Persons With AIDS (HOPWA) program.  This audit was the result of a referral from the San Juan Office of Community Planning and Development.  The objective of the audit was to determine whether VICARE spent HOPWA funds in accordance with the U.S. Department of Housing and Urban Development (HUD) requirements and for eligible...

We audited the Wilmington Housing Authority's administration of its Public Housing Capital Fund Recovery Act-Funded Formula and Competitive Grants that it received under the American Recovery and Reinvestment Act of 2009 (Recovery Act). We selected the Authority for audit because it received a $5.2 million Public Housing Capital Fund Formula (Recovery Act-Funded) grant and two Public Housing Capital Fund Competitive (Recovery Act-Funded)...

The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General audited the Public Housing Agency of the City of Saint Paul’s (Agency) Section 8 Project-Based Voucher program (program). The audit was part of the activities in our fiscal year 2009 annual audit plan. We selected the Agency’s program based upon our internal audit survey of HUD’s oversight of the program and our analysis of risk factors relating to the...

We audited the Wilmington Housing Authority’s (Authority) administration of its housing quality standards inspection program for its Section 8 Housing Choice Voucher program as part of our fiscal year 2009 audit plan. The audit objective was to determine whether the Authority adequately administered its Section 8 housing quality standards inspection program to ensure that its program units met housing quality standards in accordance with U.S....

We audited the Newark, Delaware, branch office (branch office) of J.P. Morgan Chase bank (J.P. Morgan Chase), a supervised direct endorsement lender approved to originate Federal Housing Administration (FHA) single-family mortgage loans. We selected the branch office because its default rate was above the state’s average default rate. Our objective was to determine whether J.P. Morgan Chase complied with U.S. Department of Housing and Urban...

We audited the Newark, Delaware, branch office (branch office) of Wells Fargo Home Mortgage (Wells Fargo). The branch office is mainly responsible for underwriting loans for 22 Wells Fargo sales branch offices in Pennsylvania. We selected the branch office because of its relatively high default rate, compared with the average default rate for the state of Pennsylvania. Our objective was to determine whether the branch office complied with U.S....