HUD Inaccurately Allotted Funding for Tenant Protection Assistance and Improperly Approved a Proposed RAD Conversion
We reviewed the U.S. Department of Housing and Urban Development’s (HUD) funding allotment for tenant protection assistance at the Vineville Christian Towers (project) related to a housing conversion action and its approval of the project’s Rental Assistance Demonstration Program (RAD) conversion. The review was initiated as a result of internal issues identified during an external audit of the project’s RAD conversion. The objective was…
February 18, 2020
Memorandum
#2020-AT-0802
HUD Had Not Established Deadlines for Reporting FHA-HAMP Nonincentivized Loan Modifications and Filing Nonincentivized Partial Claims
We audited the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration, Home Affordable Modification Program’s (FHA-HAMP) policies for reporting nonincentivized loan modifications and filing partial claims. The audit was a result of a prior Office of Inspector General (OIG) external review in which we identified delays in reporting FHA-HAMP nonincentivized loan modifications and filing partial claims.…
February 04, 2020
Memorandum
#2020-AT-0801
Independent Attestation Review: U.S. Department of Housing and Urban Development, Office of Special Needs, Continuum of Care Homeless Assistance Grants Program, Regarding Drug Control Accounting for Fiscal Year 2019
We conducted an attestation review of the U.S. Department of Housing and Urban Development (HUD), Office of Special Needs, Continuum of Care Homeless Assistance Grants Program, regarding drug control accounting and associated management assertions for fiscal year 2019. As required by Federal statute 21 U.S.C. 1704(d)(1), we reviewed HUD’s drug control accounting, including its written assertions. Our responsibility is to express a…
January 31, 2020
Memorandum
#2020-NY-0801
Community Action North Bay, Fairfield, CA, Did Not Administer Its Continuum of Care Program in Accordance With HUD Requirements
We audited Community Action North Bay’s Continuum of Care Program based on hotline complaints (HC-2016-2275 and HT-2019-1142) and concerns expressed by the San Francisco Office of Community Planning and Development that included matching noncompliance issues. The complaints alleged improper accounting, timekeeping irregularities, unreported program income, and conflicts of interest. Our objective was to determine whether the…
January 31, 2020
Report
#2020-LA-1001
Del Norte Neighborhood Development Corporation
We audited Del Norte Neighborhood Development Corporation based on information we received indicating that Del Norte may have violated the U.S. Department of Housing and Urban Development’s (HUD) HOME Investment Partnerships program rules during the demolition of one of its low- to moderate-income rental developments. Our objective was to determine whether Del Norte properly transferred, stopped, modified, or extended the availability of…
November 26, 2019
Report
#2020-DE-1001
Fiscal Years 2019 and 2018 Financial Statements Audit
This report presents the results of our audit of FHA’s principal financial statements and notes for the fiscal years ending September 30, 2019 and 2018, including our report on FHA’s internal control and test of compliance with selected provisions of laws, regulations, contracts, and grant agreements.
In our opinion, FHA’s fiscal years 2019 and 2018 financial statements were presented fairly, in all material respects, in accordance with the U.S…
November 14, 2019
Report
#2020-FO-0001
Final Civil Action: Quicken Loans, Inc., Settled Allegations of Failing To Comply With HUD’s Federal Housing Administration Loan Requirements
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted the U.S. Department of Justice (DOJ), Washington, DC, in the civil investigation of Quicken Loans, Inc. The investigation was of Quicken’s origination, underwriting, endorsement, and related certifications of Federal Housing Administration (FHA)-insured mortgage loans between September 1, 2007, and December 31, 2011. Quicken has…
September 30, 2019
Memorandum
#2019-CF-1805
Final Civil Action: Pacific Horizon Bancorp, Inc., and Two Loan Officers Settled Allegations of Failing To Comply With HUD’s Federal Housing Administration Loan Requirements
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted HUD’s Office of Program Enforcement in a civil investigation of Pacific Horizon Bancorp, Inc., and two former loan officers at Pacific Horizon. Pacific Horizon has its principal place of business in La Crescenta, CA.
Based on OIG’s civil investigation, on April 2, 2019, HUD notified Pacific Horizon and the two loan officers that it…
September 30, 2019
Memorandum
#2019-CF-1803
Final Civil Action: PrimeLending, a PlainsCapital Company, Settled Allegations of Failing To Comply With HUD’s Federal Housing Administration Loan Requirements
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted the U.S. Department of Justice (DOJ), Washington, DC, and the U.S. Attorney’s Offices for the District of Kansas and the Northern District of Texas in the civil investigation of PrimeLending, a PlainsCapital company. The investigation was of PrimeLending’s origination, underwriting, and quality control of Federal Housing Administration (…
September 30, 2019
Memorandum
#2019-CF-1804
The Texas General Land Office, Jasper, TX, Did Not Ensure That Its Subrecipient Administered Its Disaster Grant in a Prudent and Cost-Effective Manner
We audited the Texas General Land Office’s Community Development Block Grant Disaster Recovery (CDBG-DR) grant that it used to rehabilitate or reconstruct 125 homes affected by Hurricane Ike in 2008. Texas General Land Office contracted with the Deep East Texas Council of Governments, in Jasper, TX, to operate its program. We reviewed Texas General Land Office and its subrecipient as part of our annual audit plan to review CDBG-DR…
September 30, 2019
Report
#2019-FW-1007
FHA Insured at Least $13 Billion in Loans to Ineligible Borrowers With Delinquent Federal Tax Debt
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited Federal Housing Administration (FHA)-insured loans from fiscal year 2018. Our audit objective was to determine whether FHA provided insurance on loans that were made to ineligible, delinquent Federal tax debtors.
