HUDOIG drafted a fraud bulletin outlining potential schemes where unscrupulous actors use misleading product information to entice business owners and government agencies to purchase defective or ineffective equipment or products that are purported to protect people from COVID-19.
This section contains periodic guidance for Department of Housing and Urban Development (HUD) administrators and associated program organizations on how to prevent fraud and mismanagement, lessons learned for program administration, as well as ways to identify and report fraud.
Select from the following program areas that pertain to your area of concern.
In response to the pandemic caused by the coronavirus disease of 2019 (COVID-19), Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which provides the U.S. Department of Housing and Urban Development (HUD) the authority to provide flexibilities to keep the industry moving. These flexibilities provide new opportunities for people to take advantage of the system.
Owners of U.S. Department of Housing and Urban Development (HUD)-assisted or -insured properties should similarly have a system of quality control over project operations, especially if they are absentee owners that leave daily operations to a management agent. Owners must be aware of the risks they face from the errors and frauds that may be committed by their agents. This bulletin emphasizes owners’ responsibilities for ensuring that project funds are spent properly and distributions do not violate HUD rules.
The Office of Inspector General (OIG) at the U.S. Department of Housing and Urban Development (HUD) uncovered a series of cases of appraiser identity theft. The schemes varied but resulted from someone using the State certification number of a Federal Housing Administration (FHA) roster appraiser. The FHA roster appraiser was unaware of the misuse until it came to light, usually by accident.
“Appraisal fraud, including appraiser identity theft, is a concern to the Appraisal Subcommittee (ASC). In general, appraisal fraud appears to have declined over the past several years. …
Financial management is the systematic application of procedures, forms, rules of conduct, and standards. As a grantee or subrecipient of Federal funds, your financial management practices must comply with the cost principles established by the Office of Management and Budget (OMB). This Bulletin is intended to identify components of a sound financial management system and offer guidance on avoiding some of the common challenges grantees face when managing Federal funds.
The purpose of this bulletin is to make grantees and subrecipients aware of the impact that insufficient documentation can have on their grant programs and offer guidance on how to avoid these findings through the life cycle of a CPD grant.
Internal controls are processes put into place by management to help an organization operate efficiently and effectively to achieve its objectives. Managers often think of internal controls as the purview and responsibility of accountants and auditors. The fact is that management at all levels of an organization is responsible for ensuring that internal controls are set up, followed, and reviewed regularly.
This bulletin highlights the importance of effective subrecipient management and oversight by grantees receiving funds from the U.S. Department of Housing and Urban Development’s (HUD) Office of Community Planning and Development (CPD). On December 26, 2013, the Office of Management and Budget issued revised guidance under 2 CFR (Code of Federal Regulations) Part 200. The result was consolidation of and changes to government-wide uniform administrative requirements, cost principles, and audit requirements for Federal awards. These changes emphasized a grantee’s responsibility to manage…
Conflicts of interest arise when officials or staff stand to benefit-- either directly themselves or indirectly through business partners or relatives-- from the awarding or contracting of grant funds. Grantees are encouraged to avoid conflicts of interest to the extent possible. When conflicts of interest arise, grantees must identify, disclose, and manage them in compliance with applicable rules and regulations. When conflict-of-interest issues are overlooked or hidden, this creates problems for the individuals involved, as well as grantees, subrecipients, or contractors. This bulletin…
Goods and services must be procured in an effective manner and in compliance with Federal, state, and local laws. These laws exist to ensure that funds are awarded through fair and open competition and are spent on eligible and reasonably priced goods and services. Although the majority of grantees and subrecipients comply with these rules and regulations, we are issuing this bulletin to assist you in identifying potential weaknesses in procurement and contracting procedures
The U.S. Department of Housing and Urban Development (HUD) expects PHAs to implement strong internal controls over purchase and travel cards. The Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards at title 2 of the Code of Federal Regulations, Part 200 (formerly Office of Management and Budget Circular A-87) sets out the Federal cost principles that govern what purchases are allowable. PHAs must follow these regulations as well as State and local laws as applicable. Purchase and travel card abuse is among the issues commonly identified during…
While the Department of Housing and Urban Development - Office of Inspector General (HUD OIG) recognizes that there are times when Home Equity Conversion Mortgages (HECM) refinances are beneficial to consumers, HUD OIG is issuing this industry alert to warn lenders, originators, and sponsors that the OIG has identified instances of fraudulent appraisals being used to increase HECM loan amounts in order to qualify senior borrowers for HECM refinancing. HUD OIG special agents have reviewed HECM refinances over the last several years and have identified indications of fraud in hundreds of…
The U.S. Department of Housing and Urban Development’s Office of Inspector General (HUD OIG) advises the public on how to recognize sovereign citizen occupation of a vacant property and the use of false deeds to support Section 8 leasing.
Avoid putting yourself in danger or accepting fraudulent documents. This bulletin explains how to protect yourself as well as HUD’s interests.
More can be done to combat tenant fraud and correct errors. While enforcement is one tool, it should be part of a comprehensive approach that tries to prevent as well as detect violations. This bulletin emphasizes the important role of Public Housing Agencies (PHAs) in maintaining integrity in the programs that provide rental assistance to low-income families. Some of the successful procedures and techniques used by PHAs to address the problem of…
Goods and services must be procured in an effective manner and in compliance with Federal, State, and local laws. Although the majority of public housing agencies (PHA) comply with these rules and regulations, we are issuing this bulletin to assist you in identifying weaknesses in procurement and contracting procedures.
Hiring the right public housing agency staff is fundamental to lasting success. In this bulletin we share with you best practices and practical advice that you can apply immediately to assure you have the best information, and avoid a hire that could result in fraud or mismanagement issues.
Your public housing agency (PHA) is more susceptible to being robbed from within by employees than by strangers from the outside. This bulletin will answer some of the basic questions about embezzlement and things you can do to prevent it.
Every day, loan modification and foreclosure rescue scams rob vulnerable homeowners of their money and their homes. Housing counselors can help fight back and put a stop to these crimes.
The U.S. Department of Housing and Urban Development (HUD) Office of Inspector General (OIG) is the Department’s law enforcement arm and is responsible for investigating complaints of mortgage fraud. We are working with HUD's Federal Housing Administration (FHA) and HUD-approved counseling agencies to identify scams, stop cases of suspected fraud, and prosecute the perpetrators.