Very Small and Small Housing Agencies Reviewed Had Common Violations of Requirements
In accordance with our regional audit plan, we performed a number of reviews of very small and small housing agencies located in the U.S. Department of Housing and Urban Development’s (HUD) Region 6 jurisdiction. We worked with HUD’s Office of Public and Indian Housing (PIH) and Departmental Enforcement Center and the Office of the Inspector General’s (OIG) Office of Investigation to identify housing agencies with areas of concern. ...
Septiembre 16, 2015
Memorandum
#2015-FW-0802
The Housing Authority of the City of Victoria, TX, Allowed Improper and Unsupported Payments
In accordance with our regional plan to review public housing programs and as part of our overall risk strategy, we reviewed the Housing Authority of the City of Victoria, TX. Our objective was to determine whether the Authority operated its public housing and related grant programs in accordance with the U.S. Department of Housing and Urban Development’s (HUD) requirements. However, we limited our review to determining whether the...
Septiembre 02, 2015
Report
#2015-FW-1005
Prudential Huntoon Paige Associates, LTD, Did Not Underwrite and Process a $19.9 Million Loan in Accordance With HUD Requirements
We audited Prudential Huntoon Paige Associates, LTD’s underwriting of a $19.9 million mortgage loan to develop Amaranth at 544, a senior multifamily project located in Lewisville, TX. We initiated the review based on the early default, assignment, and significant amount of the project. Our objective was to determine whether Prudential underwrote and processed the loan for Amaranth according to the U.S. Department of Housing and...
Junio 30, 2015
Report
#2015-AT-1003
The Housing Authority of Bexar County, TX, Did Not Operate Its HUD Public Housing Programs in Accordance With Regulations and Other Requirements
Because of an anonymous complaint, we reviewed the Housing Authority of Bexar County, TX. The complaint included allegations of improper procurement, improper use of Authority funds, misuse of the Authority’s credit card, and violations of Housing Choice Voucher regulations. Our objective was to determine whether the Authority operated its public housing and Housing Choice Voucher programs in accordance with the U.S. Department of...
Junio 11, 2015
Memorandum
#2015-FW-1806
NTFN, Inc., Did Not Always Follow HUD and FHA Requirements
We reviewed NTFN, Inc., based on the U.S. Department of Housing and Urban Development (HUD) Office of Inspector General’s (OIG) goal to protect the integrity of the Federal Housing Administration’s (FHA) housing insurance and guarantee programs. We selected NTFN because its loan default rate was the second highest in the Dallas-Fort Worth metropolitan area from July 2012 through June 2014. NTFN originated 3,046 FHA loans in the...
Mayo 26, 2015
Report
#2015-FW-1001
The Housing Authority of the City of Lockney, Lockney, TX, Did Not Operate Its Public Housing Programs in Accordance With Requirements
Because of concerns identified by the U.S. Department of Housing and Urban Development’s (HUD) Office of Public Housing, we performed a review of the Housing Authority of the City of Lockney. HUD alleged that the Authority’s previous executive director had a conflict-of-interest and received ineligible payments. Our objectives were to determine whether the Authority operated its public housing in accordance with HUD requirements and...
Abril 10, 2015
Memorandum
#2015-FW-1805
The Rotan Housing Authority, Rotan, TX, Did Not Administer Its Public Housing and Recovery Act Programs in Accordance With Regulations and Other Requirements
In accordance with our regional plan to review public housing programs and because of a complaint filed with the Office of the Inspector General (OIG) and issues identified by new management, we performed a review of the Rotan Housing Authority (Authority). The complainant and Authority management alleged that the Authority maintained its records in a disorderly fashion, lacked supporting documentation for rental income, had large rental...
Octubre 31, 2014
Memorandum
#2015-FW-1802
The Management of the Housing Authority of the City of Taylor, Taylor, TX, Did Not Exercise Adequate Oversight of Its Programs
In accordance with our annual audit plan to review public housing programs and because of an anonymous complaint and issues identified by the San Antonio Office of Public Housing, we reviewed the Housing Authority of the City of Taylor, Taylor, TX. Our objectives were to determine whether the Authority operated its public housing and related grant programs in accordance with the U.S. Department of Housing and Urban Development’s (HUD)...
Octubre 02, 2014
Memorandum
#2015-FW-1801
Cornerstone Home Lending, Houston, TX, Did Not Adequately Underwrite 16 Loans, Violated the Real Estate Settlement Procedures Act, and Did Not Implement an Adequate Quality Control Plan During Our Review Period
We audited Cornerstone Home Lending, formerly known as Cornerstone Mortgage Company. We selected Cornerstone based upon a high default rate at Cornerstone’s Branch 87 in 2007 through 2009. Our audit objectives were to determine whether Cornerstone (1) complied with HUD and Federal Housing Administration (FHA) regulations when originating and underwriting FHA-insured mortgages and (2) implemented a quality control plan that met...
Septiembre 26, 2014
Report
#2014-FW-1006
The Former Owner of Yale Court Apartments, Houston, TX, Used Project Funds in Violation of the Regulatory Agreement with HUD
At the request of the Director of the U.S. Department of Housing and Urban Development’s (HUD) Houston, TX, Office of Multifamily Housing Programs, we conducted a review of Yale Court Apartments (project). Our objective was to determine whether the project owner used the project funds in accordance with its regulatory agreement and HUD regulations.
The former owner used more than $3.5 million of the project funds for ineligible and...