We found that FHA insured at least 56,376 loans worth $13 billion, which were not eligible for insurance because they were made to…
September 30, 2019
Report
#2019-KC-0003
Summit Construction and Environmental Services, LLC, Richmond, VA Generally Complied With Requirements for Lead-Based Paint Evaluations
We audited Summit Construction and Environmental Services, LLC, because we received an anonymous complaint alleging that Summit Construction (1) did not perform lead-based paint evaluations in a timely manner, (2) did not produce adequate lead-based paint inspection reports in accordance with applicable requirements, and (3) showed favoritism toward certain contractors performing lead-paint inspections. Our objective was to determine…
September 25, 2019
Report
#2019-PH-1005
Tuscan Homes I and II in Hartford, CT, Was Not Always Managed in Accordance With Its Regulatory Agreement and HUD Requirements
We audited Tuscan Homes I and II, a multifamily project located in Hartford, CT, because our risk assessment ranked the project as the highest risk multifamily project in New England. Our audit objective was to determine whether the owner managed the project in accordance with its regulatory agreement and U.S. Department of Housing and Urban Development (HUD) requirements; specifically, whether (1) exigent health and safety deficiencies…
September 09, 2019
Report
#2019-BO-1004
The Management Agent for Lake View Towers Apartments, Chicago, IL, Did Not Always Comply With HUD’s Section 8 HAP Program Requirements
We audited the Lake View Towers Apartments’ Section 8 housing assistance payments program based on our analysis of risk factors related to multifamily projects in Region 5’s jurisdiction and the activities included in our fiscal year 2019 annual audit plan. Our audit objective was to determine whether the management agent administered the project’s program in accordance with the owner’s contract with the U.S. Department of Housing and…
September 03, 2019
Report
#2019-CH-1003
The Lower Manhattan Development Corporation, New York, NY, Generally Administered Its Disaster Recovery-Funded Program in Accordance With Applicable Requirements
We performed the 23rd review of the Lower Manhattan Development Corporation’s (LMDC) administration of the $2.783 billion in Community Development Block Grant (CDBG) Disaster Recovery funds awarded to the State of New York in the aftermath of the September 11, 2001, terrorist attacks on the World Trade Center (WTC) in New York City. This review was performed in response to a congressional mandate that we continuously audit the…
August 14, 2019
Report
#2010-NY-1008
The Municipality of Yauco, PR, Did Not Always Administer Its CDBG Program in Accordance With HUD Requirements
We audited the Municipality of Yauco’s Community Development Block Grant (CDBG) program as part of our strategic plan. We selected this auditee because the U.S. Department of Housing and Urban Development (HUD) classified the Municipality as a high-risk grantee in its 2017 risk assessment review. Our objective was to determine whether the Municipality complied with HUD regulations, procedures, and instructions related to the…
August 09, 2019
Report
#2019-AT-1005
The Commonwealth of Massachusetts Did Not Always Ensure That Its Grantees Complied With Applicable State and Federal Laws and Requirements
We audited the Commonwealth of Massachusetts’ (State) Small Cities Community Development Block Grant (CDBG) program because the State was the largest recipient of CDBG funds in New England. HUD awarded the State more than $88 million in CDBG funding for program years 2015, 2016, and 2017. In addition, we had not audited any of the State’s community planning and development programs in the last 10 years. Our audit objective was…
August 05, 2019
Report
#2019-BO-1003
PK Management, LLC, Richmond Heights, OH, Did Not Always Maintain Documentation Required to Support Housing Assistance Payments
We audited PK Management, LLC, based on (1) media coverage of problems associated with Essex Village, an apartment complex in Virginia that it managed, and (2) issues identified in our prior audit of PK Management in Birmingham, AL. Our audit objective was to determine whether PK Management assisted eligible tenants and maintained documentation to support the housing assistance payments it received for residents of the properties it…
August 02, 2019
Report
#2019-PH-1003
HUD Completed the Agreed-Upon Corrective Actions for One of the Two Recommendations Reviewed From Prior OIG Audit Report 2015-LA-0001 on FHA-HAMP Partial Claims
We completed a corrective action verification (CAV) of recommendations 1A and 1C from prior OIG audit report 2015-LA-0001 (issued April 20, 2015). The CAV was initiated based on preliminary analysis, which identified potential ineligible partial claims. The prior audit determined that the Federal Housing Administration’s (FHA) claim payment system failed to identify two types of ineligible partial claims. As part of its…
July 15, 2019
Report
#2019-LA-0801
Northlake Homeless Coalition, Mandeville, LA, Did Not Always Follow Continuum of Care Program Requirements
We reviewed the Northlake Homeless Coalition’s Continuum of Care Program (CoC) based on a hotline complaint alleging impropriety in Northlake’s selection of grant award recipients and as part of our annual audit plan. The objective of our review was to determine whether Northlake administered its CoC in accordance with the U.S. Department of Housing and Urban Development’s (HUD) and its own program requirements.
The hotline complaint did…
July 11, 2019
Report
#2019-FW-1005