HUD OIG Letter to Lenders on Eliminating Fraud, Waste, and Abuse
HUD OIG is committed to eliminating fraud, waste, and abuse.
HUD Did Not Correctly Service all Due and Payable Partial Claims
We audited the U.S Department of Housing and Urban Development (HUD) National Servicing Center’s (NSC) tracking and collection of FHA partial claims. We initiated the audit to assess HUD’s implementation of the corrective actions from HUD OIG audit report 2016-KC-0001, HUD Did Not Collect an Estimated 1,361 Partial Claims Upon Termination of Their Related Federal Housing Administration (FHA)-Insured Mortgages; however, we determined based on a referral from HUD OIG’s Financial Audits Division that there was an issue with the collection of partial claims, and the corrective ac
California-based Grantee Continuum of Care Program Expenditures
HUD OIG is auditing a California-based grantee's Continuum of Care (CoC) program. The grantee was allocated about $75 million in CoC grant awards in 2024 to use to address homelessness. The objective of our audit is to determine whether the grantee’s CoC subrecipients expended grant funds in accordance with the program requirements.
Solis Gardens Apartments Was Not Properly Managed in Accordance with HUD Requirements or Its Regulatory Agreement
We audited Solis Gardens Apartments’ management of its HUD-insured Section 207/223(f) multifamily property as part of our annual work plan. The owner of Solis Garden Apartments manages 62 units in accordance with HUD requirements and its regulatory agreement which includes restrictions on the use of project funds and assets. We selected Solis Gardens Apartments for an audit based on risk indicators, such as surplus cash deficiencies, missed or late mortgage payments, HUD’s risk rating, and the absence of any HUD Management and Occupancy reviews.
Inspection of HUD-Assisted Conditions at a California based Public Housing Authority
HUD OIG is conducting an evaluation of housing conditions at a California based Public Housing Authority (PHA). All HUD-assisted housing units are subject to meet quality standards for decent, safe, and sanitary housing. Our evaluation objective is to determine whether a California based PHA provided decent, safe, and sanitary housing at its developments.
Evaluation of HUD's Security Assessment and Authorization (SA&A) Program
HUD OIG is evaluating HUD's security assessment and authorization (SA&A) program within the Office of the Chief Information Officer (OCIO). The SA&A program is essential for ensuring systems meet security requirements and mitigate cybersecurity risks. Our evaluation objective is to assess the effectiveness of the SA&A program, including the causes for expired information system authorizations to operate (ATO) and the state of their remediation.
HOME and HOME ARP Draws Made Near Hold in Federal Funding Were Premature and Improper Payments
We identified a significant increase in the amount of funds drawn by HOME Investment Partnerships Program (HOME) and HOME American Rescue Plan (ARP) grantees near the time of the January 2025, hold in Federal funds, which increased the risk that the funds may have been drawn prematurely, without support, or used improperly. Therefore, our audit objective was to identify if HOME and HOME ARP draws made near the time of the hold in federal funds were in accordance with program requirements.