We audited EdgeAlliance, Inc.’s Continuum of Care program funds for The Daniel R. Ruscitti Phoenix House (project).  The audit was part of the activities in our fiscal year 2015 annual audit plan.  We selected the project for review based upon a citizen’s complaint.  Our objectives were to determine whether EdgeAlliance complied with Federal requirements in its (1) maintenance of financial management systems for program funds and…

We audited loanDepot, LLC, based on a referral from the U.S. Department of Housing and Urban Development’s (HUD) Quality Assurance Division detailing a separate lender that originated Federal Housing Administration (FHA)-insured loans containing ineligible downpayment assistance gifts.  The focus on loans with Golden State Finance Authority (Golden State) gifts was a result of a separate audit (2015-LA-1009) on loanDepot’s use of…

We reviewed the City of Richmond’s Filbert Phase 1 and Filbert Phase 2 activities in response to the U.S. Department of Housing and Urban Development’s (HUD) San Francisco Office of  Community Planning and Development’s and HUD’s Office of Program Enforcement’s concerns over the City’s administration of its HOME Investment Partnerships Program, Community Development Block Grant (CDBG), and CDBG Recovery (CDBG-R) funding of Filbert Phase 1…

We audited loanDepot based on a referral from the U.S. Department of Housing and Urban Development’s (HUD) Quality Assurance Division detailing a separate lender that originated Federal Housing Administration (FHA)-insured loans containing ineligible downpayment assistance gifts.  We selected loanDepot due to its high volume of loans with downpayment assistance funds.  Our objective was to determine whether loanDepot originated FHA…

We audited the State of Illinois’ Community Development Block Grant Disaster Recovery program.  The audit was part of the activities in our fiscal year 2015 annual audit plan.  We selected the State’s program based on a congressional request from the Honorable Mark Kirk to review the State’s awards of program funds under the Consolidated Security, Disaster Assistance, and Continuing Appropriations Act of 2009 for three projects.…

We audited the U.S. Department of Housing and Urban Development’s (HUD) Resident Homeownership Program grant for Carmen-Marine Apartments (project).  The audit was part of the activities in our fiscal year 2015 annual audit plan.  We selected the project based on a request from HUD’s Chicago Multifamily Housing Hub.  Our objective was to determine whether the Carmen-Marine Cooperative and management agent operated the project in…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), conducted an investigation of Mason-McDuffie Mortgage Corporation to determine whether it violated HUD requirements when underwriting loans insured by the Federal Housing Administration (FHA).  Mason-McDuffie was approved on September 1, 2005, as an FHA mortgage lender, and its principal place of business is located in San Ramon, CA.  FHA is…

Due to concerns identified by the U.S. Department of Housing and Urban Development’s (HUD) Office of Community Planning and Development (CPD), we completed a limited scope, spinoff audit of Veterans First and reviewed additional grants not covered in our original audit (2015-LA-1002, issued April16, 2015).  CPD was concerned that HUD funds for two additional grants not reviewed in the first audit were used to cover shortfalls in Veterans…

We audited the Fresno Housing Authority due to a complaint alleging that the Authority steered contracts, did not seek competition for all of its required procurements, and did not maintain adequate supporting documentation.  The objective of the audit was to determine whether the Authority used its operating and capital funds in accordance with U.S. Department of Housing and Urban Development (HUD) requirements when procuring goods and…

HUD OIG assisted the U.S. Attorney’s Office, Northern District of Illinois, in the investigation of Lakeview Sheridan, LLC, and Fremont Sheridan Properties.  Lakeview Sheridan is a multifamily property located in Chicago, IL, and Fremont Sheridan was the management company for Lakeview Sheridan.  Under section 223(f) of the National Housing Act, HUD insured the mortgage on Lakeview Sheridan in May 2006 through its Federal Housing…

We audited the City of West Covina’s Community Development Block Grant program because of a news article 1  raising concerns about the City’s financial policies and past spending practices that included the mismanagement of funds.  The review was also the first time that the Office of Inspector General had conducted a review of the City.  Our objective was to determine whether the City administered its program in accordance with…

We audited the Housing Authority of the County of San Bernardino’s Shelter Plus Care program due to a public complaint alleging that the Authority disregarded U.S. Department of Housing and Urban Development (HUD) program requirements related to participants’ eligibility.  Our objective was to determine whether the Authority administered its program funds in accordance with HUD rules and requirements, specifically related to participants’…

We audited Sutton Irvine Residence, Inc.’s Section 202-funded project based on concerns expressed by the U.S. Department of Housing and Urban Development’s (HUD) Office of General Counsel, Departmental Enforcement Center, regarding the management of the project.  The concern was that Sutton Irvine had defaulted on its mortgage payments to HUD and may have diverted project funds for nonproject expenses.  Our audit objective was to…

We conducted a review of the Chicago Housing Authority’s payments for outside legal services in conjunction with an ongoing internal audit of the U.S. Department of Housing and Urban Development’s (HUD) oversight of public housing agencies’ expenditures for outside legal services.  Our review objective was to determine whether the Authority made payments for outside legal services in compliance with applicable requirements. We found that…

We audited Veterans First’s Supportive Housing Program (SHP) based on a referral from the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General’s Office of Investigation and a hotline complaint, alleging that Veterans First employees were directed to prepare false accounting documents.  Our objective was to determine whether expenditures Veterans First charged to its SHP grants and program fees it charged to…

The U. S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), conducted a limited review of the Oakland Housing Authority’s Moving to Work Housing Choice Voucher program’s use of exception payment standards exceeding the Authority’s 110 percent limit on fair market rents.  The review was initiated as a result of a congressional request alleging fraud, waste, and abuse by public housing agencies…

We audited the Chicago Housing Authority’s Moving to Work Housing Choice Voucher program as part of the activities in our fiscal year 2014 annual audit plan.  We selected the Authority based on a request from Congressman Aaron Schock and recent media attention regarding the Authority’s exception payment standards.  Our objective was to determine whether the Authority complied with its Moving to Work agreement, the U.S. Department of…

We audited New Image Emergency Shelter’s Housing Opportunities for Persons With AIDS (HOPWA) program based on a referral from the U.S. Department of Housing and Urban Development, Office of Inspector General’s (HUD OIG) Office of Investigation and a citizen complaint, alleging that New Image lacked adequate documentation to support program expenditures and employee salaries. Our objective was to determine whether New Image administered and…

We audited the City of Chicago’s HOME Investment Partnerships Program.  We selected the City’s Program based upon our analysis of risk factors related to Program grantees in Region 5’s jurisdiction.  Our objectives were to determine whether the City complied with HUD’s requirements regarding (1) leases between rental new construction projects’ owners and households, (2) use and reporting of Program income, and (3) monitoring of…

We initiated a review of the City of Los Angeles’ Community Development Block Grant (CDBG) program due to concerns that CDBG-funded assets may be at risk.  We performed our review to address questionable costs identified during a prior Office of Inspector General review (audit report 2014-LA-0001).  Our objective was to determine whether the City maintained the required documentation for its CDBG-funded projects to support its vested…