We audited the Newark Housing Authority’s Housing Choice Voucher Program. We selected the Authority for review because the U.S. Department of Housing and Urban Development (HUD) authorized more than $111 million in program funding for its Housing Choice Voucher Program in fiscal years 2016 and 2017 and based on our risk analysis of public housing agencies located in the State of New Jersey. The objective of the audit was to determine whether the...

We audited the Red Bank Housing Authority based on the results of our audit of Asbury Park Housing Authority because both public housing agencies had agreements with the Long Branch Housing Authority to provide services.  The objective of this audit was to determine whether the Authority administered its Public Housing Operating and Capital Fund programs in accordance with U.S. Department of Housing and Urban Development (HUD), Federal,...

We audited the City of Providence RI’s HOME Investment Partnerships program based on an OIG risk assessment, which ranked the City as the highest risk HOME grantee in New England.  The objective of the audit was to determine whether the City properly committed and disbursed HOME funds in accordance with Federal and U.S. Department of Housing and Urban Development (HUD) rules and regulations. City officials did not properly administer their...

We audited the Housing Authority of the City of Asbury Park based on our risk analysis of public housing agencies located in the State of New Jersey.  The objective of the audit was to determine whether the Authority administered its Public Housing Operating and Capital Fund programs in accordance with applicable U.S. Department of Housing and Urban Development (HUD), Federal, and Authority requirements. The Authority did not always...

We audited Hudson County, NJ’s HOME Investment Partnerships program (HOME) as part of the activities in our annual audit plan.  We selected the County based on a risk analysis that considered the amount of funding, the risk score assigned to it by the U.S. Department of Housing and Urban Development (HUD), and our identification of potential issues.  Our objective was to determine whether the County committed and disbursed HOME funds...

We audited BLM Companies LLC, a contracted field service 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 performing property preservation and protection services for U.S. Department of Housing and Urban Development (HUD)-acquired properties located in Ohio.  Our audit objective was to determine whether BLM...

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted the U.S. Department of Justice (DOJ) and the U.S. Attorney’s Offices, District of New Jersey, District of Minnesota, and Southern District of Florida, in the civil investigation of PHH Corporation, PHH Mortgage Corporation (PHHMC), and PHH Home Loans, LLC (PHHHL), collectively referred to as PHH.  PHH was a direct endorsement lender...

We conducted an audit of BLM Companies LLC’s controls and performance under its Management and Marketing III program field service manager contract with the U.S. Department of Housing and Urban Development (HUD) for area 1D.  Area 1D included HUD real estate-owned and custodial properties in New Mexico, North Texas, Utah, and Colorado.  During the audit period, BLM held 7 of 18 HUD field service manager contracts throughout the Nation...

We audited the Housing Choice Voucher and public housing programs at the West Warwick Housing Authority as a result of concerns from the U.S. Department of Housing and Urban Development (HUD) and a hotline complaint.  The audit objectives were to determine whether (1) procurements were executed in accordance with Federal regulations, (2) West Warwick officials established adequate controls over the Housing Choice Voucher and public housing...

We audited the State of New Jersey’s Community Development Block Grant Disaster Recovery-funded Sandy Homebuyer Assistance program.  We conducted the audit because (1) it was the State’s only home-buyer assistance program, (2) the State had spent a high percentage of its allocated funds, and (3) reviews performed by the State auditor and the State’s disaster recovery integrity monitor identified potential issues.  Our objective was to...

We audited Health Concepts Ltd., a management agent that administers six Federal Housing Administration (FHA)-insured nursing homes.  We conducted this audit based on our review of the Pine Grove Health Center.  The review found that Pine Grove’s owners paid salaries for onsite staff that were covered under the management agreement and charged for services that should have been included in the management fee.  Our objectives for...

We audited the Housing Authority of the Township of Irvington, NJ, regarding the administration of its public housing program because it was classified as a troubled public housing agency and based on a complaint from the union representing its maintenance and clerical employees.  The complaint alleged serious financial and operational mismanagement.  The audit objectives were to determine whether the issues identified in the...

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 for the District of New Jersey in a civil investigation of Security National Mortgage Company.  Security National is a Federal Housing Administration (FHA)-approved mortgage lender with its principal place of business located in Salt Lake City, UT. On...

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited Village North Apartments in Salt Lake City, Utah based on concerns that surfaced during another assignment when it appeared as though Village North might have moved tenants in and out of units and collected housing assistance payments for them without changing the social security numbers or birthdates for the new tenants.  The objective of our...

We audited the Federal Housing Administration-insured Burrillville Nursing Home, Incorporated, doing business as Pine Grove Health Center, based on a U.S. Department of Housing and Urban Development (HUD), Office of Inspector General risk assessment.  Additionally, HUD identified Pine Grove as a high financial risk and a potentially troubled facility, and Pine Grove’s auditors reported substantial doubt regarding its ability to continue as...

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 Primary Residential Mortgage, Inc.  Primary has its principal place of business in Salt Lake City, UT.  Primary became an FHA-approved direct endorsement lender on October 15, 1998.  The direct...

We audited Union County, NJ’s HOME Investment Partnerships Program based on a risk analysis of the County’s program that considered the amount of funding, the risk score assigned by the U.S. Department of Housing and Urban Development (HUD), and our identification of potential issues.  The objective of the audit was to determine whether County officials had established and implemented adequate controls to ensure that the County’s program...

We audited the State of New Jersey’s Community Development Block Grant Disaster Recovery-funded Superstorm Sandy Housing Incentive Program contract.  We conducted the audit because the contract involved a significant amount of funds ($67.7 million), was critical to the implementation of three of the State’s disaster programs, and was terminated less than 1 year into the 3-year contract term.  Our objective was to determine whether the...

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited the University Village, LLC in Orem Utah based on previous violations identified by the U.S. Department of Housing and Urban Development (HUD) that found ineligible withdrawals and substandard physical conditions at the property.  The objective of our audit was to determine whether University Village complied with its HUD multifamily Federal...

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 New Jersey, in the civil investigation of Freedom Mortgage Corporation.  Freedom has its principal place of business in Mount Laurel, NJ, and became an FHA-approved direct endorsement lender in 1993.  As a direct endorsement lender, Freedom...