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Key Details
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  Open
  Closed
Funds Put to Better Use
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.

Questioned Costs
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.

Sensitive
Sensitive

Sensitive information refers to information that could have a damaging import if released to the public and, therefore, must be restricted from public disclosure.

Priority
Priority

We 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.

Export Search
Date Issued

Deputy Secretary

  •   2024-IG-0001-001-A
    Priority
    We recommend that the Deputy Secretary Develop and execute a detailed plan and timeline for both testing and reporting estimates of improper payments in the PIH-TBRA and PBRA programs in compliance with Federal law and OMB guidance.

Special Inquiry

  •   2023-IG-002-1
    Priority

    HUD (a) identify all contracts related to its programs that pre-date July 1, 2013 and that have not yet been modified to include Section 4712 whistleblower protections; and (b) review all contracts entered into on or after July 1, 2013, to ensure they include a clause that requires contractors to comply with Section 4712.


    Status

    We have not yet reached agreement on a management decision.


    Analysis

    To fully address this recommendation, HUD must (a) identify all contracts related to its programs that pre-date July 1, 20213 and that have not yet been modified to include Section 4712 whistleblower protections; and (b) review all contracts entered on or after July 1, 20213, to ensure they include a clause that requires contractors to comply with Section 4712.

    Implementation of this recommendation will ensure that Section 4712 whistleblower protections will apply to all individuals working for HUD contractors.

  •   2023-IG-002-2
    Priority

    Seek voluntary cooperation from program participants to proactively modify pre-2013 contracts for the purpose of including a clause requiring compliance with Section 4712.


    Status

    We have not yet reached agreement on a management decision.


    Analysis

    To fully address this recommendation, HUD must provide evidence that it has sought voluntary cooperation from program participants to proactively modify pre-2013 contracts for the purpose of including a clause requiring compliance with Section 4712.

    Implementation of this recommendation will ensure that Section 4712 whistleblower protections will apply to all individuals working for HUD contractors.

  •   2023-IG-002-3
    Priority

    Use its best efforts to include a clause requiring compliance with Section 4712 at the time of major modifications to contracts with program participants with whom HUD is unable to gain voluntary cooperation.


    Status

    We have not yet reached agreement on a management decision.


    Analysis

    To fully address this recommendation, HUD must provide evidence that it has taken steps to ensure that it is including a clause requiring compliance with Section 4712 at the time of major modifications to contracts with program participants with whom HUD is unable to gain voluntary cooperation.

Public and Indian Housing

  •   2023-CH-0004-001-B
    Priority

    Develop and implement training for field offices that addresses reviewing or following up with PHAs about the correction of life-threatening and non-life-threatening deficiencies and how (1) to review physical inspection reports to effectively ensure that PHAs correct physical deficiencies, (2) PHAs should address or correct each type of deficiency observed in the REAC physical inspection report, and (3) to use PASS or any future tracking system.


    Status

    On March 27, 2024, the OFO will host its inaugural office hours to discuss the life threatening and severe deficiencies protocol with FO staff.  The agenda for the training will include the NSPIRE system and the timeliness and responsibilities for correcting life-threatening and non-life threatening deficiencies.


    Analysis

    To fully address this recommendation, OFO must provide evidence that the training it develops and implements addresses reviewing or following up with PHAs about the correction of life-threatening, severe,  and non-life-threatening deficiencies and how (1) to review physical inspection reports to effectively ensure that PHAs correct physical deficiencies, (2) PHAs should address or correct each type of deficiency observed in the REAC physical inspection report, and (3) to use PASS or any future tracking system.

    Implementation of this recommendation will result in public housing units that are decent, safe, and sanitary because it mandates oversight to ensure PHAs are addressing identified deficiencies.

  •   2023-CH-0004-002-C
    Priority

    Develop and implement a nationwide protocol for field offices, describing how PHA self-inspections should be reviewed, based on REAC's determination of the number and frequency of PHA self-inspections.


    Status

    The OFO is working on the protocol/job aid and will keep OIG updated on progress made.  The final action target date is August 15, 2024.


    Analysis

    To fully resolve this recommendation, HUD must provide evidence that demonstrates it developed a nationwide protocol and implemented it across all HUD field offices.

Public and Indian Housing

  •   2023-CH-0003-001-B
    Priority

    Implement adequate policies, procedures, and controls to ensure that public housing properties will be inspected within required timeframes.


