We audited Bank2’s origination of Section 184 Loan Guarantees for Indian Housing program loans.  We selected Bank2’s Section 184 program because (1) an internal audit report and corrective action verification determined that the U.S. Department of Housing and Urban Development (HUD) lacked proper oversight of the program and lenders did not underwrite loans in accordance with HUD requirements 2) Bank2 is one of the largest Section…

We audited the Pell City and Ragland Housing Authorities’ financial operations.  We began our review of Pell City and Ragland because it aligns with a goal in our annual audit plan to improve the U.S. Department of Housing and Urban Development’s (HUD) execution of and accountability for grant funds.  Our audit objective was to determine whether the Pell City Housing Authority complied with HUD’s regulations regarding the…

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…

We audited the City of Birmingham, AL’s Community Development Block Grant Disaster Recovery (CDBG-DR) grant.  We selected the City for review based on concerns by the U.S. Department of Housing and Urban Development’s (HUD) Birmingham Office of Community Planning and Development in regard to the City’s administration of its disaster recovery program.  Our audit objectives were to determine whether the City ensured that (1)…

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…

We audited the City of Tuscaloosa, Alabama’s Community Development Block Grant Disaster Recovery (CDBG-DR) grant.  We selected the City for review because it was allocated more than $43 million in funding to recover from the tornadoes of April 2011.  Our audit objective was to determine whether the City of Tuscaloosa (1) ensured that only eligible projects were selected into the program, (2) ensured that funds were expended…

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. …

We audited the Mobile Housing Board’s financial operations.  We selected the Housing Board based on concerns from the U.S. Department of Housing and Urban Development’s (HUD) Alabama State Office of Public Housing, following a Real Estate Assessment Center (REAC) financial assessment of the Housing Board for fiscal years 2009 to 2013.  The REAC assessment showed that the Housing Board’s financial condition had deteriorated…

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…

We audited the Huntsville Housing Authority’s Section 8 Housing Choice Voucher program.  We initiated the audit under the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General’s (OIG) annual audit plan.  We selected the Authority as part of a strategic plan with the Assistant United States Attorney in Northern Alabama to evaluate housing authorities in her jurisdiction.  Our audit objective…

We audited the State of Alabama’s Department of Economic and Community Affairs’ Community Development Block Grant Disaster Recovery (CDBG-DR) grant.  We selected the State for review because it was awarded more than $49 million in funding to recover from the tornadoes of April 2011.  Our audit objective was to determine whether the State administered its CDBG-DR funds used for infrastructure to ensure that only eligible…

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…

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 audit objective was to determine whether the Section 8 housing assistance payments made to PK Management for the four multifamily complexes…

We audited the City of Huntsville’s Community Development Department, which administers the Community Development Block Grant (CDBG) and HOME Investment Partnerships Program, at the request of the U.S. Department of Housing and Urban Development’s (HUD) Alabama Office of Community Planning and Development.  Our objectives were to determine whether the Department’s commitment to use CDBG and HOME funds for the acquisition and…

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…

The civil division of the Western District of Oklahoma U.S. Attorney’s Office settled alleged violations of equity skimming against the owners of Heartland Health Care Center of Bethany. The equity skimming allegations stemmed from our December 2004 audit report outlining the misuse of funds. As a result of the combined efforts of the U.S. Attorney’s office; the U.S. Department of Housing and Urban Development (HUD), Office of…

We audited the Cherokee Nation in accordance with the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General’s goal to review funds provided under the American Recovery and Reinvestment Act of 2009. Our objective was to determine whether the Nation complied with Recovery Act requirements for procuring, expending, and reporting its formula Native American Housing Block Grant funds received under the…

We audited the Cherokee Nation in accordance with the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General’s goal to review funds provided under the American Recovery and Reinvestment Act of 2009.  Our objective was to determine whether the Nation complied with Recovery Act requirements for procuring, expending, and reporting its formula Native American Housing Block Grant funds received under the…

Based on a request by the U.S. Department of Housing and Urban Development’s (HUD) multifamily housing Kansas City hub office, we started an audit of three related nursing facilities on August 2008: • Bartlesville Health Care Center, Inc., doing business as Silver Lake Care Center; • Mannford Health Care Center, Inc., doing business as Cimarron Pointe Care Center; and • Owasso Nursing Center, Inc., doing…

HUD OIG performed an audit of the State of Alabama Department of Economic and Community Affairs, Neighborhood Stabilization Program (NSP1) in Montgomery, AL, to assess issues raised in a hotline complaint. The complaint alleged that the State of Alabama misused its NSP1 funds by not following the regulations and statutes governing the NSP1 program to ensure that it used program funds for eligible and supported purposes. The State was…