The City of Chicago’s Department of Public Health, Chicago, IL, Did Not Administer Its Lead Hazard Reduction Demonstration Grant Program in Accordance With HUD’s and Its Own Requirements
We audited the City of Chicago’s Department of Public Health’s (Department) Lead Hazard Reduction Demonstration Grant Program based on our analysis of the U.S. Department of Housing and Urban Development’s (HUD) Office of Lead Hazard Control and Healthy Homes grantees in Region 5’s jurisdiction. Our audit objective was to determine whether the Department administered the Program in accordance with HUD’s and its own requirements.
The...
Septiembre 30, 2018
Report
#2018-CH-1010
The Housing Authority of the County of Lake, Grayslake, IL, Did Not Always Comply With HUD’s and Its Own Requirements Regarding the Administration of Its Housing Choice Voucher Program
We audited the Housing Authority of the County of Lake, IL’s Housing Choice Voucher Program based on the activities included in our 2018 annual audit plan and our analysis of risk factors related to the public housing agencies in Region 5’s jurisdiction. Our audit objective was to determine whether the Authority appropriately managed its program in accordance with the U.S. Department of Housing and Urban Development’s (HUD) and its own...
Septiembre 25, 2018
Report
#2018-CH-1007
Final Civil Action: BSR Trust, LLC, Settled Allegations of Making False Claims Related to Section 8 Housing Assistance Payments
On April 17, 2018, the Office of Program Enforcement issued a letter stating that it had reached a resolution under a Program Fraud Civil Remedies Act of 1986[1] case regarding Summit Bradford Apartments located in Tulsa, OK, following its review. The Government alleged that the owner submitted 40 false claims under the Act.
The Office of Program Enforcement included with its letter the March 28, 2018, settlement agreement with BSR...
Mayo 21, 2018
Memorandum
#2018-FW-1801
DuPage County, IL, Did Not Always Comply With Federal Requirements Regarding the Administration of Its Community Development Block Grant Disaster Recovery Program
We audited DuPage County’s Community Development Block Grant Disaster Recovery program. The audit was part of the activities in our fiscal year 2017 annual audit plan. We selected the County’s program for review because the County had spent the most program funds authorized under the Disaster Relief Appropriations Act of 2013 in Region 5’s jurisdiction.[1] Our objective was to determine whether the County administered its...
Septiembre 30, 2017
Report
#2017-CH-1010
The Menard County Housing Authority, Petersburg, IL, Did Not Comply With HUD’s and Its Own Requirements Regarding the Administration of Its Housing Choice Voucher Program
We audited the Menard County Housing Authority’s Housing Choice Voucher program based on the activities included in our 2017 annual audit plan and our analysis of risk factors related to the public housing agencies in Region 5’s jurisdiction. Our audit objective was to determine whether the Authority complied with the U.S. Department of Housing and Urban Development’s (HUD) and its own requirements regarding the administration of its...
Septiembre 28, 2017
Report
#2017-CH-1007
Majestic Management, LLC, St. Louis, MO, a Management Agent for the East St. Louis Housing Authority, Mismanaged Its Public Housing Program
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited Majestic Management, LLC’s management agent activities for the public housing program at the East St. Louis Housing Authority. Our objective was to determine whether Majestic Management made only eligible and supported payments for payroll, complied with procurement requirements, and properly performed initial tenant certifications and annual...
Septiembre 26, 2017
Report
#2017-KC-1003
MB Financial Bank, Rosemont, IL, Did Not Always Follow HUD’s Underwriting Requirements but Generally Complied With Quality Control Requirements
We audited MB Financial Bank, a Federal Housing Administration (FHA)-approved direct endorsement lender, as part of our efforts to protect the integrity of the U.S. Department of Housing and Urban Development’s (HUD) single-family housing mortgage insurance programs. We selected MB Financial for review based on an analysis of underwriting and default data maintained by HUD. Our objective was to determine whether MB Financial...
Septiembre 20, 2017
Report
#2017-NY-1011
The Cooperative and Management Agent Lacked Adequate Controls Over the Operation of Lakeview East Cooperative, Chicago, IL
We audited the U.S. Department of Housing and Urban Development’s (HUD) resident home-ownership program grant for Lakeview East Cooperative (project) based on the results of a risk assessment of multifamily housing programs in Region 5’s jurisdiction (States of Illinois, Indiana, Michigan, Minnesota, Ohio, and Wisconsin). The audit was part of the activities in our fiscal year 2017 audit plan. Our objective was to determine whether...
Septiembre 05, 2017
Report
#2017-CH-1006
Stone Terrace Apartments, Chicago, IL, Did Not Always Comply With HUD’s Requirements Regarding the Administration of Its Section 8 Housing Assistance Payments Program
We audited the Stone Terrace Apartments’ Section 8 housing assistance payments program based on a citizen’s complaint alleging mismanagement of its housing assistance payments contract. The audit was part of the activities in our fiscal year 2017 annual audit plan. Our audit objective was to determine whether the management agent administered the project’s program in accordance with the owner’s contract with the U.S. Department of...
Agosto 25, 2017
Report
#2017-CH-1005
Alpine First Preston Joint Venture II, LLC, Alpine, UT, Did Not Always Comply With Its Contract With HUD and Its Own Requirements for the Marketing and Sale of HUD-Owned Properties in the State of IL
We audited Alpine First Preston Joint Venture II, LLC, a contracted asset manager in HUD’s real estate-owned Management and Marketing III program, as part of the activities included in our 2017 annual audit plan and because it was the sole contractor to market and sell U.S. Department of Housing and Urban Development (HUD) owned properties located in Illinois. Our audit objective was to determine whether Alpine complied with its contract with...
