Develop and implement formal procedures and guidance for the note sales program.
2017-KC-0006 | July 13, 2017
HUD Did Not Conduct Rulemaking or Develop Formal Procedures for Its Single- Family Note Sales Program
Housing
- Status2017-KC-0006-001-BOpenClosedClosed on May 12, 2020
2017-FW-1009 | June 28, 2017
Beverly Place Apartments Subsidized Nonexistent Tenants, Unqualified Tenants, and Tenants With Questionable Qualifications
Housing
- Status2017-FW-1009-001-AOpenClosed$574,930Questioned 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 May 01, 2018We recommend that the Southwest Region Director of Multifamily Housing require Beverly Place’s owner to repay HUD $574,930 for subsidized units that were not occupied by qualified tenants. Repayment must be from non-Federal funds.
- Status2017-FW-1009-001-BOpenClosed$150,082Questioned 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 September 21, 2020We recommend that the Southwest Region Director of Multifamily Housing require Beverly Place’s owner to provide support to show that the subsidies for 11 tenants with falsified income were accurate or repay HUD $150,082 for those subsidies. Repayment must be from non-Federal funds.
- Status2017-FW-1009-001-COpenClosed$77,621Questioned 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 April 07, 2020We recommend that the Southwest Region Director of Multifamily Housing require Beverly Place’s owner to provide support to show that the subsidies for 18 tenants without files or without adequate income documentation in their files were accurate or repay HUD $77,621 for those subsidies. Repayment must be from non-Federal funds.
- Status2017-FW-1009-001-DOpenClosedClosed on February 25, 2020
We further recommend that the Southwest Region Director of Multifamily Housing require its contract administrator for Beverly Place to verify that the owner’s recently implemented quality control program is working as designed.
- Status2017-FW-1009-001-EOpenClosedClosed on February 25, 2020
We further recommend that the Southwest Region Director of Multifamily Housing ensure that the project-based contract administrator’s review process includes steps to obtain reasonable assurance that tenants being reported as subsidized at Beverly Place live in the subsidized units.
2017-FW-1008 | June 27, 2017
The Weslaco Housing Authority, Weslaco, TX, Paid Travel Costs That Did Not Comply With Federal, State, and Local Requirements
General Counsel
- Status2017-FW-1008-001-FOpenClosedClosed on September 05, 2019
Take appropriate administrative sanctions, including suspension, limited denial of participation, or debarment, against the commissioners.
2017-PH-1802 | June 27, 2017
Final Civil Action Borrower Settled Allegations of Making False Statements to HUD for a Home Purchase Under the Federal Housing Administration Mortgage Insurance Program
General Counsel
- Status2017-PH-1802-001-AOpenClosed$10,000Questioned 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.
Closed on July 12, 2024Acknowledge that the attached settlement agreement for $10,000 represents an amount due HUD.
2017-LA-1004 | June 12, 2017
Cypress Meadows Assisted Living, Antioch, CA, Was Not Administered in Accordance With Its Regulatory Agreement and HUD Requirements
General Counsel
- Status2017-LA-1004-001-AOpenClosed$15,000Questioned 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.
Closed on May 29, 2019Determine legal sufficiency and if legally sufficient, pursue civil and administrative remedies against Cypress Meadows, LLC; Skyline Crest Enterprises, LLC; the project’s owner; or all three for inappropriately disbursing funds in violation of the project’s regulatory agreement, operating lease agreement, and HUD requirements.
- Status2017-LA-1004-001-BOpenClosedClosed on September 19, 2018
Pursue appropriate civil money penalties and administrative actions, up to and including debarment, against Cypress Meadows LLC; Skyline Crest Enterprises LLC; the project’s owner; or all three for violating the project’s regulatory agreement, operating lease agreement, and HUD requirements.
Housing
- Status2017-LA-1004-001-COpenClosed$263,289Questioned 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 February 01, 2018Repay the project from non-project funds $263,289 for ineligible salary expenses.
- Status2017-LA-1004-001-DOpenClosed$283,307Funds 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.
Closed on February 01, 2018Remove $283,307 in ineligible accrued salary fees payable from its financial statements and records and ensure that these expenses are not accrued or paid for with project funds.
- Status2017-LA-1004-001-EOpenClosed$110,710Questioned 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 February 01, 2018Repay the project from non-project funds $110,710 for ineligible offsite accounting expenses.
- Status2017-LA-1004-001-FOpenClosed$129,416Funds 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.
Closed on February 01, 2018Remove $129,416 in ineligible accrued offsite accounting fees payable from its financial statements and records and ensure that these expenses are not accrued or paid for with project funds.
- Status2017-LA-1004-001-GOpenClosed$99,160Questioned 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 February 01, 2018Repay the project from non-project funds $99,160 for ineligible personal health insurance expenses of the owner.
- Status2017-LA-1004-001-HOpenClosed$4,179Questioned 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 February 01, 2018Repay the project from non-project funds $4,179 for excessive bank fees.
- Status2017-LA-1004-001-IOpenClosed$1,352Questioned 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 February 01, 2018Repay the project from non-project funds $1,352 for expenses related to the identity-of-interest hair salon.
- Status2017-LA-1004-001-JOpenClosedClosed on February 01, 2018
Obtain approval from HUD for a lease agreement with the hair salon.
- Status2017-LA-1004-001-KOpenClosed$65,232Questioned 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 February 01, 2018Provide documentation to support that $65,232 in disbursements was used on reasonable and necessary operating expenses or repay the project from non-project funds.
- Status2017-LA-1004-001-LOpenClosed$620,937Questioned 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 February 01, 2018Pay the project $620,937 in uncollected rent from non-project funds.