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HUD Did Not Always Enforce the Requirements of the Regulatory Agreements and HUD Handbooks Pertaining to Owner Advances and Distributions

The U.S. Department of Housing and Urban Development – Office of Inspector General audited HUD’s Office of Multifamily Housing Programs, based on an internal audit suggestion expressing concern that multifamily property owners took unauthorized distributions or owner advances with no consequence.

Summit Bradford Apartments, Tulsa, OK, Did Not Comply With the Requirements of Its Housing Assistance Payments Contract

We audited the Section 8 program administered by Summit Bradford Apartments in Tulsa, OK.  We selected Bradford because we were informed that its management agent may have received Section 8 subsidies for vacant units.  Our objective was to determine whether Summit Bradford Apartments, LP, the owner, and Summit Housing Partners, LLC, the management agent, administered Bradford’s Section 8 program in compliance with its housing assistance payments contract with the U.S.

The Michigan State Housing Development Authority, Lansing, MI, Did Not Follow HUD’s Requirements Regarding the Administration of Its Program

We audited the Michigan State Housing Development Authority’s multifamily project-based Section 8 program for new-regulation projects as part of the activities in our fiscal year 2013 annual audit plan.  We selected the Authority based on a referral from U.S.