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The City of Los Angeles, CA, Did Not Always Ensure That Community Development Block Grant-Funded Projects Met National Program Objectives
We initiated a review of the City of Los Angeles’ Community Development Block Grant (CDBG) program due to concerns that CDBG-funded assets may be at risk. We performed our review to address questionable costs identified during a prior Office of Inspector General review (audit report 2014-LA- Read More
Septiembre 28, 2014
Report
#2014-LA-1007
The Owner and Former Management Agents Lacked Adequate Controls Over the Operation of Lake Village of Auburn Hills, Auburn Hills, MI
We audited the Lake Village of Auburn Hills multifamily project as part of the activities in our fiscal year 2014 annual audit plan. We selected the project based on a request from the U.S. Department of Housing and Urban Development’s (HUD) Detroit Office of Multifamily Housing. Our Read More
Septiembre 28, 2014
Report
#2014-CH-1010
The Department of Housing and Community Development, Montpelier, VT, Did Not Always Operate Its Disaster Recovery Programs Effectively and Efficiently
We audited the State of Vermont, Department of Housing and Community Development’s disaster recovery programs. We initiated this audit because of the significant funding awarded and the Boston Office of Community Planning and Development’s concerns about the State’s capacity to administer Read More
Septiembre 28, 2014
Report
#2014-BO-1004
Final Civil Action: Bank of America, Charlotte, NC Settled Allegations of Failing To Comply With HUD’s FHA Underwriting Requirements
Our office assisted the U.S. Department of Justice (DOJ), U.S. Attorney’s Office, Eastern District of New York, in conducting an investigation of Bank of America’s origination of mortgage loans insured by the Federal Housing Administration (FHA) from May 1, 2009, through March 31, 2012. Read More
Septiembre 29, 2014
Memorandum
#2014-FW-1808
The Jefferson Parish, LA Department of Community Development Did Not Always Support Expenditures, Comply With Procurement Requirements, or Provide Adequate Oversight of Subrecipients
We audited the Jefferson Parish’s Community Development Block Grant (CDBG) program as part of the Office of Inspector General’s annual audit plan to review Community Development funds. The audit objective was to determine whether the Parish adequately supported and expended its program funds Read More
Septiembre 29, 2014
Report
#2014-FW-1007
A Former Employee of the Helena Housing Authority, Helena, MT, Improperly Released Personally Identifiable Information
The U.S. Department of Housing and Urban Development – Office of Inspector General audited the Helena, MT Housing Authority in response to a hotline complaint alleging a former employee of the housing authority improperly released housing choice voucher holders’ personally identifiable information Read More
Septiembre 24, 2014
Report
#2014-DE-1002
The Housing Authority of the City of Stamford, CT Took Appropriate Action to Resolve a Complaint While Complying With Procurement Regulations
We audited the Housing Authority of the City of Stamford, doing business as Charter Oak Communities. We received an anonymous complaint against the Authority related to an alleged improper procurement. The complainant alleged that Authority officials awarded a contract to an employee’s Read More
Septiembre 25, 2014
Memorandum
#2014-BO-1801
The City of Pomona, CA, Did Not Administer Its Neighborhood Stabilization Program in Accordance With HUD Rules and Requirements
We audited the City of Pomona’s Neighborhood Stabilization Programs (NSP1 and NSP3). We initiated the audit because of a hotline complaint with concerns regarding the administration of program funds. Our objective was to determine whether the City administered its NSP funds in Read More
Septiembre 24, 2014
Report
#2014-LA-1006
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 Read More
Septiembre 25, 2014
Report
#2014-FW-1006
Final Civil Action – Judgment Imposed on Loan Officer Regarding Allegations of Making a False Certification to HUD for a Home Purchase Under the Federal Housing Administration Program
We conducted a civil fraud review of an alleged loan origination fraud scheme involving a loan officer that assisted a borrower to purchase a home under the U.S. Department of Housing and Urban Development (HUD), Federal Housing Administration (FHA) program. The alleged scheme involved Read More
Septiembre 24, 2014
Memorandum
#2014-CF-1809
Final Civil Action – Reunion Mortgage, Inc. Settled Allegations of Making False Claims to the Federal Housing Administration
We assisted the U.S. Attorney’s Office of the Northern District of California in the civil investigation of Reunion Mortgage, Inc. (Reunion). Reunion is a former Federal Housing Administration (FHA)-approved mortgage lender, with its principal place of business located in Milpitas, CA. Read More
Septiembre 24, 2014
Memorandum
#2014-CF-1810
Lenders Generated $428 Million in Gains From Modifying Defaulted FHA Loans
The U.S. Department of Housing and Urban Development’s (HUD), Office of Inspector General reviewed HUD’s Federal Housing Administration (FHA) loss mitigation program. We initiated this audit due to our concern that FHA might have incurred costs while allowing lenders to make large amounts of Read More
Septiembre 23, 2014
Report
#2014-KC-0004
Wellston Housing Authority Improperly Administered the Community Service and Self-Sufficiency Requirement
The U.S. Department of Housing and Urban Development – Office of Inspector General audited the Wellston, MO Housing Authority’s administration of the Community Service and Self-Sufficiency Requirement (CSSR) due to its unusually low reported rate of compliance with the requirement. Also, Read More
Septiembre 23, 2014
Report
#2014-KC-0005
Improvements Are Needed Over Environmental Reviews of Public Housing and Recovery Act Funds in the Detroit Office
We audited the U.S. Department of Housing and Urban Development’s (HUD) Detroit Office of Public Housing as part of a nationwide audit of HUD’s oversight of environmental reviews. We selected the Detroit Office based on our risk assessment. Our audit objectives were to determine Read More
Septiembre 23, 2014
Report
#2014-FW-0005
PK Management, LLC, Did Not Ensure Adequate Accountability and Administration of Its Multifamily Projects
We audited PK Management, LLC, a management agent of four apartment complexes in the Birmingham, AL, metropolitan area. We initiated the review based on a request from the U.S. Department of Housing and Urban Development’s (HUD) Birmingham Office of Multifamily Housing Programs. Our Read More
Septiembre 21, 2014
Report
#2014-AT-1011
HUD’s Monitoring of the Vieques Sports City Complex’s Section 108 Loan Guarantee Program
We reviewed HUD’s San Juan, PR, Office of Community Planning and Development’s monitoring of the Vieques, PR, Sports City Complex project. The review was performed based on indicators identified in the audit of the Vieques Sports City Complex, Office of the Commissioner for Municipal Affairs Read More
Septiembre 17, 2014
Memorandum
#2014-AT-0801
The City of Jersey City, NJ’s HOME Investment Partnerships Program Administration Had Financial and Administrative Control Weaknesses
We audited the City of Jersey City, NJ’s HOME Investment Partnerships Program based on a risk assessment that considered the amount of funding, the risk score assigned to it by the U.S. Department of Housing and Urban Development (HUD), and general congressional interest in the HOME program. Read More
Septiembre 17, 2014
Report
#2014-NY-1009
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 Read More
Septiembre 21, 2014
Memorandum
#2014-FW-1807
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 Read More
Septiembre 21, 2014
Report
#2014-FW-1005
HUD Did Not Always Enforce the Requirements of the Regulatory Agreements and HUD Handbooks Pertaining to Owner Advances and Distributions
The U.S. Department of Housing and Urban Development – Office of Inspector General audited HUD’s Office of Multifamily Housing Programs, based on an internal audit suggestion expressing concern that multifamily property owners took unauthorized distributions or owner advances with no consequence. Read More
Septiembre 16, 2014
Report
#2014-KC-0003