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
RMS & Associates, Las Vegas, NV, Improperly Originated FHA-Insured Loans With Restrictive Covenants
We audited RMS & Associates’ Federal Housing Administration (FHA) loan origination because it was one of the top lenders that originated FHA-insured loans with downpayment assistance from the City of Las Vegas. A previous U.S. Department of Housing and Urban Development, Office of Inspector General (HUD OIG), audit (Evergreen Home Loans, 2016-LA-1011) found that Evergreen originated FHA-insured loans in connection with the City of Las...
Septiembre 28, 2017
Memorandum
#2017-LA-1803
SecurityNational Mortgage Company, Las Vegas, NV, Improperly Originated FHA Loans for Properties With Restrictive Covenants
We audited SecurityNational Mortgage Company’s Federal Housing Administration (FHA) loan origination because it was among the top lenders that originated FHA-insured loans with downpayment assistance from the City of Las Vegas. A previous U.S. Department of Housing and Urban Development, Office of Inspector General (HUD OIG), audit (Evergreen Home Loans, 2016-LA-1011) found that Evergreen originated FHA-insured loans in connection with...
Septiembre 22, 2017
Memorandum
#2017-LA-1802
Venta Financial Group, Inc., Las Vegas, NV, Improperly Originated FHA-Insured Loans With Restrictive Covenants
We audited Venta Financial Group’s Federal Housing Administration (FHA) loan origination because it was one of the top lenders that originated FHA-insured loans with downpayment assistance from the City of Las Vegas. A previous U.S. Department of Housing and Urban Development, Office of Inspector General (HUD OIG) audit (Evergreen Home Loans, 2016-LA-1011) found that Evergreen originated FHA-insured loans in connection with the City of...
Septiembre 20, 2017
Memorandum
#2017-LA-1801
The City of Las Vegas, NV, Did Not Administer Its Neighborhood Stabilization Program 3 Homebuyer Assistance Program in Accordance with HUD Requirements
We audited the City of Las Vegas’, Homebuyer Assistance Program under the U.S. Department of Housing and Urban Development’s (HUD) Neighborhood Stabilization Program 3 (NSP3). We initiated this review because of a prior HUD Office of Inspector General audit of Evergreen Home Loans issued September 12, 2016 (audit report 2016-LA-1011). The Evergreen Home Loans audit report identified 14 loans that received home-buyer assistance as...
Septiembre 13, 2017
Report
#2017-LA-1008
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
Clark County, NV, Did Not Always Use Community Development Block Grant Funds in Accordance With HUD Requirements
We audited Clark County, NV’s Community Development Block Grant (CDBG) program. We selected Clark County for review due to its large grant size and the U.S. Department of Housing and Urban Development’s (HUD) risk assessment. The reporting objective of the audit was to determine whether Clark County followed procurement requirements, ensured that CDBG projects met CDBG national objectives, and spent CDBG funds on eligible expenses....
Abril 13, 2017
Report
#2017-LA-1001
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
The Wyoming Community Development Authority of Casper, WY, Did Not Always Spend Its HOME and NSP Funds in Accordance With Program Requirements
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited the Wyoming Community Development Authority of Casper, WY, for calendar years 2012-2015. The audit was initiated based on concerns received from U.S. Department of Housing and Urban Development (HUD) officials from the Office of Community Planning and Development program staff in Denver, CO. The objectives of the audit were to determine...
Septiembre 28, 2016
Report
#2016-DE-1005
The Evanston Housing Authority, Evanston, WY, Misspent HUD Funds and Mismanaged Its Program Income
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited the Evanston Wyoming Housing Authority’s public and Indian housing program funds for calendar years 2013-2015. We initiated this audit in response to a hotline complaint. The complaint alleged that the Authority used its purchase cards and laundry machine program income to pay for personal expenses, such as remodeling of staff members’...
Septiembre 13, 2016
Report
#2016-DE-1002
Evergreen Home Loans, Las Vegas, NV, Branch Did Not Always Comply With HUD FHA Origination Regulations
We performed a survey of Evergreen Moneysource Mortgage Company, doing business as Evergreen Home Loans, regarding its Federal Housing Administration (FHA) loan origination process. The review was part of our efforts to improve the integrity of single-family insurance programs. We selected Evergreen’s Las Vegas branch because of its compare ratio. Our audit objective was to determine whether Evergreen’s Las Vegas branch...
