Acknowledge that $3,129,000 of the $5 million in the attached settlement agreement represents an amount due HUD.
2017-CF-1801 | January 18, 2017
Final Civil Action – Primary Residential Mortgage, Inc. Settled Allegations of Failing To Comply With HUD’s Federal Housing Administration Loan Requirements
General Counsel
- Status2017-CF-1801-001-AOpenClosed$3,129,000Questioned 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.
2017-NY-1005 | January 12, 2017
Union County, NJ’s HOME Investment Partnerships Program Was Not Always Administered in Compliance With Program Requirements
Community Planning and Development
- Status2017-NY-1005-001-BOpenClosed
We recommend that the Director of HUD’s Newark, NJ, Office of Community Planning and Development instruct County officials to strengthen the County’s administrative controls to ensure that its HOME program is reimbursed for assistance spent on terminated or noncompliant activities.
- Status2017-NY-1005-001-COpenClosed
We recommend that the Director of HUD’s Newark, NJ, Office of Community Planning and Development instruct County officials to provide environmental review documentation, such as environmental assessment and a phase I environmental review, for the activity to support compliance with environmental review requirements.
- Status2017-NY-1005-001-DOpenClosed
We recommend that the Director of HUD’s Newark, NJ, Office of Community Planning and Development instruct County officials to provide procurement documentation, such as proof of advertising, bids received, bid analysis reports, contracts, and other documents, for contracts associated with the three activities to support compliance with procurement requirements.
- Status2017-NY-1005-001-FOpenClosed$597,519Funds 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.
We recommend that the Director of HUD’s Newark, NJ, Office of Community Planning and Development instruct County officials to impose deed restrictions or other mechanisms approved by HUD on the two properties that received HOME assistance of $597,519 to enforce affordability requirements during the affordability period.
- Status2017-NY-1005-001-HOpenClosed
We recommend that the Director of HUD’s Newark, NJ, Office of Community Planning and Development instruct County officials to strengthen the County’s administrative controls to ensure compliance with environmental, procurement, and other program requirements.
- Status2017-NY-1005-001-IOpenClosed
We recommend that the Director of HUD’s Newark, NJ, Office of Community Planning and Development instruct County officials to provide HOME program training to County staff to ensure compliance with HOME program requirements.
- Status2017-NY-1005-001-JOpenClosed$573,689Funds 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.
We recommend that the Director of HUD’s Newark, NJ, Office of Community Planning and Development instruct County officials to reallocate the $573,689 awarded to the ineligible CHDO, thus ensure that the fund is put to better use.
- Status2017-NY-1005-001-NOpenClosed
We recommend that the Director of HUD’s Newark, NJ, Office of Community Planning and Development instruct County officials to reconcile the County’s carryover balance of HOME match as of September 30, 2015, for the ineligible HOME match contributions and the understated HOME match contributions.
- Status2017-NY-1005-001-OOpenClosed$92,557Funds 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.
We recommend that the Director of HUD’s Newark, NJ, Office of Community Planning and Development instruct County officials to disburse the $92,557 to pay eligible HOME costs before making additional drawdowns from LOCCS.
- Status2017-NY-1005-001-POpenClosed
We recommend that the Director of HUD’s Newark, NJ, Office of Community Planning and Development instruct County officials to strengthen the County’s financial controls over reconciling bank records to ensure that HOME funds in the local bank account are spent before drawdowns are made from LOCCS.
- Status2017-NY-1005-001-SOpenClosed
We recommend that the Director of HUD’s Newark, NJ, Office of Community Planning and Development instruct County officials to strengthen the County’s administrative controls to ensure that County staff adequately monitors its subgrantee for compliance with HOME program requirements and provide HOME program training to the County subgrantee’s staff.
2017-PH-1801 | January 05, 2017
Final Civil Action Borrower Settled Alleged Violations of Home Equity Conversion Mortgage Program
General Counsel
- Status2017-PH-1801-001-AOpenClosed$1,500Questioned 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.
Acknowledge that the attached settlement agreement for $1,500 represents an amount due HUD.
2014-KC-0002 | July 02, 2014
The Data in CAIVRS Did Not Agree with the Data in FHA’s Default and Claims System
Housing
- Status2014-KC-0002-001-BOpenClosed$9,501,619Funds 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.
PriorityPriorityWe believe these open recommendations, if implemented, will have the greatest impact on helping HUD achieve its mission to create strong, sustainable, inclusive communities and quality affordable homes for all.
Update selection rules for CAIVRS to provide for complete reporting of all ineligible borrowers to put $9.5 million to better use.
Status
In 2020, HUD suspended reporting delinquencies and defaults to the Credit Alert Verification Reporting System (CAIVRS) because these debts are owed to the lender and are not delinquent Federal debt. A debt is not delinquent until a payment is past due to HUD for a deficiency judgment against the borrower in connection with an FHA claim. Rather than add the missing borrowers to CAIVRS, HUD determined it would remove default and claim data from the system and use it to exclusively identify borrowers with delinquent Federal debt. This will resolve the issue of incomplete reporting of delinquent federal debts greater than 3 years old. As of early June 2024, the Office of Single Family Housing stated that it was on target to complete its action plan by June 28, 2024.
Analysis
To fully address this recommendation, HUD must provide evidence that it removed default and claim data from CAIVRS.
Implementation of this recommendation should result in HUD putting $9.5 million to better use.