    Status

    NSPIRE regulations clarified/modified the timing for which inspections should occur. The date for inspection of each public housing property must then be programmed into HUD's system to ensure that inspections occur within required timeframes. The Real Estate Assessment Center (REAC) continues to work with its management and system support contractors on the list of public housing properties to inspect and the date the inspections should be completed by under the new NSPIRE regulations. REAC is in the process of adjusting the list based on information relating to small, rural public housing. REAC believes that it is on track to meet the final action target date of May 31, 2024.


    Analysis

    To fully address this recommendation, HUD must provide evidence demonstrating that it has implemented control activities that ensure public housing properties are inspected within required timeframes.

    Implementation of this recommendation will result in HUD accurately tracking the dates in which public housing properties should be inspected and that they are timely completed.

Chief Financial Officer

  •   2023-FO-0009-001-A
    Priority

    Establish an improper payment council within HUD that consists of senior accountable officials from across the Department with a role in the effort that would work to identify risks and challenges to compliance and identify solutions as a collaborative group.


    Status

    The OCFO believes that these recommendations cannot be completed by the OCFO because the OCFO is dependent on other HUD offices.  The OCFO believes that this should be closed in light of the recommendation we made in the PIIA Management Alert (2024-IG-0001).


    Analysis

    In response to the Management Alert, the Deputy Secretary stated that she would provide a plan in 30 days.  However, HUD has not provided its plan or a management decision for this recommendation.  The OIG is waiting for this information from the Deputy Secretary to determine if the plan is sufficient to close this open recommendation to the OCFO.

Government National Mortgage Association

  •   2023-KC-0003-001-B
    Priority

    Update its policy and procedures to define what type of information Ginnie Mae may disclose and how it will handle protected information before extinguishment.


    Status

    Ginnie Mae planned to incorporate the existing Ginnie Mae Confidential Information Policy into its Default Playbook and identify and log information that can be selectively shared in rapid relocation execution. The final action target date is May 30, 2024.  As of March 6, Ginnie Mae is still on target for meeting this date.


    Analysis

    To fully address this recommendation, Ginnie Mae must provide evidence that it has updated its policies and procedures to define what type of information it may disclose and how it will handle protected information before extinguishment. Ginnie Mae stated that it is currently on track to fully address the recommendation on time.

    Implementation of this recommendation will result in Ginnie Mae more effectively protecting its portfolio.

  •   2023-KC-0003-001-C
    Priority

    Update its Policies and procedures to define how Ginnie Mae will determine the portfolio value and price before Sale.


    Status

    Ginnie Mae planned to incorporate the existing Ginnie Mae Confidential Information Policy into its Default Playbook and identify and log information that can be selectively shared in rapid relocation execution. The final action target date is May 30, 2024.  As of March 6, Ginnie Mae is still on target for meeting this date.


    Analysis

    To fully address this recommendation, Ginnie Mae must provide evidence that it has updated its policies and procedures to define what type of information it may disclose and how it will handle protected information before extinguishment. Ginnie Mae stated that it is currently on track to fully address the recommendation on time.

    Implementation of this recommendation will result in Ginnie Mae more effectively protecting its portfolio.

  •   2023-KC-0003-001-D
    Priority

    Update its policies and procedures to define how Ginnie Mae intends to identify and evaluate prospective buyers to ensure its ability to absorb the extinguished portfolio before executing the purchase and sale agreement.


    Status

    Ginnie Mae planned to incorporate impact analysis evaluation of each prospective buyer to confirm compliance post-transfer. This will include key portfolio indicators and will mirror similar activities currently performed on select standard pool transfer participants. The final action target date is May 30, 2024.  As of March 6, Ginnie Mae is still on target for meeting this date.


    Analysis

    To fully address this recommendation, Ginnie Mae must provide evidence that it has updated its policies and procedures to define how it intends to identify and evaluate prospective buyers to ensure its ability to absorb the extinguished portfolio before executing the purchase and sale agreement. Ginnie Mae stated that it is currently on track to fully address the recommendation on time.

    Implementation of this recommendation will result in Ginnie Mae more effectively protecting its portfolio.

Lead Hazard Control

  •   2021-OE-0011b-01
    Priority

    Update HUD regulations, policies, and procedures following the regulatory process required by the amended Lead Safe Housing Rule, in consideration of CDC's lowered BLRV of 3.5 ug/dL.


