The Lower Manhattan Development Corporation, New York, NY, Community Development Block Grant Disaster Recovery Assistance Funds
We completed the 17th audit report in our ongoing review of the Lower Manhattan Development Corporation’s (LMDC) administration of the $2.783 billion in Community Development Block Grant (CDBG) Disaster Recovery Assistance funds awarded to the State of New York in the aftermath of the September 11, 2011, terrorist attacks on the World Trade Center in New York City. During the audit period, April 1, 2011 through March 31, 2012, LMDC…
July 17, 2013
Report
#2013-NY-1008
The County of Santa Barbara, CA, Did Not Comply With HOME Investment Partnerships Program Requirements
We reviewed the County of Santa Barbara’s HOME Investment Partnerships program due to concerns expressed by the U.S. Department of Housing and Urban Development’s (HUD) Los Angeles Office of Community Planning and Development regarding the County’s administration of its HOME program. Our objective was to determine whether the County performed its monitoring responsibilities and ensured that incurred HOME program expenditures were eligible…
July 08, 2013
Report
#2013-LA-1007
The City of Santa Ana, CA, Did Not Administer Neighborhood Stabilization Program 2 Funds in Accordance With HUD Rules and Requirements
We audited the City of Santa Ana’s Neighborhood Stabilization Program 2 (NSP2). We initiated the audit as part of the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General’s (OIG) fiscal year 2012-2013 annual audit plan. Our objective was to determine whether the City administered its program funds in accordance with applicable HUD rules and requirements. Specifically, our focus was to determine…
June 16, 2013
Report
#2013-LA-1006
All Western Mortgage, Las Vegas, NV, Did Not Fully Comply With FHA Program Requirements Concerning Outside Employment and Timeliness of Quality Control Reviews
We audited the Federal Housing Administration (FHA)-insured loan process at All Western Mortgage’s Las Vegas, NV, home office as part of our efforts to improve the integrity of the single-family insurance programs. We selected All Western Mortgage because it is one of the top 10 originators in Nevada and the U.S. Department of Housing and Urban Development’s (HUD) Quality Assurance Division had not performed a review since 2005. The…
May 21, 2013
Report
#2013-LA-1005
The Office of Housing Had Not Fully Developed Formal Risk Based Procedures for Postendorsement Underwriting Reviews of Multifamily and Healthcare Loans
We audited certain portions of the U.S. Department of Housing and Urban Development’s (HUD) multifamily housing and healthcare insured mortgage programs as part of our fiscal year 2012 annual audit plan. The objective of the review was to determine the adequacy of the Office of Housing’s procedures and controls for selecting, conducting, and following up on postendorsement underwriting reviews of insured multifamily and healthcare loans…
May 12, 2013
Report
#2013-AT-0001
Servicing of Multifamily HUD-Held Mortgages
We audited the U.S. Department of Housing and Urban Development’s (HUD) servicing of multifamily projects with HUD-held mortgages because it was part of the Office of Inspector General’s (OIG) annual audit plan. We reviewed 33 multifamily projects with HUD-held mortgages that totaled $307.9 million. Our objective was to determine whether HUD (1) obtained, documented, and reviewed the monthly accounting reports and (2) collected monthly net…
May 02, 2013
Report
#2013-LA-0001
The City of Sarasota, FL, Did Not Always Properly Administer Its NSP2
We audited the City of Sarasota because it was awarded $23 million in Neighborhood Stabilization Program 2 (NSP2) funds and it was in accordance with our audit plan to review funds provided under the American Recovery and Reinvestment Act of 2009. Our objective was to determine whether the City administered its NSP2 in accordance with applicable Federal requirements. Specifically, we wanted to determine whether (1) approved activities met a…
April 24, 2013
Report
#2013-AT-1004
Volunteers of America’s Whispering Pines Senior Village, Estacada, OR- HUD and Recovery Act Rules and Regulations
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited Volunteers of America’s (VOA) Whispering Pines Senior Village’s Green Retrofit program funded by the American Recovery and Reinvestment Act. Our objective was to determine whether VOA used its Whispering Pines Green Retrofit Recovery Act funds in accordance with U.S. Department of Housing and Urban Development (HUD) and Recovery Act rules and…
April 24, 2013
Report
#2013-SE-1002
Madison Park North Apartments Generally Ensured That Procurement and Reserve for Replacement Requirements Were Met
We audited the procurement process of Madison Park North Apartments, a Section 236 property, at the request of the Director of the U.S. Department of Housing and Urban Development’s (HUD) Baltimore Office of Multifamily Housing Programs. We also reviewed Madison’s Park’s use of its reserve for replacement account. Madison Park generally ensured that procurement and reserve for replacement account requirements were met. However, it did not…
April 18, 2013
Report
#2013-PH-1003
Pulte Mortgage LLC, Englewood, CO, Allowed the Recording of Prohibited Restrictive Covenants
We conducted a limited review of Federal Housing Administration (FHA) loans underwritten by Pulte Mortgage LLC. We selected the lender based on the results of an auditability survey, which determined that Pulte Mortgage allowed prohibited restrictive covenants to be filed against Federal Housing Administration (FHA)-insured properties. The objective of our review was to determine the extent to which Pulte Mortgage failed to prevent the…
April 17, 2013
Memorandum
#2013-LA-1802