Agosto 11, 2017
Report
#2017-CH-1004
The Loudoun County Department of Family Services, Leesburg, VA, Did Not Always Ensure That Its Program Units Met Housing Quality Standards
We audited the Loudoun County Department of Family Services’ Housing Choice Voucher program because (1) we received a complaint alleging housing quality standards problems with a housing unit participating in the County’s program, (2) the County had 688 vouchers and received more than $6.4 million in fiscal year 2016, and (3) we had not audited its program. Our audit objective was to determine whether the County ensured that its Housing...
Junio 09, 2017
Report
#2017-PH-1004
The Yorkville Cooperative, Fairfax, VA, Did Not Administer Its HUD-Insured Property and Housing Assistance Contract According to Applicable Requirements
We audited the Yorkville Cooperative’s administration of its U.S. Department of Housing and Urban Development (HUD)-insured property and housing assistance contract based on a complaint alleging that the Cooperative (1) spent excessive amounts for maintenance and repairs and (2) did not recertify tenants in a timely manner. Our objective was to determine whether the Cooperative administered its HUD-insured property and housing assistance...
Mayo 22, 2017
Report
#2017-PH-1003
The Housing Authority of the City of Tulsa, Tulsa, OK, Did Not Always Correctly Compute Housing Assistance Payments
We audited the Housing Authority of the City of Tulsa’s administration of its Section 8 program. We selected the Authority based on reports generated by the U.S. Department of Housing and Urban Development’s (HUD) Enterprise Income Verification system (EIV). The Authority had indicators of noncompliance with program requirements. Specifically, EIV reported an annualized income discrepancy of more than $1.6 million for 328...
Mayo 17, 2017
Report
#2017-FW-1007
Judgment Imposed on the Former President and Founder of MDR Mortgage Corporation Regarding Allegations of Failing To Comply With HUD’s Federal Housing Administration Requirements
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), in coordination with the U.S. Department of Justice’s Civil Division and the U.S. Attorney’s Office for the Northern District of Illinois’ Eastern Division, conducted a joint review of the former president and founder of MDR Mortgage Corporation.
MDR Mortgage provided annual verifications to HUD in 2006, 2007, and 2008, certifying that none of its...
Marzo 31, 2017
Memorandum
#2017-CH-1801
The Condominium Association and Management Agent Lacked Adequate Controls Over the Operation of West Park Place Condominium, Chicago, IL
We audited the U.S. Department of Housing and Urban Development’s (HUD) resident home-ownership program grant for West Park Place Condominium (project) based on the results of a risk assessment of multifamily housing programs in Region 5’s jurisdiction (States of Illinois, Indiana, Michigan, Minnesota, Ohio, and Wisconsin) and the activities in our fiscal year 2016 annual audit plan. Our objective was to determine whether the West Park...
Septiembre 30, 2016
Report
#2016-CH-1009
The State of Oklahoma Did Not Obligate and Spend Its Community Development Block Grant Disaster Recovery Funds in Accordance With Requirements
We audited the State of Oklahoma because it received $93.7 million in Community Development Block Grant Disaster Recovery (CDBG-DR) allocations for presidentially declared disasters that occurred in 2011, 2012, and 2013. The substantial amount of CDBG-DR funding required a review of the State’s program. Our objective was to determine whether the State obligated and spent its grant in accordance with requirements.
The State...
Septiembre 30, 2016
Report
#2016-FW-1010
Mortgage Services III, LLC, Bloomington, IL, Generally Complied With HUD’s Underwriting and Quality Control Requirements
We audited Mortgage Services III, LLC, a Federal Housing Administration (FHA)-approved direct endorsement lender, as part of the activities in our fiscal year 2016 annual audit plan. We selected Mortgage Services for review based on an analysis of data in the U.S. Department of Housing and Urban Development’s (HUD) Single Family Data Warehouse system for single-family lenders with home offices in Region 5’s jurisdiction. ...
Septiembre 30, 2016
Report
#2016-CH-1011
The Richmond Redevelopment and Housing Authority, Richmond, VA, Did Not Always Charge Eligible and Reasonable Central Office Cost Center Fees
We audited the fees that the Richmond Redevelopment and Housing Authority charged to its U.S. Department of Housing and Urban Development (HUD) housing programs for central office cost center services based on issues identified during our prior audit of the Authority. Our objective was to determine whether the Authority charged fees to its HUD housing programs for central office cost center services that were eligible, reasonable, and...
Agosto 17, 2016
Report
#2016-PH-1005
The Muscogee (Creek) Nation, Okmulgee, OK, Did Not Always Comply With HUD Requirements
We audited the Muscogee (Creek) Nation’s use of U.S. Department of Housing and Urban Development (HUD) funds in accordance with the Office of Inspector General’s goal to ensure the integrity and soundness of HUD’s Public and Indian Housing programs and to follow up on weaknesses identified in other reviews. The audit objective was to determine whether the Nation complied with HUD requirements when it housed families and procured contracts...
Julio 08, 2016
Report
#2016-FW-1003
The Alton Housing Authority, Alton, IL, Improperly Phased In Flat Rents for Its Public Housing Program
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, audited the Alton Housing Authority because it appeared to have flat rents set at a rate below 80 percent of the fair market rent in that area based on the information available in the Public and Indian Housing Information Center system. Our objective was to determine whether the Authority complied with HUD’s flat rent requirements.
The Authority did...
Mayo 19, 2016
Report
#2016-KC-1004