    Status

    On March 4, 2024, the Office of Lead Hazards Control and Healthy Homes (OLHCHH) informed us that it has drafted the Federal Register notice of its request for information from Lead Safe Housing Rule stakeholders and the general public on its proposal to adopt the Centers for Disease Control and Prevention's (CDC) blood lead reference value (BLRV) of 3.5 µg/dL as its elevated blood lead level (EBLL) under the rule.  The current EBLL is 5 µg/dL.  OLHCHH will be obtaining clearance of the notice, publishing the cleared version, and reviewing public comments in preparing to decide whether to change the rule's current level, and if so, to what level.  OLHCHH plans on publishing the Federal Register notice by June 30, 2024, with a 60-day comment period.


    Analysis

    To fully address this recommendation, OLHCHH must provide evidence that it has updated its regulations, policies, and procedures so that they are consistent with CDC’s lowered BLRV of 3.5 ug/dL.
    Alternatively, OLHCHH must establish that its research led it to determine that environmental interventions in cases of children with EBLLs between 3.5 and 4.9 µg/dL were ineffective in reducing the children’s blood lead levels and that lowering HUD’s EBLL regulation to 3.5 µg/dL is unnecessary.

    Implementation of this recommendation will help ensure children living in public housing with EBLLs receive effective environmental interventions.

Public and Indian Housing

  •   2021-OE-0011b-06
    Priority

    PIH in coordination with other HUD offices as necessary, research and address potential causes of the variance in the number of EBLL cases among States on the EBLL tracker and identify solutions that are within HUD's control.


    Status

    On February 23, 2024, the Office of Field Operations (OFO) provided the following update based on a reported exchange with OLHCHH:

    Because health care providers typically test children and adults who are at a high risk for lead exposure, the individuals tested are not representative of the entire U.S. population.  Moreover, state requirements for blood lead testing and reporting vary based on local conditions, making these data incomparable across different locations or generalizable at the national, state, or local level.  Another significant issue is the use of the term “screening.”  Many health care providers do not test the blood unless a verbal screening indicates that a child is at risk.  This means that in some areas of the country, blood testing is not performed because parents have not identified conditions that would prompt a physician to test the child through capillary or venous.

    Therefore, implementing the recommendation falls outside the purview of OFO and OFO requested closure of this recommendation.


    Analysis

    We do not agree with the recommendation closure request.  On February 23, 2024, we responded to OFO that to close this recommendation, we would need the evidence and information that OIG and OFO had previously agreed upon.   We had previously agreed that to close this recommendation, OFO would need to provide evidence of meetings held and summaries of the research it conducted.  Our request to OFO was as follows:

    For example, what was the exchange with OLHCHH, did OFO coordinate with any other offices, and what research was conducted?  The evidence should ensure that our recommendation for finding EBLL Cases Were Primarily Located in Only Two States (see report pages 15-16) is fully addressed.  In an August 2022 meeting with us, HUD officials suggested several potential causes for the disproportionate number of EBLL cases on the EBLL tracker.  This recommendation asks OFO to research those potential causes (and any other causes identified) for the variances and then determine what HUD could do to address it.

    On March 7, 2024, we offered to meet with OFO to discuss the recommendation.  On March 8, 2024, OFO responded that it would continue to provide monthly updates on the recommendation.  Therefore, we will continue to follow up with OFO monthly on this recommendation.

Chief Financial Officer

  •   2023-FO-0001-001-A
    Priority

    Perform a complete agency-wide fraud risk assessment (which incorporates the fraud risk assessments performed at the program level) and use the results to develop and implement an agency-wide plan to move HUD’s fraud risk management program out of the ad hoc phase.


    Status

    HUD continues to make progress.  CRO update- We have made tremendous progress in advancing HUD’s Fraud Risk Management program. Below is a summary list of activities and impact. Note that in some areas we speak generally of risk management, and it impacts fraud risks as well.

    1. HUD leadership effected its Fraud Risk Policy on March 31, 2022. 

      a. Since then, we have integrated fraud risk considerations into risk assessment work completed across HUD, to include processes for FERAs and the annual risk profile refresh.

    2.  Leveraging the history of reports issued by HUD oversight partners, we: 

      a. Compiled program level oversight reports to identify fraud risk concerns;
      b. Initiated a repository to stratify elements of the reports to isolate fraud risk concerns; and 
      c. Isolated trends and themes from the source reports.
      d. This baseline work will support the Department’s Fraud Risk Exposure report, due September 2024.