CTX Mortgage Company LLC, Dallas TX, Allowed the Recording of Prohibited Restrictive Covenants
We conducted a limited review of Federal Housing Administration (FHA) loans underwritten by CTX Mortgage Company LLC. We selected the lender based on the results of an auditability survey, which determined that CTX Mortgage allowed prohibited restrictive covenants to be filed against Federal Housing Administration (FHA)-insured properties. The objective of our review was to determine the extent to which CTX Mortgage failed to prevent the…
April 17, 2013
Memorandum
#2013-LA-1803
Follow-up of the Inspections and Evaluations Division on Its Inspection of the State of Louisiana’s Road Home Elevation Incentive Program Homeowner Compliance (IED-09-002, March 2010)
We completed a follow-up review regarding our recommendations made to the U.S. Department of Housing Urban and Development’s (HUD) Office of Community Planning and Development (CPD) pertaining to our inspection of the State of Louisiana’s Road Home Elevation Incentive program, IED-09-002, issued in March 2010. The objective of the review was to determine whether the State of Louisiana had implemented the four recommendations in our March 2010…
March 28, 2013
Memorandum
#2013-IE-0803
Final Civil Action: Heartland Health Care Center of Bethany Owners Settled Alleged Violations of Equity Skimming
The civil division of the Western District of Oklahoma U.S. Attorney’s Office settled alleged violations of equity skimming against the owners of Heartland Health Care Center of Bethany. The equity skimming allegations stemmed from our December 2004 audit report outlining the misuse of funds. As a result of the combined efforts of the U.S. Attorney’s office; the U.S. Department of Housing and Urban Development (HUD), Office of Inspector…
March 27, 2013
Memorandum
#2013-FW-1801
Generally, HUD’s Hurricane Disaster Recovery Program Assisted the Gulf Coast States’ Recovery; However, Some Program Improvements Are Needed
We audited the U.S. Department of Housing and Urban Development’s (HUD) State Community Development Block Grant (CDBG) Hurricane Disaster Recovery program for hurricanes that hit the Gulf Coast States from August 2005 through September 2008. Our audit objective was to assess the program overall. Specifically, we wanted to (1) determine what had been accomplished using the funding and the funds remaining to be spent; (2) compare actual versus…
March 27, 2013
Report
#2013-FW-0001
Eustis Mortgage Did Not Always Operate Its FHA Program In Accordance With HUD Requirements
We audited Eustis Mortgage Corporation, a Federal Housing Administration (FHA) direct endorsement lender located in New Orleans, LA. We selected Eustis Mortgage as a result of our regional risk analysis and the U.S. Department of Housing and Urban Development’s (HUD), Office of Inspector General’s (OIG) annual audit plan goal to review single-family programs and lenders. Our objective was to determine whether Eustis Mortgage (1) complied with…
March 20, 2013
Report
#2013-FW-1002
Bay Vista Methodist Heights, San Diego, CA, Violated Its Agreement With HUD When Administering Its Trust Funds
We audited Bay Vista Methodist Heights, San Diego, CA, to determine the full extent of the misuse of its trust funds. We selected Bay Vista for review based on a referral from the Office of Multifamily Housing, stating that Bay Vista violated its trust fund agreement with the U.S. Department of Housing and Urban Development (HUD) because the former chief financial officer transferred more than $3 million in restricted funds into Bay Vista’s…
March 13, 2013
Report
#2013-LA-1003
New Day Financial, LLC, Fulton, MD, Ensured Loans Met FHA Requirements
We reviewed 32 Federal Housing Administration (FHA) loans that New Day Financial, LLC, underwrote as a U.S. Department of Housing and Urban Development (HUD) FHA direct endorsement lender. We conducted the review as a result of a risk model assessment that identified mortgage lenders that were at high risk to cause losses to the FHA insurance fund. New Day was one of the lenders identified that made insurance claims within the first 2 years of…
March 06, 2013
Memorandum
#2013-PH-1802
Housing Opportunities for Persons with AIDS
We audited the City of Paterson, NJ’s Housing Opportunities for Persons With AIDS (HOPWA) program in support of the Office of Inspector General’s (OIG) goal to contribute to improving HUD’s execution of its fiscal responsibilities. We selected the City after a risk analysis of HOPWA grantees administered by the HUD Newark, NJ, field office that considered funding, the U.S. Department of Housing and Urban Development’s (HUD) 2011 risk…
February 23, 2013
Report
#2013-NY-1004
Ofori & Associates, PC, Hartford, CT, Did Not Always Comply With Its REO Contract and Marketing Plan Requirements
We audited Ofori & Associates, PC, regarding its U.S. Department of Housing and Urban Development (HUD) real estate-owned (REO) Management and Marketing (M&M) III program. This review was part of the Office of Inspector General’s efforts to improve the integrity of the single-family insurance program. Our audit objective was to determine whether Ofori complied with case processing requirements and timeframes to obtain the highest net…
February 17, 2013
Report
#2013-BO-1001
The City of Albany, NY, Did Not Always Administer Its CDBG Recovery Act Program Effectively and Efficiently
We audited the City of Albany, NY’s administration of its supplemental Community Development Block Grant program funded under the American Recovery and Reinvestment Act of 2009 (CDBG-R). The objectives were to determine whether the City administered its CDBG-R program effectively, efficiently, and economically in accordance with applicable rules and regulations, including the Recovery Act, and other U.S. Department of Housing and Urban…
February 04, 2013
Report
#2013-NY-1001