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Five Star Services, Inc., Fargo, ND, Did Not Submit Monthly Accounting Reports and Section 236 Excess Income Reports to HUD

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, audited Five Star based upon a request from the HUD Denver Office of Multifamily Housing. The objective of our audit was to determine whether Five Star submitted the required monthly accounting and Section 236 excess income reports to HUD. Five Star did not submit required monthly accounting reports and Section 236 excess income reports to HUD. It submitted monthly accounting reports only when it requested permission to use its reserve for replacement fund.

Multifamily Insured Project Saint Timothy's Tower, Compton, CA, Was Not Administered in Accordance With HUD Rules and Regulations

We reviewed the books and records of Saint Timothy’s Tower (project), a 114-unit U.S. Department of Housing and Urban Development (HUD)-insured (Section 236) Section 8 multifamily project consisting of 1 high-rise elevator building located in Compton, CA. We initiated the review in response to a request from the Departmental Enforcement Center due to its concerns about the owner’s use of project funds. Our objective was to determine whether the project was administered in accordance with HUD rules and regulations.