Septiembre 22, 2014
Report
#2014-FW-1005
The Beaumont Housing Authority, Beaumont, TX, Needs To Improve Controls Over Its Housing Programs
In accordance with our regional plan to review public housing programs, we reviewed the Beaumont Housing Authority, Beaumont, TX. Our objective was to determine whether the Authority’s controls over tenant and unit eligibility were sufficient to ensure that it administered its low-rent public housing and Housing Choice Voucher programs in accordance with U.S. Department of Housing and Urban Development (HUD) regulations and guidance....
Septiembre 22, 2014
Memorandum
#2014-FW-1807
The Management of the Housing Authority of the City of Beeville, Beeville, TX, Did Not Exercise Adequate Oversight and Allowed Ineligible and Unsupported Costs
In accordance with our regional plan to review public housing programs and as part of our overall risk strategy to review smaller housing authorities, we reviewed the Housing Authority of the City of Beeville, TX. Our objective was to determine whether the Authority operated its public housing and related grant programs in accordance with the U.S. Department of Housing and Urban Development’s (HUD) requirements. However, we limited...
Agosto 01, 2014
Memorandum
#2014-FW-1804
The State of Texas’ Contractor Did Not Perform Adequate Hurricane Dolly Damage Inspections and Failed To Meet Critical Performance Benchmarks
We audited the State of Texas’ Community Development Block Grant Disaster Recovery Program based on a hotline complaint, which alleged mismanagement of the Lower Rio Grande Valley Development Council’s Disaster Recovery housing program. The complainant also made allegations concerning excessive home costs and ineligible homeowners. Our audit objectives were to determine whether the State (1) ensured that the contractor limited the...
Julio 15, 2014
Report
#2014-FW-1004
The Management of the Housing Authority of the City of Nixon, Nixon, TX, Did Not Exercise Adequate Oversight and Allowed Ineligible and Unsupported Costs
In accordance with our regional plan to review public housing programs and because of a complaint received by our office, we reviewed the Housing Authority of the City of Nixon, Nixon, TX. Our objective was to determine whether the Authority operated its public housing and related grant programs in accordance with the U.S. Department of Housing and Urban Development’s (HUD) requirements. Specifically, we wanted to determine whether...
Marzo 31, 2014
Memorandum
#2014-FW-1802
The Malakoff Housing Authority, Malakoff, TX, Did Not Have Sufficient Controls Over Its Public Housing Programs, Including Its Recovery Act Funds
In accordance with our regional plan to review public housing programs and because of weaknesses identified by the U.S. Department of Housing and Urban Development’s (HUD) Office of Public Housing, we reviewed the Malakoff Housing Authority, Malakoff, TX. Our objective was to determine whether the Authority’s controls were sufficient to ensure that it administered its HUD Public Housing programs in accordance with regulations and guidance...
Septiembre 26, 2013
Memorandum
#2013-FW-1805
The City of Brackettville Housing Authority, Brackettville, TX, Failed To Properly Operate Its Low Rent Program But Generally Oversaw Its Capital Fund Grants Properly
In accordance with our regional plan to review public housing programs and because of weaknesses identified by the U.S. Department of Housing and Urban Development’s (HUD) Office of Public Housing, we reviewed the City of Brackettville Housing Authority, Brackettville, TX. Our objective was to determine whether the Authority operated its public housing and related grant programs in accordance with HUD requirements.
The Authority’s...
Septiembre 18, 2013
Memorandum
#2013-FW-1803
The City of Eagle Pass TX, Housing Authority Generally Followed Recovery Act Public Housing Capital Funds Requirements
We completed an audit of the City of Eagle Pass Housing Authority’s (Authority) American Recovery and Reinvestment Act of 2009 (Recovery Act) grant activities. The Authority was selected based on the U.S. Department of Housing and Urban Development’s (HUD), Office of the Inspector General’s (OIG) annual plan to conduct oversight of the Recovery Act funds provided to public housing agencies and our regional risk evaluation. Our audit...
Agosto 14, 2013
Report
#2013-FW-1007
The Management and Board of Commissioners of the Harris County Housing Authority Mismanaged the Authority
We audited the Harris County Housing Authority, Houston, TX, at the request of the U.S. Department of Housing and Urban Development’s (HUD) Fort Worth Office Director of Public and Indian Housing. The request followed a series of news articles alleging mismanagement and extravagant spending at the Authority, the removal or replacement of various former managers and board of commissioners members, and concerns expressed by the new managers...
Junio 19, 2013
Report
#2013-FW-1006
CTX Mortgage Company LLC, Dallas TX, Allowed the Recording of Prohibited Restrictive Covenants
We conducted a limited review of Federal Housing Administration (FHA) loans underwritten by CTX Mortgage Company LLC. We selected the lender based on the results of an auditability survey, which determined that CTX Mortgage allowed prohibited restrictive covenants to be filed against Federal Housing Administration (FHA)-insured properties. The objective of our review was to determine the extent to which CTX Mortgage failed to prevent the...
Abril 18, 2013
Memorandum
#2013-LA-1803
The Housing Authority of the City of El Paso, TX Did Not Follow Recovery Act Obligation Requirements or Procurement Policies
We audited the Housing Authority of the City of El Paso because it met our oversight objectives for the American Recovery and Reinvestment Act of 2009, and because our risk assessment found the Authority had more than $1.7 million to be spent within 3 months of the expenditure deadline. Our audit objectives were to determine whether the Authority properly (1) obligated and spent its formula Recovery Act grant funds, (2) obtained its...
Abril 12, 2013
Report
#2013-FW-1004