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Date Issued

Housing

  •  
    Status
      Open
      Closed
    2017-PH-0003-001-A

    Direct the applicable lenders to provide evidence that the properties for the 1,383 FHA-insured loans not included in our sample had a safe and potable water source, or that the appraisers had not notified the lender of the water quality issue on their appraisals. If the lenders cannot provide this evidence, HUD should direct them to perform water testing and any necessary remediation to ensure that the properties have a safe and potable water source, or indemnify HUD against future loss.

  •  
    Status
      Open
      Closed
    2017-PH-0003-001-B

    Take appropriate administrative action against the lenders or appraisers for any cases in which it finds that they did not take appropriate steps to ensure that properties had a safe and potable water source.

  •  
    Status
      Open
      Closed
    2017-PH-0003-001-C

    Develop and implement additional guidance to advise lenders and appraisers when water testing is required for properties serviced by a public water system which has issued a public notice of water contamination.

  •  
    Status
      Open
      Closed
    2017-PH-0003-001-D
    $238,090,214
    Funds Put to Better Use

    Recommendations that funds be put to better use estimate funds that could be used more efficiently. For example, recommendations that funds be put to better use could result in reductions in spending, deobligation of funds, or avoidance of unnecessary spending.

    Develop and implement policies and procedures to ensure that appraisers comply with guidance implemented to resolve recommendation 1C, including penalties for failure to comply, thereby ensuring that at least $238,090,214 million is put to better use.

  •  
    Status
      Open
      Closed
    2017-PH-0003-001-E

    Consider requiring water testing for all FHA-insured properties.

Housing

  •  
    Status
      Open
      Closed
    2017-LA-1803-001-A
    $2,460,446
    Funds Put to Better Use

    Recommendations that funds be put to better use estimate funds that could be used more efficiently. For example, recommendations that funds be put to better use could result in reductions in spending, deobligation of funds, or avoidance of unnecessary spending.

    Work with HUD to nullify the restrictions on conveyance that violate HUD policy or indemnify HUD. This action will protect HUD against future losses of $2,434,204 for the 49 loans.

  •  
    Status
      Open
      Closed
    2017-LA-1803-001-B
    $26,242
    Questioned Costs

    Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.

    Repay HUD $26,242 for partial claims paid on two FHA loans that contained prohibited restrictive covenants.

  •  
    Status
      Open
      Closed
    2017-LA-1803-001-C

    Develop and implement policies and procedures to identify prohibited restrictions on conveyance to ensure that it does not originate FHA loans with prohibited restrictive covenants.

  •  
    Status
      Open
      Closed
    2017-LA-1803-001-D

    Provide training to its employees regarding HUD’s requirements related to prohibited restrictions on conveyance.

Housing

  •  
    Status
      Open
      Closed
    2017-PH-1006-001-D

    Provide training and technical assistance to the owner and its management agent to ensure compliance with the terms of its regulatory agreement and applicable HUD requirements.

  •  
    Status
      Open
      Closed
    2017-PH-1006-002-A

    Submit a project owner’s or management agent’s certification for identity-of-interest agents, a management entity profile, a management plan, and other required documentation for review and approval.

  •  
    Status
      Open
      Closed
    2017-PH-1006-002-B
    $402,975
    Questioned Costs

    Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.

    Request retroactive approval of the fees paid to the identity-of-interest entity totaling $402,975 and any fees incurred outside our audit period, including fiscal year 2017, when submitting the project owner’s or management agent’s certification for identity-of-interest agents in response to recommendation 2A. If the request is not approved retroactively, the owner should repay the project from nonproject funds for the amount that was not approved.

  •  
    Status
      Open
      Closed
    2017-PH-1006-002-C

    Evaluate the owner’s capability to effectively manage the project and consider whether independent professional management services are needed.

Housing

  •  
    Status
      Open
      Closed
    2017-LA-1802-001-A
    $408,295
    Funds Put to Better Use

    Recommendations that funds be put to better use estimate funds that could be used more efficiently. For example, recommendations that funds be put to better use could result in reductions in spending, deobligation of funds, or avoidance of unnecessary spending.

    Work with HUD to nullify the restrictions on conveyance that violate HUD policy or indemnify HUD. This action will protect HUD against future losses of $381,823 for the seven loans.

  •  
    Status
      Open
      Closed
    2017-LA-1802-001-B
    $26,472
    Questioned Costs

    Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.

    Repay HUD $26,472 for partial claims paid on one FHA loan that contained prohibited restrictive covenants.

  •  
    Status
      Open
      Closed
    2017-LA-1802-001-C

    Develop and implement policies and procedures to identify prohibited restrictions on conveyance to ensure that it does not originate FHA loans with prohibited restrictive covenants.

  •  
    Status
      Open
      Closed
    2017-LA-1802-001-D

    Provide training to its employees regarding HUD’s requirements related to prohibited restrictions on conveyance.

Housing

  •  
    Status
      Open
      Closed
    2017-DE-1003-001-A

    Develop and implement controls over owner contributions and owner distributions to ensure compliance with its regulatory agreement and HUD regulations.

  •  
    Status
      Open
      Closed
    2017-DE-1003-001-B

    Complete HUD-approved training regarding owner contributions and distributions.

  •  
    Status
      Open
      Closed
    2017-DE-1003-001-C
    $15,000
    Questioned Costs

    Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.

    Repay its project’s operating account for the ineligible $15,000 disbursement from non-project funds.