Verify all management fees charged to the projects from 2013 through 2015 were appropriate.
2017-KC-1001 | December 14, 2016
Majestic Management, LLC, a Multifamily Housing Management Agent in St. Louis, MO, Did Not Always Comply With HUD’s Requirements When Disbursing Project Funds
Housing
- Status2017-KC-1001-001-DOpenClosedClosed on January 01, 2026
- Status2017-KC-1001-002-AOpenClosed$231,091Questioned 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.
Closed on January 01, 2026Require Majestic Management to reimburse the appropriate projects their portion of $231,091 for work not completed or overbilled.
- Status2017-KC-1001-002-BOpenClosed$462,281Questioned 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.
Closed on January 01, 2026Require Majestic Management to provide support that $462,281 paid for procurements was reasonable or reimburse the appropriate projects for the balance.
- Status2017-KC-1001-003-AOpenClosed$11,184Questioned 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.
Closed on January 01, 2026Reimburse the appropriate projects their portion of $11,184 that it charged for ineligible items.
- Status2017-KC-1001-003-BOpenClosed$48,891Questioned 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.
Closed on January 01, 2026Provide documentation to support that $48,891 was spent for eligible purposes or reimburse the appropriate projects for the balance.
2016-AT-1012 | August 28, 2016
The Municipality of Bayamon, PR, Did Not Always Ensure Compliance With HUD Program Requirements
Community Planning and Development
- Status2016-AT-1012-001-AOpenClosedClosed on January 01, 2026
Complete the implementation of the new accounting system and ensure it tracks program funds to a level that supports compliance with HUD requirements.
2014-KC-0002 | July 01, 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.
Closed on March 31, 2026Update selection rules for CAIVRS to provide for complete reporting of all ineligible borrowers to put $9.5 million to better use.
Corrective Action Taken
The Office of Single-Family Housing closed this recommendation based on it updating the data feed sent from its Single-Family Insurance System - Claims Subsystem (A43C) to CAIVRS to include all deficiency judgement data for all parties until resolved. HUD provided the Interface Control Document showing what data is sent to CAIVRS related to deficiency judgments. By taking these steps, HUD helped ensure complete reporting of all ineligible borrowers which should put $9.5 million to better use.
2012-AT-1009 | May 22, 2012
The Municipality of Bayamón, PR, Did Not Always Ensure Compliance With HOME Investment Partnerships Program Requirements
Community Planning and Development
- Status2012-AT-1009-002-BOpenClosed$537,773Questioned 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.
Closed on January 01, 2026Determine the eligibility of the $537,773 disbursed for the Ciudad de Ensueño project and reevaluate the feasibility of the activity. (Footnote 9) Total disbursements of $538,973 were adjusted to consider $1,200 questioned in recommendation 1F. The Municipality must reimburse its HOME program from non-Federal funds if HUD determines the activity to have been terminated.