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...

We audited the Greensboro Housing Authority’s Rental Assistance Demonstration Program (RAD) conversion.  Our objective was to determine whether the Authority administered its RAD conversion in accordance with U.S. Department of Housing and Urban Development (HUD) requirements.  Specifically, we wanted to determine whether the Authority (1) executed appropriate written agreements, (2) ensured that project financing sources were secured...

We audited the North Carolina Department of Commerce’s Small Cities Community Development Block Grant as part of the activities in our annual audit plan.  Our audit objectives were to determine whether the Department of Commerce (1) awarded funds to local governments that met a CDBG national objective, (2) spent funds only for activities that were eligible and supported, and (3) included all methods of distribution in its action plan. The...

We audited the City of Chattanooga’s Emergency Solutions Grants (ESG) program.  We selected the City for review in accordance with our annual audit plan.  Our audit objective was to determine whether the City administered its ESG program in accordance with HUD’s requirements. The City did not always administer its ESG program in accordance with HUD’s requirements.  Specifically, it did not ensure that program expenditures were...

We audited the Lexington Housing Authority’s Rental Assistance Demonstration Program (RAD) conversion.  We selected the Authority based on concerns from the U.S. Department of Housing and Urban Development’s (HUD) North Carolina State Office of Public Housing and a request from the Housing Authority’s Board of Commissioners.  Our audit objective was to determine whether the Authority administered its RAD program in accordance with HUD...

We audited Shelby County’s Community Development Block Grant Disaster Recovery (CDBG-DR) grant.  We selected the County for review in accordance with our annual audit plan and because the County received more than $7.4 million in funding to recover from severe storms, tornadoes, straight-line winds, and flooding that occurred in April 2011.  Our audit objective was to determine whether the County ensured that (1) funds were spent only...

We audited the Sanford Housing Authority’s Section 8 Housing Choice Voucher Programs as a result of problems identified during a technical assistance review performed by the U.S. Department of Housing and Urban Development’s (HUD) North Carolina State Office of Public Housing.  Additionally, our audit is in keeping with our annual audit plan to ensure that public housing agencies sufficiently administer HUD’s programs in accordance with...

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted the U.S. Department of Justice, Washington, DC, and the U.S. Attorney’s Office, District of Colorado, in the civil investigation of Franklin American Mortgage Company.  Franklin American has its principal place of business in Franklin, TN.  Franklin American became an FHA-approved direct endorsement lender in 1995.  As a direct...

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), investigated Cunningham and Company to determine whether it violated HUD requirements when underwriting loans insured by the Federal Housing Administration (FHA).  Cunningham is an FHA mortgage lender, formerly located in Greensboro, NC. Based on OIG’s review, HUD contends that Cunningham may be liable under the Program Fraud Civil Remedies Act...

We audited the Sanford Housing Authority’s procurement and financial operations.  We selected the Authority based on concerns from the U.S. Department of Housing and Urban Development’s (HUD) North Carolina State Office of Public Housing, following a technical assistance review performed. The technical assistance review identified issues with the Authority’s procurement practices and financial operations, among other items.  The...

We audited the Housing Authority of the City of Durham’s Section 8 Housing Choice Voucher program’s housing quality standards based on our recent audit of the Authority’s program, during which potential issues with the Authority’s inspections were noted, and as part of our annual audit plan.  Our audit objective was to determine whether the Authority ensured that program units met the U.S. Department of Housing and Urban Development’s (HUD...

We audited the Housing Authority of the City of Durham’s Section 8 Housing Choice Voucher program based on a hotline citizen complaint and as part of the activities in our fiscal year 2015 annual audit plan.  Our objective was to determine whether the Authority administered its program in accordance with the U.S. Department of Housing and Urban Development’s (HUD) and its own requirements and whether the complaint was valid. The Authority...

We reviewed the disbursement of project funds for seven of the Sections 202 and 811 supportive housing projects for the elderly and persons with disabilities managed by Taliafaro, Inc.  We initiated the audit under the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General’s annual audit plan.  Our objective was to determine whether Taliafaro used project funds appropriately and operated multifamily...

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG) assisted the U.S. Department of Justice, Washington, DC, and the U.S. Attorney’s Office, Northern District of Georgia, in conducting a review of First Tennessee has its principal place of business in Memphis, TN and is a wholly owned subsidiary of First Horizon Financial Corporation.  First Tennessee became an FHA-approved direct endorsement...

We audited the City of High Point’s lead-based paint procurement and eligibility operations.  We selected the Authority based on concerns from the U.S. Department of Housing and Urban Development’s (HUD) Office of Healthy Homes and Lead Hazard Control.  Our audit objective was to determine whether the City administered its lead-based paint hazard control grants in accordance with HUD’s regulations and grant requirements for...

Our office assisted the U.S. Department of Justice (DOJ), U.S. Attorney’s Office, Eastern District of New York, in conducting an investigation of Bank of America’s origination of mortgage loans insured by the Federal Housing Administration (FHA) from May 1, 2009, through March 31, 2012.   On August 20, 2014, Bank of America entered into a settlement agreement to pay $16.65 billion, of which $9.65 billion resolved pending and potential...

We audited Peoples Home Equity, Inc.(Peoples), a Federal Housing Administration (FHA) approved nonsupervised direct endorsement lender located in Brentwood, TN.  We selected Peoples based on its high default rates.  The audit was part of our annual audit plan to review single family programs and lenders.  Our audit objectives were to determine whether Peoples complied with HUD requirements when it originated and underwrote FHA...

We audited the Memphis, TN, Housing Authority’s Housing Choice Voucher program as part of the activities in our fiscal year 2014 audit plan.  We selected the Authority because it had a large program, receiving about $40 million in yearly funding, and was part of the OIG’s annual audit plan.  Our objective was to determine whether the Authority’s inspection process adequately ensured that its units were in material compliance with...

We audited the U.S. Department of Housing and Urban Development’s (HUD) Greensboro, NC, Office of Public Housing as part of a nationwide audit of HUD’s oversight of environmental reviews.  We selected the Greensboro Office based on our risk assessment.  Our audit objectives were to determine whether the Greensboro Office of Public Housing ensured that it performed the required reviews and did not release funds until all requirements...

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted the Office of the United States Attorney, Civil Division, of the Eastern District of North Carolina with a review of loans allegedly improperly originated by Numerica Mortgage, LLC.  Numerica was a Federal Housing Administration (FHA) direct endorsement mortgagee.  The allegations originated with the office of the North Carolina...