We audited the City of Norfolk’s Community Development Block Grant program based on our annual audit plan and a risk analysis, which indicated that the City had the most open activities in Virginia.  Our objective was to determine whether the City justified its program activities by ensuring that they were properly supported by adequate documentation and met national objectives as required.  The City could not provide adequate…

We reviewed the Louisville-Jefferson County Metropolitan Government’s administration of its Homelessness Prevention and Rapid Re-Housing Program (HPRP) and Community Development Block Grant-Recovery (CDBG-R) program. We selected Louisville Metro for review because it received the largest grants in Kentucky with the exception of the State of Kentucky, and the U.S. Department of Housing and Urban Development (HUD) had not conducted monitoring of…

We audited the Virginia Housing Development Authority (Authority) because it received $44.2 million in Tax Credit Assistance Program (Program) funds under the American Recovery and Reinvestment Act of 2009 (Recovery Act). The Authority received the second largest amount of Program funds awarded in Region III. Our objective was to determine whether the Authority administered its Program in accordance with Recovery Act and applicable U.S.…

HUD OIG reviewed the Louisville/Jefferson County Metropolitan Government’s (Louisville Metro) Neighborhood Stabilization Program (program). We selected Louisville Metro for review based on its low percentage of obligations and the approaching September 20, 2010, deadline for obligating funds. Our objective was to evaluate Louisville Metro’s use of program funding, including the propriety of its activities, obligations, expenditures, and…

We audited the Fairfax, VA, branch office (branch office) of Prospect Mortgage, LLC (Prospect Mortgage), because it had one of the highest default rates for U.S. Department of Housing and Urban Development (HUD)-approved lenders for loans issued in the State of Maryland. Our objective was to determine whether Prospect Mortgage and its branch office complied with HUD regulations, procedures, and instructions in the origination and quality…

We audited the Housing Authority of Whitesburg, Kentucky (Authority) pursuant to a request by the director of the Office of Public Housing, Kentucky State Office. Our objective was to determine whether the Authority properly accounted for cash receipts and disbursements, and made procurements in accordance with federal requirements. The Authority badly mismanaged its operations. It did not properly account for rental receipts of about $134,…

We audited the Yorkville Cooperative (Cooperative) based on a request from the U.S. Department of Housing and Urban Development’s (HUD) Richmond Multifamily Program Center and a citizen complaint. The objective of the audit was to determine whether the Cooperative administered its Section 221(d)(3) property and housing assistance contract according to its regulatory agreement and HUD requirements. The Cooperative did not administer its Section…

We audited the Richmond Redevelopment and Housing Authority (Authority) administration of its housing assistance payments for leased housing. This is the last of three audit reports we plan to issue on the Authority's program. The audit objective addressed in this report was to determine whether the Authority properly maintained documentation to support housing assistance payments and accurately calculated them. The Authority did not properly…

We audited the City of Norfolk's (City) HOME Investment Partnerships (HOME) program based on a request from the Community Planning and Development Division in the U.S. Department of Housing and Urban Development's (HUD) Richmond, Virginia, field office. Our audit objective was to determine whether the City properly administered its HOME program by following HUD requirements related to homebuyer assistance, modernization rehabilitation, and…

We audited the Richmond Redevelopment and Housing Authority's (Authority) administration of its housing quality standards inspection program for its Section 8 Housing Choice Voucher program as part of our fiscal year 2008 audit plan. Our audit was to determine whether the Authority adequately administered its Section 8 housing quality standards inspection program to ensure that its program units met housing quality standards in accordance with…

Attached is the final report on our audit of the Richmond Redevelopment and Housing Authority (Authority), Richmond, Virginia, Audit Report Number 2008-PH-1006, dated April 15, 2008. Our audit objectives were to determine whether the Authority adequately managed its waiting list, met HUD's lease-up thresholds, and operated its Family Self-Sufficiency program according to HUD requirements. The Authority's Housing Choice Voucher program was…

A federal jury convicted Sohaib Akhter, 34, of Alexandria, Virgina, today on charges of conspiracy to commit computer fraud, password trafficking, and possession of a firearm by a prohibited person.“Sohaib Akhter harmed Americans who trusted their government with personal information and sensitive requests,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “His conviction shows that getting fired from…

The Justice Department announced today that Joseph E. Johnson, the owner and manager of residential rental properties in Lexington, Kentucky, agreed to pay $510,000 to resolve a lawsuit alleging that he sexually harassed female tenants in violation of the Fair Housing Act.“The Justice Department will not tolerate violations of our federal fair housing laws, including landlords’ unwelcome sexual advances and requests for sexual favors,” said…

RICHMOND, Va. – A Richmond woman was sentenced today to three years in prison for wire fraud in connection with her operation of a homeless shelter focused on women and children.According to court documents, Kia A. Player, 41, won a grant to operate an inclement weather shelter for homeless women and children in the Richmond metropolitan area, named RVA Sister’s Keeper. RVA Sister’s Keeper obtained over $995,000 in governmental funding from the…

The Justice Department announced today that the owners and property managers of residential rental properties in Lexington, Kentucky have agreed to pay $850,000 to resolve a lawsuit alleging that two property managers sexually harassed female tenants in violation of the Fair Housing Act.“Women should never feel unsafe in their own homes,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “The…

Two Virginia men were arrested today for their roles in a conspiracy to destroy government databases hosted by a federal government contractor, among other crimes.“These defendants abused their positions as federal contractors to attack government databases and steal sensitive government information. Their actions jeopardized the security of government systems and disrupted agencies’ ability to serve the American people,” said Acting Assistant…

RICHMOND, Va. – A Richmond woman pled guilty yesterday to wire fraud in connection with her operation of a homeless shelter focused on women and children.According to court documents, Kia A. Player, 41, won a grant to operate an inclement weather shelter for homeless women and children in the Richmond metropolitan area, named RVA Sister’s Keeper. RVA Sister’s Keeper obtained over $995,000 in governmental funding from the United States Department…

NEWPORT NEWS, Va. – A Hampton man was sentenced today to 17 years in prison for wire fraud, aggravated identity theft, and race-based interference with housing and employment.According to court documents, David L. Merryman, 59, owned 39 rental properties in Newport News and 23 more in Hampton.  Many of Merryman’s rental properties were in poor condition and located in low-income neighborhoods. He primarily rented the properties to…