    3. Established a Fraud Risk Work Group to engage cross-agency representation from program offices and oversight partners to support strengthening HUD’s fraud risk culture.  The FRWG will use the trends and themes (from above) to collaborate on training and building awareness of common risk concerns throughout their organizations and across HUD.
    4. HUD’s Risk Management Council hosted its premiere HUD Risk Symposium on Enterprise and Fraud Risk Management, on September 21, 2023 to strengthen cultural awareness and the tone at the top.

      a. Program offices and external oversight partners have committed to participating in the delivery of this immersive effort; sharing how they are using risk information to achieve their mission, updates on risk profile mitigation, and input from oversight partners on how HUD can use their work products to advance the risk culture across the Department.

    5. HUD’s Front End Risk Assessment policy was updated September 2022 to add a Fraud Risk factor, including sub-elements from GAO Fraud Risk Framework.

      a. FERAs from the 2022 and 2023 appropriations were completed with using fraud risk considerations from this updated policy.

    6. Congressional budget appropriators approved HUD to establish the Office of the Chief Risk Officer. Organizational realignment is underway, with HUD dedicating FTEs to focus on Enterprise and Fraud Risk Management.
    7. HUD continues to elevate fraud risks, along with other federal agencies, during Fraud Risk Month of November.
    8. CRO was added to HUD’s Insider Threat Team, to support mitigation of HUD’s risk exposures.
    9. CRO is engaging Risk integration partners, from budget, strategic planning, information technology, and workforce management, to support use of risk information in critical decision-making processes across the Department. 
    10. CRO is supporting the Program Office Risk Officers with establishing risk programs within the Program Offices to draw more direct attention to their risk management activities.
       

    Analysis

    To fully address this recommendation, HUD must provide evidence that it has performed an agency-wide fraud risk assessment performed at the program level, adopted and implemented its fraud risk assessment program departmental policy and that each HUD program office has established office-specific risk programs.

    Implementation of this recommendation will result in HUD better safeguarding taxpayer dollars and decrease improper payments.

Public and Indian Housing

  •   2023-CH-0001-001-B
    Priority

    Requires the REAC in coordination with OFO to determine the number of developments and associated units that contain lead-based paint and lead-based paint hazards.


    Status

    In May 2023, HUD published a final rule establishing a new approach to defining and assessing housing quality: The National Standards for the Physical Inspection of Real Estate (NSPIRE). Public Housing regulations were amended, and Public Housing program participants were required to comply with this final rule and use the NSPIRE standards starting July 1, 2023. The Real Estate Assessment Center and Office of Field Operations will collaborate with the Office of Lead Hazard Control and Healthy Homes, the Office of Policy Development and Research, and a statistician to evaluate data collected under the NSPIRE inspection program to estimate the number of public housing developments and associated units that contain lead-based paint and lead-based paint hazards. The final action target date is March 31, 2025.


    Analysis

    To address this recommendation, HUD will need to provide evidence that it collected and evaluated data under NSPIRE and estimated the number of public housing developments and associated units that contain lead-based paint and lead-based paint hazards.  Implementation of this recommendation will assist HUD in working with PHAs to address the public housing units that contain lead-based paint and lead-based paint hazards and help HUD’s oversight of units in need of hazard reduction.

Lead Hazard Control

  •   2023-IG-0001-001-A
    Priority

    Update applicable requirements to require assisted property owners, including PHAs, to maintain adequate documentation to support their determinations that maintenance and hazard reduction activities that disturb surfaces with lead-based paint qualify for the de minimis exemption from the lead-safe work practices under the Lead Safe Housing Rule.


    Status

    HUD has completed its data collection efforts and plans to use the feedback to prepare a notice to assisted targeted housing owners and public housing agencies.  The notice is being finalized for issuance.   HUD also plans to use the feedback it received from its data collection efforts to conduct training webinars.


    Analysis

    To implement this recommendation, HUD needs to provide evidence that it has prepared and issued a notice to target housing owners and public housing agencies on the de minimis exception and conducted trainings/webinars on requirements and best practices pertaining to de minimis.

    Implementation of this recommendation and associated corrective actions will ensure assisted property owners are sufficiently informed regarding the requirements to support their determinations that maintenance and hazard reduction activities that disturb surfaces with lead-based paint qualify for the de minimis exemption from the lead safe work practices under the Lead Safe Housing Rule and that assisted property owners are conducting this work safely, thereby ensuring households are residing in safe and healthy HUD assisted housing.

