HUD's Office of Affordable Housing Programs Could Improve Its Oversight of Participating Jurisdictions' HOME Investment Partnerships Program-Funded Rental Housing Projects' Leases
We reviewed the U.S. Department of Housing and Urban Development’s (HUD) Office of Affordable Housing Programs’ oversight of leases in HOME Investment Partnerships Program-funded rental housing projects. The review was part of the activities in our fiscal year 2015 annual audit plan. Our objective was to determine whether HUD’s Office had adequate oversight of participating jurisdictions to ensure that leases between rental projects…
June 24, 2015
Memorandum
#2015-CH-0801
The City of New York, NY, Did Not Always Disburse Community Development Block Grant Disaster Recovery Funds in Accordance With Federal Regulations
We completed a review of the City of New York, Office of Management and Budget’s administration of the Business Loan and Grant Program funded with Community Development Block Grant Disaster Recovery (CDBG-DR) funds provided by the U.S. Department of Housing and Urban Development (HUD) to assist in the disaster recovery and rebuilding efforts resulting from Hurricane Sandy. The objectives of the audit were to determine whether the City (1…
June 11, 2015
Report
#2015-NY-1007
The Housing Authority of the County of San Bernardino, San Bernardino, CA, Used Shelter Plus Care Program Funds for Ineligible and Unsupported Participants
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’…
May 28, 2015
Report
#2015-LA-1004
The State of Wyoming Did Not Always Administer Its CDBG Program in Accordance With Applicable Requirements
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited the State of Wyoming’s Community Development Block Grant (CDBG) program run by the Wyoming Business Council. Our audit objective was to determine whether the State reimbursed only approved costs, its grant agreements contained all required language, it properly monitored its projects, and it ensured that projects met the national objective in…
May 25, 2015
Report
#2015-DE-1001
First Niagara Bank, Lockport, NY, Did Not Always Properly Implement HUD’s Loss Mitigation Requirements in Servicing FHA-Insured Mortgages
We completed a review of First Niagara Bank’s servicing of Federal Housing Administration (FHA)-insured mortgages and its implementation of the U.S. Department of Housing and Urban Development’s (HUD) Loss Mitigation program. We selected First Niagara Bank based on an Office of Inspector General risk assessment of single-family lenders. The objective of the audit was to determine whether First Niagara Bank properly serviced FHA-…
May 21, 2015
Report
#2015-NY-1006
The City of Paterson, NJ’s HOME Investment Partnerships Program Controls Did Not Ensure Compliance With Regulations
We audited the City of Paterson, NJ’s HOME Investment Partnerships Program based on a risk analysis of the City’s program that considered the amount of funding, the risk score assigned by the U.S. Department of Housing and Urban Development (HUD), our identification of potential issues, and Congress’ general interest in the HOME program. The objective of the audit was to determine whether City officials had established and implemented…
April 29, 2015
Report
#2015-NY-1005
Sutton Irvine Residence, Inc., Irvine, CA, Did Not Operate Its Section 202 - Funded Project in Accordance With HUD Rules and Requirements
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…
April 23, 2015
Report
#2015-LA-1003
The City of New York, NY, Generally Disbursed Community Development Block Grant Disaster Recovery Assistance Funds for Administrative Costs in Accordance With HUD Regulations
We audited the City of New York, Office of Management and Budget’s administration of the Community Development Block Grant Disaster Recovery Assistance (CDBG-DR) funds awarded to the City as a result of damages caused by Hurricane Sandy. This review was related to the disbursement of approximately $4 million in CDBG-DR funds pertaining to administration costs. The objectives of the audit were to determine whether the City (1)…
April 22, 2015
Report
#2015-NY-1004
Veterans First, Santa Ana, CA, Did Not Administer and Spend Its HUD Funding in Accordance With HUD Requirements
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…
April 15, 2015
Report
#2015-LA-1002
Redwood Juniper Tacoma Apartments Did Not Always Administer Its Program in Accordance With HUD Rules and Regulations
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited the Redwood Juniper Tacoma Apartments to determine whether Redwood Juniper’s owner took an unauthorized distribution in excess of surplus cash, procured services in accordance with HUD rules and regulations, and maintained an auditable waiting list. We selected the multifamily housing project for audit because it appeared that the project owner took…
April 13, 2015
Report
#2015-SE-1001
HUD’s Office of Community Planning and Development Did Not Always Pursue Remedial Actions but Generally Implemented Sufficient Controls for Administering Its Neighborhood Stabilization Program
We reviewed the U.S. Department of Housing and Urban Development (HUD), Office of
