Consider requiring water testing for all FHA-insured properties.
2017-PH-0003 | September 28, 2017
HUD Did Not Provide Sufficient Guidance and Oversight To Ensure That FHA-Insured Properties Nationwide Had Safe Water
Housing
- Status2017-PH-0003-001-EOpenClosedClosed on December 30, 2019
2017-LA-1803 | September 27, 2017
RMS & Associates, Las Vegas, NV, Improperly Originated FHA-Insured Loans With Restrictive Covenants
Housing
- Status2017-LA-1803-001-AOpenClosed$2,460,446Funds 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 March 06, 2019Work 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.
- Status2017-LA-1803-001-BOpenClosed$26,242Questioned 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 05, 2018Repay HUD $26,242 for partial claims paid on two FHA loans that contained prohibited restrictive covenants.
- Status2017-LA-1803-001-COpenClosedClosed on February 27, 2019
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.
- Status2017-LA-1803-001-DOpenClosedClosed on February 27, 2019
Provide training to its employees regarding HUD’s requirements related to prohibited restrictions on conveyance.
2017-PH-1006 | September 24, 2017
The Owner of Schwenckfeld Manor, Lansdale, PA, Did Not Always Manage Its HUD-Insured Property in Accordance With Applicable HUD Requirements
Housing
- Status2017-PH-1006-001-DOpenClosedClosed on April 01, 2019
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.
- Status2017-PH-1006-002-AOpenClosedClosed on December 04, 2018
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.
- Status2017-PH-1006-002-BOpenClosed$402,975Questioned 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 November 08, 2018Request 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.
- Status2017-PH-1006-002-COpenClosedClosed on December 04, 2018
Evaluate the owner’s capability to effectively manage the project and consider whether independent professional management services are needed.
2017-LA-1802 | September 21, 2017
SecurityNational Mortgage Company, Las Vegas, NV, Improperly Originated FHA Loans for Properties With Restrictive Covenants
Housing
- Status2017-LA-1802-001-AOpenClosed$408,295Funds 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 March 06, 2019Work 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.
- Status2017-LA-1802-001-BOpenClosed$26,472Questioned 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 16, 2018Repay HUD $26,472 for partial claims paid on one FHA loan that contained prohibited restrictive covenants.
- Status2017-LA-1802-001-COpenClosedClosed on February 27, 2019
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.
- Status2017-LA-1802-001-DOpenClosedClosed on February 27, 2019
Provide training to its employees regarding HUD’s requirements related to prohibited restrictions on conveyance.
2017-DE-1003 | September 20, 2017
Baker Tower, Denver, CO, Incorrectly Disbursed Funds and Did Not Correctly Administer the Project’s Security Deposit Account
Housing
- Status2017-DE-1003-001-AOpenClosedClosed on January 12, 2018
Develop and implement controls over owner contributions and owner distributions to ensure compliance with its regulatory agreement and HUD regulations.
- Status2017-DE-1003-001-BOpenClosedClosed on January 12, 2018
Complete HUD-approved training regarding owner contributions and distributions.
- Status2017-DE-1003-001-COpenClosed$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 January 10, 2018Repay its project’s operating account for the ineligible $15,000 disbursement from non-project funds.
- Status2017-DE-1003-002-AOpenClosedClosed on January 10, 2018
Perform an analysis of all security deposits and ensure that the security deposit account is fully funded.
- Status2017-DE-1003-002-BOpenClosedClosed on January 18, 2018
Implement controls to ensure existing procedures are followed to maintain the project’s security deposit funds separately from all other accounts by depositing and disbursing all security deposit funds directly into and from the security deposit account.
2017-LA-1801 | September 19, 2017
Venta Financial Group, Inc., Las Vegas, NV, Improperly Originated FHA-Insured Loans With Restrictive Covenants
Housing
- Status2017-LA-1801-001-AOpenClosed$423,759Funds 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 March 06, 2019Work with HUD to nullify the restrictions on conveyance that violate HUD policy or indemnify HUD. This action will protect HUD against future losses of $418,277 for the eight loans.
- Status2017-LA-1801-001-BOpenClosed$5,482Questioned 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 03, 2018Repay HUD $5,482 for partial claims paid on two FHA loans that contained prohibited restrictive covenants.