We audited the Jersey City Housing Authority’s (Authority) administration of its public housing capital fund program funded under the American Recovery and Reinvestment Act of 2009 (Recovery Act). This is the second audit report regarding the Authority’s capital fund programs. We selected the Authority because of the size of its capital fund programs and because of its U.S. Department of Housing and Urban Development (HUD) risk rating. Our...

We conducted an audit of the Irvington Housing Authority’s (Authority) Capital Fund programs. The audit objectives were to determine whether Authority officials (1) obligated and expended its Capital Funds in accordance with U.S. Department of Housing and Urban Development (HUD) regulations, (2) had a financial management system in place that complied with program requirements and (3) whether the allegations in an anonymous complaint could be...

We audited the City of Bayonne, NJ's (City) Community Development Block Grant (CDBG) economic development activities in response to a complaint (HL- 09-1015) that contained four allegations. Our audit objectives were to determine whether the City (1) disbursed CDBG economic development funds efficiently and effectively in accordance with its submission to HUD and with the applicable rules and regulations, (2) used CDBG economic development...

We audited the Virginia Housing Development Authority (Authority) because it received $44.2 million in Tax Credit Assistance Program (Program) funds under the American Recovery and Reinvestment Act of 2009 (Recovery Act). The Authority received the second largest amount of Program funds awarded in Region III. Our objective was to determine whether the Authority administered its Program in accordance with Recovery Act and applicable U.S....

We audited the Jersey City Housing Authority's (Authority) administration of its capital fund programs. We selected the Authority because of the size of its capital fund programs and because of its US, Department of Housing and Urban Development (HUD) risk rating. Our audit objectives were to determine whether the Authority (I) obligated and expended funds under the Public Housing Capital Fund program (CFP) and Capital Fund Financing...

We conducted a review of Federal Housing Administration (FHA) loans underwritten by Security Atlantic Mortgage Company, Inc. (Security Atlantic), an FHA direct endorsement lender. This review was conducted as part of the Office of Inspector General’s (OIG) Operation Watchdog initiative to review the underwriting of 15 direct endorsement lenders at the suggestion of the FHA Commissioner. The Commissioner expressed concern regarding the...

We completed an audit of the City of Jersey City’s (City) Community Development Block Grant (CDBG) float loan activity. Our audit objective was to determine whether the City ensured that CDBG funds used for the float loan complied with applicable rules and regulations. The City did not comply with applicable regulations and failed to take timely action when the float loan defaulted. Specifically, it did not (1) make a good faith effort to...

We audited the Fairfax, VA, branch office (branch office) of Prospect Mortgage, LLC (Prospect Mortgage), because it had one of the highest default rates for U.S. Department of Housing and Urban Development (HUD)-approved lenders for loans issued in the State of Maryland. Our objective was to determine whether Prospect Mortgage and its branch office complied with HUD regulations, procedures, and instructions in the origination and quality...

We audited Infinity Home Mortgage Company, Inc. (Infinity Home Mortgage), a nonsupervised lender approved to originate Federal Housing Administration (FHA) single-family mortgage loans. We selected Infinity Home Mortgage because its default rate for the State of Pennsylvania was significantly higher than the average default rate for the State. Our objective was to determine whether Infinity Home Mortgage complied with U.S. Department of Housing...

We completed an audit of the City of Jersey City's (City) capacity to administer Community Development Block Grant (CDBG) funding provided under the American Recovery and Reinvestment Act of 2009 (Recovery Act). Our objectives were to evaluate the City’s capacity in the areas of internal controls, eligibility, financial controls, procurement, and output/outcomes in administering CDBG funds. The City generally had adequate financial...

We completed an audit of Community Development Block Grant (CDBG) program administered by the City of Paterson (City). Our audit objectives were to determine whether the City (1) disbursed CDBG funds efficiently and effectively in accordance with its submission to HUD and applicable rules and regulations and (2) had a financial management system in place to adequately safeguard the funds. The City did not always disburse CDBG funds efficiently...

We audited the Yorkville Cooperative (Cooperative) based on a request from the U.S. Department of Housing and Urban Development’s (HUD) Richmond Multifamily Program Center and a citizen complaint. The objective of the audit was to determine whether the Cooperative administered its Section 221(d)(3) property and housing assistance contract according to its regulatory agreement and HUD requirements. The Cooperative did not administer its Section...

We completed an audit of Ark Mortgage, Incorporated (Ark Mortgage), a nonsupervised direct endorsement lender located in North Brunswick, New Jersey. The audit objectives were to determine whether Ark Mortgage officials (1) originated insured loans in accordance with U.S. Department of Housing and Urban Development/Federal Housing Administration (HUD/FHA) requirements and (2) developed and implemented a quality control plan that complied with...

We completed an audit of Jersey Mortgage Company (Jersey Mortgage), a nonsupervised lender located in Cranford, New Jersey. The audit objectives were to determine whether Jersey Mortgage (1) approved Federal Housing Administration (FHA)-insured loans in accordance with the requirements of the U.S. Department of Housing and Urban Development (HUD)/FHA, which include adherence to prudent lending practices, and (2) developed and implemented a...

We audited the Richmond Redevelopment and Housing Authority (Authority) administration of its housing assistance payments for leased housing. This is the last of three audit reports we plan to issue on the Authority's program. The audit objective addressed in this report was to determine whether the Authority properly maintained documentation to support housing assistance payments and accurately calculated them. The Authority did not...

We completed an audit of the Union County Consortium's (County) administration of its Community Development Block Grant (CDBG) program to determine whether the County (1) disbursed CDBG funds efficiently and effectively in accordance with its submission to HUD and in compliance with HUD rules and regulations, (2) maintained a financial management system to adequately safeguard funds, and (3) established adequate controls to ensure that...

We audited the City of Norfolk's (City) HOME Investment Partnerships (HOME) program based on a request from the Community Planning and Development Division in the U.S. Department of Housing and Urban Development's (HUD) Richmond, Virginia, field office. Our audit objective was to determine whether the City properly administered its HOME program by following HUD requirements related to homebuyer assistance, modernization rehabilitation...

We audited the City of Camden's (City) asset control area (ACA) program following a request from the U.S. Department of Housing and Urban Development's (HUD) Office of Single Family Asset Management for a review of the City's compliance with its ACA agreement with HUD. Our objective was to determine whether the City complied with specific requirements in the ACA agreement pertaining to the resale of properties it acquired from HUD...

We completed an audit the Community Development Block Grant (CDBG) program administrated by the Township of South Orange Village (Township), a subgrantee of the Essex County Consortium (County). Our audit objectives were to determine whether the Township disbursed CDBG funds efficiently and effectively in accordance with its submission to the U.S. Department of Housing and Urban Development (HUD) and with applicable rules and regulations, had a...