The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General audited the Lansing Housing Commission's (Commission) nonprofit development activities. The review of public housing authorities' development activities is set forth in our fiscal year 2007 annual audit plan. We selected the Commission because it was identified as having high-risk indicators of nonprofit development activity. Our objective was to determine…

The U.S. Department of Housing and Urban Development (HUD) Office of Inspector General reviewed the City of St. Louis' use of HOME Investment Partnerships Program (HOME) funds. Our audit objective was to determine whether the City used HOME funds for reasonable and necessary development costs. We concluded that The City used HOME funds for costs that were not reasonable and necessary to produce housing for low-income families. Additionally, it…

The Inspector General Act of 1978 requires the Inspector General to prepare semiannual reports summarizing the activities of the Office of Inspector General for the preceding six month periods. The semiannual reports are intended to keep the Secretary and the Congress fully informed of significant findings, progress the Agency has made and recommendations for improvement.

The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General audited HUD's use of residual receipts in lieu of reserve for replacement funds. The objective of the audit was to determine whether HUD appropriately authorized residual receipt withdrawals in lieu of reserve for replacement funds for new regulation multifamily projects. HUD inappropriately authorized the use of more than $3.2 million in residual receipt…

The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General audited HUD's oversight of the Federal Housing Administration (FHA)-insured home equity conversion mortgages (HECM) program. We initiated the audit as part of the activities in our 2008 annual audit plan. Our audit objective was to assess elements of HUD's oversight of the HECM program. This is the first of two audit reports regarding the HECM program and…

The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General audited HUD's oversight of the underwriting of Federal Housing Administration (FHA)-insured loans for new construction properties located in the Federal Emergency Management Agency's (FEMA) designated special flood hazard areas. We initiated the audit as part of the activities in our 2007 annual audit plan. Our objective was to determine whether HUD had…

The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General audited the Springfield Housing Authority's (Authority) Section 8 Housing Choice Voucher program (program). The audit was part of the activities in our fiscal year 2008 annual audit plan. We selected the Authority based upon our analysis of risk factors relating to the housing agencies in Region V's jurisdiction. Our objective was to determine whether the…

The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General audited the City of Dayton's (City) Community Development Block Grant program (program). The audit was part of the activities in our fiscal year 2008 annual audit plan. We selected the City based upon our increased emphasis on HUD's Office of Community Planning and Development's programs and a citizen's complaint. Our objectives were to determine whether…

The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General audited the City of Cincinnati's (City) HOME Investment Partnerships Program (Program). The audit was part of the activities in our fiscal year 2007 annual audit plan. We selected the City based upon a request from HUD's Columbus Office of Community Planning and Development and our analysis of risk factors relating to Program grantees in Region V's…

We audited Wells Fargo Mortgage (Wells Fargo) as part of our annual audit plan objective of improving the integrity of single family insurance programs. Our objective was to determine whether Wells Fargo complied with U. S. Department of Housing and Urban Development (HUD) origination requirements for the Home Equity Conversion Mortgage program, commonly known as a reverse mortgage. Wells Fargo generally complied with HUD's reverse mortgage…

The U.S. Department of Housing and Urban Development's Office of Inspector General audited First National Bank of Gillette, Wyoming, a Federal Housing Administration (FHA)-approved direct endorsement lender, to determine whether it properly processed insured loans and to determine whether its quality control plan met the U.S. Department of Housing and Urban Development's (HUD) requirements. First National Bank did not follow HUD regulations…

The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General audited the Highland Park Housing Commission's (Commission) Public Housing program (program). The audit was part of the activities in our annual audit plan. We selected the Commission based upon its fiscal year 2005 independent auditor's report that identified it as having a high-risk program. Our objectives were to determine whether the Commission…

We audited the City of Durham (City), North Carolina's HOME Investment Partnerships (HOME) program. Our audit objective was to determine whether the City complied with applicable federal procurement requirements with respect to its homeowner rehabilitation activity. This is the second of two audits of the City's program. The City did not advertise for homeowner rehabilitation contractors as required. Also, it did not take necessary affirmative…

We audited the State of Colorado (State), Division of Housing's (Division) Community Development Block Grant (CDBG) program to determine whether the Division (1) awarded CDBG funds to ineligible projects and (2) properly identified and reported program income data. The Division used CDBG funds for ineligible and questionable projects. This condition occurred because management's main focus was on selecting projects that were for the greater…

We reviewed Doral Bank Puerto Rico (Doral), an approved issuer for the Government National Mortgage Association (Ginnie Mae). Our objective was to determine whether Doral complied with Ginnie Mae requirements associated with its mortgage-backed securities activities. The review was initiated in connection with the 2007 Ginnie Mae financial statement audit. Doral did not fully comply with Ginnie Mae requirements because it maintained seven…

We audited the City of Los Angeles Housing Department (Department) as a result of an earlier audit of its HOME Investment Partnerships Program (HOME) rehabilitation program, which detected problems with the Department's monitoring of HOME-assisted rental units. Our audit objective was to determine whether the Department complied with HOME affordability monitoring and inspection requirements regarding HOME-assisted rental units. We found the…

We audited Bethany Towers Apartments as part of our annual goal for auditing multifamily projects and in response to a request from the U.S. Department of Housing and Urban Development's (HUD) Tampa, Florida, Multifamily Division. We focused the audit on the nonprofit owner's and management agents' compliance with the project's regulatory agreement, applicable laws, and other HUD requirements pertaining to the sale and transfer of ownership…

HUD OIG audited the Miami Dade Housing Agency (Agency) capital fund program. The objective of the audit was to determine whether the Agency used capital fund program drawdowns in accordance with U.S. Department of Housing and Urban Development (HUD) requirements. The Agency did not use capital fund program drawdowns in accordance with HUD requirements. The Agency's internal controls over capital fund program drawdowns from HUD were inadequate.…

We audited the Housing Authority of Baltimore City's (Authority) administration of its leased housing under its Moving to Work Demonstration (Moving to Work) program based on our analysis of various risk factors relating to the housing authorities under the jurisdiction of the U.S. Department of Housing and Urban Development's (HUD) Baltimore field office. This is the second audit report issued on the Authority's program. The audit objective…