Chief Financial Officer

  •   2022-FO-0005-001-A
    Priority

    We recommend that the Deputy Chief Financial Officer…In collaboration with all involved program offices, develop and implement a sampling methodology that allows for a sample size that reasonably allows for the testing of the complete payment cycle within the PIIA reporting timeframe.


    Status

    These recommendations remained closed per HUD; however, we continue to identify this as a priority open recommendation because HUD continues to be challenged to fully implement this recommendation.  Due to this, HUD OIG issued a management alert to the HUD Deputy Secretary entitled "Action Is Needed From HUD Leadership To Resolve Systemic Challenges With Improper Payments", on January 23, 2024.  In response to the alert, HUD is working on a plan to address the challenges encountered by the OCFO and bring the Department into compliance.  Part of this plan should include information about how the Department plans to address this recommendation.


    Analysis

    HUD has been challenged with developing a compliant sampling methodology that can test the full payment cycle and that can be executed within the required timeframe. HUD’s sampling methodology, associated sample testing, and statistical estimation of improper payments could not be completed in time for the required annual reporting of improper payment estimates in the Agency Financial Report (AFR), normally issued in November. To fully address this recommendation, HUD must use a sampling methodology that tests the full payment cycle, and the associated sample testing and statistical estimation must be completed in time to include in the AFR.

    Implementation of this recommendation will result in HUD better safeguarding taxpayer dollars and decrease improper payments.

Chief Information Officer

  •   2021-OE-0001-08
    Sensitive
    Priority

    Define and communicate policies and procedures to ensure that its products, system components, systems, and services comply with its cybersecurity and SCRM requirements. This recommendation includes:

    1. Identification and prioritization of externally provided systems (new and legacy), components, and services.
    2. How HUD maintains awareness of its upstream suppliers.
    3. The integration of acquisition processes tools, and techniques to use the acquisition process to protect the supply chain.
    4. Contract tools or procurement methods to confirm that contractors are meeting their obligations (derived from OIG FISMA metric 14).

     


    Status

    As of March 6, 2024, HUD OCIO and OCPO were collaborating on policy updates. HUD reported to HUD OIG on February 8, 2024, that the policy requires clearance before being finalized. Once finalized and approved, HUD will provide the evidence to OIG for closure.


    Analysis

    To fully address this recommendation, HUD must establish that it has defined and communicated policies and procedures to ensure that its products, system components, systems, and services comply with its cybersecurity and SCRM requirements.

    Implementation of this recommendation will result in HUD continuing to mature in supply chain risk management, establishing and defining the policies and procedures of SCRM requirements as it relates to systems and system components.

2020-OE-0004 | November 17, 2021

HUD’s Processes for Managing IT Acquisitions

Chief Procurement Officer

  •   2020-OE-0004-03
    Priority

    Evaluate IT acquisition process workflows and identify ways to simplify the processes, facilitate more effective stakeholder coordination across offices, and create efficiencies when possible.


    Status

    On February 8, 2024, OIG and HUD met to discuss the closure requirements for this recommendation. HUD planned to meet internally, review, and update internal governance processes and respond to OIG by April 2024.


    Analysis

    To fully address this recommendation, HUD must provide evidence that it has published its standard operating procedures (SOP). During a meeting with HUD in October 2023, HUD OCPO stated that it will publish the SOPs by March 2024.

    Implementation of this recommendation will result in a defined IT acquisition process workflow standard operation procedure to ensure coordination across program offices.

Housing

  •   2021-KC-0004-001-A
    Priority

    Develop a comprehensive process to ensure that complaints received by HUD’s Multifamily Housing Clearinghouse are resolved in a timely manner.


    Status

    HUD has requested as part of its fiscal year 2024 budget within the Information Technology Fund for system enhancements to coordinate tenant complaints throughout Multifamily Housing, the performance based contract administrators, and the Multifamily Clearinghouse call center.  Housing has not received funding for the FHA Resource Center.


    Analysis

    To fully address this recommendation, HUD must provide evidence that it has transitioned the Multifamily Clearinghouse responsibilities to the FHA resource center and that it has finished developing, has implemented, and is successfully using the FHA’s automated monitoring system. Implementation of this recommendation will result in a timelier resolution of complaints submitted by those living in multifamily member housing units.