Septiembre 12, 2016
Report
#2016-LA-1011
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 Reno-Sparks Indian Colony, Reno, NV Did Not Always Comply With HUD Procurement Regulations
We audited the Reno-Sparks Indian Colony based on a complaint alleging the misuse of U.S. Department of Housing and Urban Development (HUD) funds due to improper procurement activities. The objective of the audit was to determine the validity of the complaint and whether the Colony used its Indian Housing Block Grant and Indian Community Development Block Grant funds in accordance with HUD requirements.
The complaint allegations had merit...
Febrero 09, 2016
Report
#2016-LA-1001
The City of Moore, OK, Generally Had the Capacity To Expend Its Community Development Block Grant Disaster Recovery Funds
We reviewed the City of Moore, OK, because it received $52.2 million in Community Development Block Grant Disaster Recovery (CDBG-DR) funding in response to the tornado that struck Moore on May 20, 2013. Further, the City only recently became a CDBG entitlement grantee, and there was a substantial increase between its regular CDBG funding and its CDBG-DR funding. Also, our annual audit plan placed a priority on reviewing entities...
Agosto 07, 2015
Report
#2015-FW-1003
The State of Wyoming Did Not Always Administer Its CDBG Program in Accordance With Applicable Requirements
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited the State of Wyoming’s Community Development Block Grant (CDBG) program run by the Wyoming Business Council. Our audit objective was to determine whether the State reimbursed only approved costs, its grant agreements contained all required language, it properly monitored its projects, and it ensured that projects met the national objective in...
Mayo 26, 2015
Report
#2015-DE-1001
Memorandum Report on the Wyoming Community Development Authority’s Role in the Village Creek Townhomes’ 51 FHA Mortgage Defaults
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited the Wyoming Housing Opportunities Association (Association) based on information obtained during a separate audit of the Wyoming Community Development Authority (State Finance Agency), which indicated that 51 Federal Housing Administration (FHA) mortgages with the same borrower had defaulted. The purpose of our audit was to determine whether...
Agosto 12, 2014
Memorandum
#2014-DE-1801
Southern Nevada Regional Housing Authority, Las Vegas, NV, Did Not Always Follow Requirements for Its Operating Funds and Public Housing Assets
We audited the Southern Nevada Regional Housing Authority’s use of U.S. Department of Housing and Urban Development (HUD) public housing operating funds. We audited the Authority based on a complaint alleging that the Authority (1) failed to competently oversee the Federal dollars entrusted to it and (2) did not have inventory controls in place to prevent the fraudulent use of supplies. Our audit objective was to determine whether...
Abril 17, 2014
Report
#2014-LA-1002
Summit Bradford Apartments, Tulsa, OK, Did Not Comply With the Requirements of Its Housing Assistance Payments Contract
We audited the Section 8 program administered by Summit Bradford Apartments in Tulsa, OK. We selected Bradford because we were informed that its management agent may have received Section 8 subsidies for vacant units. Our objective was to determine whether Summit Bradford Apartments, LP, the owner, and Summit Housing Partners, LLC, the management agent, administered Bradford’s Section 8 program in compliance with its housing...
Abril 09, 2014
Report
#2014-FW-1001
The Wyoming Community Development Authority Properly Administered HUD’s Loss Mitigation Program
We reviewed the administration of the U.S. Department of Housing and Urban Development’s (HUD) Loss Mitigation Program at the Wyoming Community Development Authority, located in Casper, WY. Our objective was to determine whether the Authority properly administered HUD’s Loss Mitigation Program for Federal Housing Administration (FHA)-insured mortgages. We selected the Authority based on its high rate of foreclosure claims. Its...
Enero 21, 2014
Report
#2014-DE-1001
Marina Village Apartments, Sparks, NV, Was Not Always Administered in Accordance With HUD Requirements
We audited Marina Village Apartments as a result of the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General’s (OIG) internal audit of HUD’s servicing of multifamily HUD-held mortgages and a risk analysis. The objectives were to determine whether project funds were used in compliance with the regulatory agreement and HUD requirements and whether the project operated in compliance with its use agreement.
The...
Octubre 24, 2013
Report
#2014-LA-1001