We audited the Lexington-Fayette Urban County Housing Authority’s Section 8 Housing Choice Voucher program based on our risk assessment of all Kentucky public housing agencies and as part of the activities in our annual audit plan.  Our audit objective was to determine whether the Authority administered its program units in accordance with the U.S. Department of Housing and Urban Development’s (HUD) and its own requirements. The Authority...

We audited the Lexington-Fayette Urban County Housing Authority’s Rental Assistance Demonstration Program (RAD) conversion to the Section 8 Project-Based Voucher program and compliance with requirements after the conversion.  We selected the Authority for review in accordance with our annual audit plan.  Our audit objective was to determine whether the Authority complied with the U.S. Department of Housing and Urban Development’s (HUD...

We audited the Commonwealth of Kentucky’s (Commonwealth) administration of the U.S. Department of Housing and Urban Development’s (HUD) Neighborhood Stabilization Program (NSP) based on a referral from the Louisville, KY, Office of Community Planning and Development and in accordance with our annual audit plan.  Our objective was to determine whether the Commonwealth administered its NSP1 and NSP3 grants in accordance with HUD’s...

We audited the City of Albuquerque’s Community Development Block Grant (CDBG) program based on our risk analysis and as part of the Office of Inspector General’s annual audit plan to review community planning and development funds.  The audit objective was to determine whether the City administered its CDBG program in accordance with U.S. Department of Housing and Urban Development (HUD) requirements. The City did not always properly...

We audited the Louisville Metro Housing Authority’s Section 8 Housing Choice Voucher program based on our risk assessment of all Kentucky public housing agencies and as part of the activities in our annual audit plan.  Our audit objective was to determine whether the Authority administered its program units in accordance with the U.S. Department of Housing and Urban Development’s (HUD) and its own requirements.  The Authority did not...

We audited the Louisville-Jefferson County Metropolitan Government’s Housing Opportunities for Persons With AIDS (HOPWA) program.  We selected Louisville Metro for review based on a management referral from the U.S. Department of Housing and Urban Development’s (HUD) Louisville, KY, Office of Community Planning and Development and in accordance with our annual audit plan.  Our audit objective was to determine whether Louisville Metro...

We audited the Kentucky Housing Corporation’s administration of the U.S. Department of Housing and Urban Development’s (HUD) Loss Mitigation program for loans insured by the Federal Housing Administration (FHA).  We selected the Corporation based on our analysis of risk factors of single-family loan servicers in Region 4’s jurisdiction.  Our audit objective was to determine whether the Corporation accurately reported the default...

At the request of the U.S. Department of Housing and Urban Development’s (HUD) Office of Public Housing in Albuquerque, NM, we conducted a review of the Mesilla Valley Public Housing Authority.  The Office of Public Housing estimated that the Authority could lose nearly $1 million by the end of 2014 because it had leased only 983 of its 1,607 vouchers.  Our objectives were to determine the extent, cause, and impact of not leasing all...

We reviewed the City of Albuquerque, Department of Family and Community Services’ Continuum of Care program.  We initiated the review based on a complaint alleging misconduct in the City’s program.  Specifically, the complainant alleged the City’s Continuum of Care failed to comply with conflict of interest and procurement requirements, did not maintain accurate Homeless Management Information System reports, and expended funds for...

We audited the public housing program of the Housing Authority of the City of Spartanburg, SC, because of a citizen’s complaint.  Our objective was to determine whether the Authority’s performance in the areas of financial operations, procurement, and inventory practices met HUD requirements. The Authority used HUD program funds for ineligible or unsupported expenses, and failed to maintain an accurate accounting and financial control...

We assisted the U.S. Attorney’s Office for the Eastern District of Kentucky in the investigation of NDC Real Estate Management, Inc. (NDC).  The investigation began due to a qui tam filing in the U.S. District Court for the Eastern District of Kentucky.  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 individual on behalf of the...

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

We audited the Truth or Consequences Housing Authority of Truth or Consequences, NM, in response to an anonymous complaint alleging that the Authority inappropriately transferred ownership of some of its properties to the New Mexico Housing and Community Development Corporation and used its assets to support the Corporation’s activities. Our audit objective was to determine whether the Authority had adequate controls to ensure that it complied...

We audited the Grants Housing Authority located in Grants, NM, at the request of U.S. Department of Housing and Urban Development’s (HUD) Public Housing Program Center in Albuquerque, NM.  Our objective was to determine whether the Authority used its capital funds and operating funds for allowable costs, performed contracting activities in accordance with program requirements, and correctly processed and paid for Section 8 housing choice...

We audited Weststar Mortgage Corporation, a Federal Housing Administration (FHA) nonsupervised direct endorsement lender located in Albuquerque, NM. We selected Weststar for review based on a risk assessment of lenders in New Mexico. Our objective was to determine whether Weststar complied with U. S. Department of Housing and Urban Development (HUD) and FHA loan origination requirements for loans on which the borrowers defaulted and FHA paid...

As part of the Office of Inspector General’s (OIG) nationwide effort to review the foreclosure practices of the five largest Federal Housing Administration (FHA) mortgage servicers (Bank of America, Wells Fargo Bank, CitiMortgage, JP Morgan Chase, and Ally Financial, Incorporated) we reviewed Wells Fargo’s foreclosure and claims processes. In addition to this memorandum, OIG issued separate memorandums for each of the other four reviews. OIG...

In accordance with our goal to review funds provided under the American Recovery and Reinvestment Act of 2009, we audited the Housing Authority of the City of Las Cruces Public Housing Capital Fund Stimulus (formula) Recovery Act-funded activities. Specifically, our objectives were to determine whether the Authority (1) properly followed Recovery Act rules and regulations when obligating and expending its Recovery Act formula grant funds, (2)...

We reviewed the Louisville-Jefferson County Metropolitan Government’s administration of its Homelessness Prevention and Rapid Re-Housing Program (HPRP) and Community Development Block Grant-Recovery (CDBG-R) program. We selected Louisville Metro for review because it received the largest grants in Kentucky with the exception of the State of Kentucky, and the U.S. Department of Housing and Urban Development (HUD) had not conducted monitoring of...

We performed a limited review of Wells Fargo Home Mortgage (Wells Fargo) as a result of our internal audit of the Federal Housing Administration’s (FHA) Home Affordable Modification Program (HAMP). During the audit, we visited Wells Fargo and reviewed a limited number of loans to determine whether the National Servicing Center implemented and operated FHA-HAMP in accordance with rules and regulations. Our objective for this limited review was...

In accordance with our goal to review funds provided under the American Recovery and Reinvestment Act of 2009 (Recovery Act), we audited Albuquerque Housing Services’ (Housing Services) Public Housing Capital Fund Stimulus (formula) Recovery Act-funded activities. Our audit objectives were to determine whether Housing Services (1) properly obligated and expended its Recovery Act formula grant in accordance with requirements, (2) followed the...