We audited Rainbow Terrace Apartments based on our analysis of risk factors related to multifamily projects in Region 5’s jurisdiction and the activities included in our fiscal year 2018 annual audit plan.  Our objective was to determine whether the project’s owner and management agent operated the project in accordance with the regulatory agreement and the U.S. Department of Housing and Urban Development’s (HUD) requirements. The project...

We audited Hamilton County’s subrecipient agreement with People Working Cooperatively, Inc. (corporation), for a Community Development Block Grant-funded housing repair services program based on a request from the U.S. Department of Housing and Urban Development’s (HUD) Columbus Office of Community Planning and Development concerning information the Office received regarding the program, which it did not have the resources to review.  The...

We audited the Columbus Metropolitan Housing Authority’s Public Housing Operating and Capital Fund programs based on an anonymous complaint to our hotline.  Our audit objective was to determine whether the Authority administered its programs in accordance with the U.S. Department of Housing and Urban Development’s (HUD) requirements. The Authority invested Federal funds in non-HUD-approved investment accounts and did not properly record...

We audited the Cuyahoga Metropolitan Housing Authority’s public housing program based on an anonymous complaint to our hotline.  Our objective was specific to the allegations in the complaint and was to determine whether the Authority (1) engaged in nepotism when hiring staff, (2) used program funds for inappropriate or unreasonable travel expenses, (3) failed to comply with the U.S. Department of Housing and Urban Development’s (HUD) and...

We audited the Yabucoa Volunteers of America Elderly Housing, Inc., Section 202 Supportive Housing for the Elderly Program.  We selected the Yabucoa housing project for review based on concerns regarding the slow progress of the project as noted during the audit of the Puerto Rico Department of Housing multifamily special escrow funds.  The objective of this audit was to determine whether Volunteers used Section 202 funds in...

We audited the Municipality of San Juan’s Emergency Solutions Grant (ESG) program.  We selected the Municipality for review as part of our strategic plan based on the large amount of ESG funds approved and because the U.S. Department of Housing and Urban Development (HUD) classified the Municipality as a high-risk grantee in its 2016 risk assessment.  Our main objective was to determine whether the Municipality administered its ESG...

We audited Mary Scott Nursing Center (project) based on our analysis of risk factors related to the U.S. Department of Housing and Urban Development’s (HUD) multifamily nursing projects 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 annual audit plan.  Our objective was to determine whether the project’s owner and...

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 Massachusetts in the civil investigation of First American Mortgage Trust.  First American has its principal place of business in Brighton, MA, and does business as NXTLoan.Com Corp., a Delaware corporation.  First American is the parent company of NXTL. On October 18, 2016, First...

We audited the Office of the Commissioner for Municipal Affairs’ (OCMA) Puerto Rico State Community Development Block Grant program.  We selected OCMA for review based on concerns regarding the slow progress of the Municipality of San Sebastian’s fine arts center.  The objective of this audit was to determine whether OCMA effectively used State Block Grant funds on a fine arts center that met a national objective of the program and...

We audited the Youngstown Metropolitan Housing Authority’s Housing Choice Voucher program based on the activities included in our 2016 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 Family Self-Sufficiency program and Housing Choice Voucher program files in accordance with the U.S....

We audited the Housing Choice Voucher program at the Boston Housing Authority because of the size of the program, the time that had elapsed since our last audit, and the inherent program risk.  The Authority operates the second largest Housing Choice Voucher program in New England.  In addition, our office had not audited any Authority program since 2010.  The Housing Choice Voucher program is inherently risky as Congress...

We audited the Puerto Rico Department of Housing’s multifamily special escrow funds.  This audit was the result of a referral from the San Juan Office of Multifamily Housing Programs.  The objectives of the audit were to determine whether the Department administered and disbursed its escrow funds in accordance with its memorandum of understanding with the U.S. Department of Housing and Urban Development (HUD) and whether funded...

We audited the Community Development Block Grant Disaster Recovery (CDBG-DR) assistance grant provided to the City of Springfield, MA, by the U.S. Department of Housing and Urban Development (HUD) to assist in disaster recovery and rebuilding efforts resulting from damages caused by presidentially declared disasters.  The audit objective was to determine whether the City properly followed Federal procurement requirements and whether...

Sons of Divine Providence did not properly oversee the HUD-insured nursing home to ensure that it operated in accordance with its regulatory agreement.  By not informing HUD of the lawsuits, the changes in management agents, and the loans, Sons of Divine Providence did not provide HUD the necessary data to understand the risk to the HUD insurance fund.  However, when Sons of Divine Providence sold the nursing home and paid off the HUD...

We audited the Dayton Metropolitan Housing Authority’s Public Housing Capital Fund program.  We selected the Authority’s program for audit based on our analysis of risk factors related to public housing agencies in Region 5’s1  jurisdiction.  The audit was part of the activities in our fiscal year 2016 annual audit plan.  Our objective was to determine whether the Authority complied with the U.S. Department of Housing and...

We audited the Lucas Metropolitan Housing Authority’s public housing program as part of the activities in our fiscal year 2016 annual audit plan.  We selected the Authority based on the results of a risk assessment of housing agencies in Region 5’s1  jurisdiction.  Our objective was to determine whether the Authority complied with the U.S. Department of Housing and Urban Development’s (HUD) and its own procurement requirements....

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted HUD’s Office of Program Enforcement in the civil investigation of American Midwest Mortgage Corporation.  American’s principal place of business is located in Cleveland, OH.  American became an FHA-approved direct endorsement lender on August 28, 1983.  The direct endorsement lender program authorizes private-sector mortgage...

We audited the Municipality of Bayamon’s Emergency Shelter Grants and Emergency Solutions Grants programs.  We selected this auditee based on congressional and hotline complaints alleging that the Municipality improperly used Emergency funds to transport people from Puerto Rico to mainland U.S. cities to receive rehabilitation treatment.  Our main audit objectives were to determine whether allegations included in the complaints had...

We audited the Somerville Housing Authority’s public housing and Public Housing Capital Fund programs as part of our fiscal year 2016 regional audit plan.  We initiated our review because the U.S. Department of Housing and Urban Development’s (HUD) Boston Office of Public and Indian Housing had not monitored the programs in the past 5 years and we had not audited the Authority in the past 10 years.  Our audit objectives were to...

We audited the Jefferson Metropolitan Housing Authority’s public housing program based on the activities included in our 2016 annual audit plan and a request from the U.S. Department of Housing and Urban Development (HUD).  Our audit objective was to determine whether the Authority complied with (1) Federal and its own procurement requirements and (2) HUD’s requirements for the administration of its energy performance contract.  The...