Community Planning and Development’s (CPD) Neighborhood Stabilization Program (NSP). We initiated the audit under the HUD Office of Inspector General’s (OIG) annual audit plan. Our objective was to provide an overall assessment of NSP, including assessing the sufficiency of HUD’s controls and determining whether HUD had improved its controls as a…
March 30, 2015
Report
#2015-AT-0001
Final Civil Action – Group One Mortgage, Inc., Settled Allegations of Failing To Comply With Federal Housing Administration Underwriting Requirements
HUD OIG assisted the U.S. Attorney’s Office, Southern District of Florida, in the civil investigation of Group One Mortgage, Inc. Group One’s principal place of business is located in Jupiter, FL. Group One has participated in the FHA insurance program since 2004 and became a direct endorsement lender in 2005. The direct endorsement program authorizes private-sector mortgage lenders to approve mortgage loans for FHA insurance…
March 26, 2015
Memorandum
#2015-CF-1801
Final Civil Action – Golden First Mortgage Corporation and Its Owner Settled Alleged Violations of Failing To Comply With Federal Housing Administration Underwriting Requirements (FHA ID #34475)
HUD OIG assisted in an investigation into alleged violations of Federal Housing Administration (FHA) regulations applicable to the direct endorsement program by Golden First Mortgage Corporation and its owner. Golden First is a former FHA-approved mortgage lender, with its principal place of business located in Great Neck, NY. Golden First participated in the direct endorsement program from 1989 until 2010. As a direct…
March 26, 2015
Memorandum
#2015-CF-1802
Final Civil Action – MetLife Home Loans, LLC, Settled Allegations of Failing To Comply With HUD’s Federal Housing Administration Loan Requirements
HUD OIG assisted the U.S. Department of Justice, Washington, DC, and the U.S. Attorney’s Office, District of Colorado, in the civil investigation of MetLife Bank, N.A. MetLife had its principal place of business in Convent Station, NJ. MetLife became an approved direct endorsement lender under HUD’s Federal Housing Administration (FHA) program on April 5, 2007. The direct endorsement program authorizes private-sector mortgage…
March 26, 2015
Memorandum
#2015-CF-1803
Final Civil Action – Borrower Settled Allegations of Not Complying With the Primary Residence Requirement of the Federal Housing Administration Program
HUD OIG conducted a civil investigation of an alleged loan origination fraud scheme involving a cash-out refinance loan that was insured by the Federal Housing Administration (FHA). FHA provides mortgage insurance on loans made by FHA-approved lenders to creditworthy borrowers. Borrowers must occupy the properties as their primary residence for at least 1 year. Borrowers certify to their intent to occupy the property when…
March 26, 2015
Memorandum
#2015-CF-1804
The City of Minot, ND, Did Not Fully Comply With Federal and Local Procurement Requirements
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited the City of Minot, ND’s Community Development Block Grant (CDBG) Disaster Recovery program because the City was awarded more than $67 million in CDBG Disaster Recovery funds in April 2012 and an additional $35 million in May 2013. Before our audit, the City had spent more than $26 million and $1.3 million, respectively. In addition, we…
March 12, 2015
Report
#2015-KC-1002
Breakthrough Living Program Did Not Administer Its Program in Accordance With HUD Rules and Regulations
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, audited Breakthrough Living Program based on an audit referral memorandum received from the Director of HUD’s Southwest Region, Office of Multifamily Housing Programs. The referral cited several concerns, including the property’s unilateral withdrawal of funds from the reserve for replacement account. Our audit objective was to determine whether…
March 03, 2015
Report
#2015-KC-1001
The State of Rhode Island Did Not Always Operate Its Neighborhood Stabilization Program in Compliance With HUD Regulations
We audited the State of Rhode Island’s Neighborhood Stabilization Program (NSP) based on a risk assessment that considered the amount of funding, the U.S. Department of Housing and Urban Development’s (HUD) risk assessment, and HUD findings related to one of the State’s subrecipients. Our overall audit objective was to determine whether the State properly administered the NSP and ensured that costs incurred were in accordance with HUD…
March 02, 2015
Report
#2015-BO-1003
Rhode Island Housing, Providence, RI, Did Not Always Adequately Support HOME Fund Expenditures
We completed a review of the Rhode Island Housing’s HOME Investment Partnerships Program based on an Office of Inspector General risk assessment of New England HOME recipients that considered the amount of funding provided and prior audit and monitoring findings. Our audit objectives were to determine whether Rhode Island Housing officials awarded HOME funds to grantees in a reasonable and supported manner and whether HOME funds were…
February 02, 2015
Report
#2015-BO-1002
New Image Emergency Shelter, Long Beach, CA, Did Not Adequately Support HOPWA Salary and Operating Expenses
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…
January 28, 2015
Report
#2015-LA-1001