The City of Chattanooga, TN, Did Not Always Administer Its ESG Program in Accordance With HUD’s Requirements
We audited the City of Chattanooga’s Emergency Solutions Grants (ESG) program. We selected the City for review in accordance with our annual audit plan. Our audit objective was to determine whether the City administered its ESG program in accordance with HUD’s requirements. The City did not always administer its ESG program in accordance with HUD’s requirements. Specifically, it did not ensure that program expenditures were adequately...
Septiembre 28, 2017
Shelby County, TN, Administered Its Community Development Block Grant Disaster Recovery Program Funds for Infrastructure in Accordance With HUD Requirements
We audited Shelby County’s Community Development Block Grant Disaster Recovery (CDBG-DR) grant. We selected the County for review in accordance with our annual audit plan and because the County received more than $7.4 million in funding to recover from severe storms, tornadoes, straight-line winds, and flooding that occurred in April 2011. Our audit objective was to determine whether the County ensured that (1) funds were spent only for...
Enero 17, 2017
Franklin American Mortgage Company Settled Allegations of Failing To Comply With HUD’s Federal Housing Administration Loan Requirements
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 Franklin American Mortgage Company. Franklin American has its principal place of business in Franklin, TN. Franklin American became an FHA-approved direct endorsement lender in 1995. As a direct endorsement...
Septiembre 08, 2016
Taliafaro, Inc., a Multifamily Housing Management Agent, Did Not Always Comply With HUD’ Requirements or Its Own Policies and Procedures in the Disbursement of Project Funds and Collection of Its Fees
We reviewed the disbursement of project funds for seven of the Sections 202 and 811 supportive housing projects for the elderly and persons with disabilities managed by Taliafaro, Inc. We initiated the audit under the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General’s annual audit plan. Our objective was to determine whether Taliafaro used project funds appropriately and operated multifamily projects located...
Septiembre 30, 2015
First Tennessee, N.A. Settled Allegations of Failing To Comply With HUD’s Federal Housing Administration Loan Requirements
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, Northern District of Georgia, in conducting a review of First Tennessee has its principal place of business in Memphis, TN and is a wholly owned subsidiary of First Horizon Financial Corporation. First Tennessee became an FHA-approved direct endorsement lender in...
Septiembre 29, 2015
Peoples Home Equity, Inc., Brentwood, TN, Did Not Follow HUD Requirements in Approving FHA Loans and Implementing Its Quality Control Program
We audited Peoples Home Equity, Inc.(Peoples), a Federal Housing Administration (FHA) approved nonsupervised direct endorsement lender located in Brentwood, TN. We selected Peoples based on its high default rates. The audit was part of our annual audit plan to review single family programs and lenders. Our audit objectives were to determine whether Peoples complied with HUD requirements when it originated and underwrote FHA loans, and...
Septiembre 30, 2014
The Memphis Housing Authority, Memphis, TN, Did Not Always Ensure That Its Housing Choice Voucher Program Units Met HUD’s Housing Quality Standards
We audited the Memphis, TN, Housing Authority’s Housing Choice Voucher program as part of the activities in our fiscal year 2014 audit plan. We selected the Authority because it had a large program, receiving about $40 million in yearly funding, and was part of the OIG’s annual audit plan. Our objective was to determine whether the Authority’s inspection process adequately ensured that its units were in material compliance with housing quality...
Septiembre 30, 2014
The City of Memphis, TN, Did Not Have Effective Controls To Administer Its Housing and Rehabilitation Program Activities
We audited the City of Memphis’ Community Development Block Grant (CDBG) and HOME Investment Partnerships Program-funded Housing and Rehabilitation Program (HARP) as part of the activities in our 2013 fiscal year annual audit plan and based on a referral from the Office of Inspector General’s Office of Investigation. Our audit objective was to determine whether the City used its CDBG and HOME funds for eligible activities and complied with the...
Diciembre 29, 2013
We audited the Shelby County Housing Authority in Memphis, TN, based upon an audit request from the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General for Investigation. The request included many areas of concern for both public housing operations and Section 8 Housing Choice Voucher program administration. Our objective was to determine whether the Authority complied with HUD requirements for administering its...
Enero 25, 2012
The City of Memphis, TN, Did Not Ensure Compliance With All Requirements for Its Homelessness Prevention and Rapid Re-Housing and Community Development Block Grant-Recovery Programs
HUD OIG audited the City of Memphis’ administration of its Homelessness Prevention and Rapid Re-Housing Program (HPRP) and Community Development Block Grant-Recovery (CDBG-R) funds received under the American Recovery and Reinvestment Act. We selected the City for audit because it received more than $3.3 million in HPRP funds and more than $2.1 million in CDBG-R funds, the most for any Tennessee city. The City had expended more than $1.5...
Agosto 26, 2011
The Nashville, TN, Metropolitan Development and Housing Agency Generally Complied With Neighborhood Stabilization Program 2 Requirements
We reviewed the Metropolitan Development and Housing Agency’s (Agency) Neighborhood Stabilization Program 2 (NSP2). We selected the Agency for review because it received, in a consortium established with The Housing Fund, Urban Housing Solutions, and Woodbine Community Organization, a nearly $30.5 million NSP2 grant under the American Recovery and Reinvestment Act of 2009. The Agency was the only NSP2 grant recipient in Tennessee. Our...
Abril 06, 2011
We conducted a review of Federal Housing Administration (FHA) loans underwritten by First Tennessee Bank, N.A. (First Tennessee), an FHA direct endorsement lender. This review was conducted as part of our 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 increasing claim rates against the FHA insurance fund for...
Septiembre 27, 2010
The City of Chattanooga, TN, Needs To Strengthen Controls for Tracking Obligations and Reporting for Its Neighborhood Stabilization Program
HUD OIG reviewed the City of Chattanooga’s (City) Neighborhood Stabilization Program (program). We selected the City for review based on its low percentage of obligations and the approaching September 6, 2010, deadline for obligating funds. Our objective was to determine whether the City administered its program in accordance with U.S. Department of Housing and Urban Development (HUD) rules and regulations. The City generally administered its...
Septiembre 03, 2010
The Chattanooga Housing Authority (Authority) was awarded a $6.35 million capital fund formula grant and a $4.8 million capital fund competitive grant under the American Recovery and Reinvestment Act of 2009 (Recovery Act). In accordance with our goal to review funds provided under the Recovery Act, we conducted a capacity review of the Authority’s operations. The objective was to determine whether the Authority had the capacity to adequately...
Enero 25, 2010
We audited the Chattanooga Housing Authority's (Authority) financial operations after the U.S. Department of Housing and Urban Development (HUD), Office of Public Housing, Tennessee State Office, informed us of the Authority's deteriorating financial condition. We began with a review of the Authority's development activities but expanded the review based on our survey results. The Authority, with the exception of $49,316 in...
Junio 11, 2009