We audited the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration’s (FHA) preforeclosure sale claim process based on an internal Office of Inspector General audit suggestion noting that existing regulations may allow excessive preforeclosure claim interest costs.  Our audit objective was to determine the amount of unnecessary preforeclosure claim interest and other costs that resulted from lender…

The U.S. Department of Housing and Urban Development, Office of Inspector General, audited the lender, Berkeley Point Capital, and the underwriting for the Second and Delaware project loan.  We initiated the review of the loan underwriting based on a previous review of the Second and Delaware project, which focused on the construction and development of the project.  The almost $46 million project is Federal Housing Administration (…

We audited the Housing Authority of City of Los Angeles’ legal services due to a hotline complaint alleging that the Authority did not properly procure its legal services and alleging questionable legal expenses that violated U.S. Department of Housing and Urban Development (HUD) requirements.  Our audit objective was to determine whether the Authority procured, contracted, and managed its legal services in compliance with HUD requirements…

We audited the Buffalo Municipal Housing Authority based on our risk analysis of public housing agencies that fall under the jurisdiction of the U.S. Department of Housing and Urban Development’s (HUD) Buffalo, NY, field office.  The objective of our audit was to determine whether the Authority administered its operating funds in accordance with applicable HUD, Federal, and Authority requirements. We found that the Authority did not…

We audited the Red Bank Housing Authority based on the results of our audit of Asbury Park Housing Authority because both public housing agencies had agreements with the Long Branch Housing Authority to provide services.  The objective of this audit was to determine whether the Authority administered its Public Housing Operating and Capital Fund programs in accordance with U.S. Department of Housing and Urban Development (HUD), Federal,…

We audited the Housing Authority of the County of Lake, IL’s Housing Choice Voucher Program based on the activities included in our 2018 annual audit plan and our analysis of risk factors related to the public housing agencies in Region 5’s jurisdiction.  Our audit objective was to determine whether the Authority appropriately managed its program in accordance with the U.S. Department of Housing and Urban Development’s (HUD) and its own…

We audited the Crisfield Housing Authority’s use of public housing program operating and capital funds because we received a hotline complaint alleging misuse of public housing assets and we had never audited the Authority.  The audit objective was to determine whether the Authority administered its public housing program in accordance with applicable U.S. Department of Housing and Urban Development (HUD) requirements and its annual…

We performed a review of the U.S. Department of Housing and Urban Development’s (HUD) Housing Counseling Program, located within the Office of Housing Counseling.  We selected this program based on an audit suggestion that was included in our annual audit plan to help address HUD’s strategic goal to strengthen the housing market to bolster the economy and protect consumers.  Our objective was to determine whether HUD adequately…

We audited the U.S. Department of Housing and Urban Development’s (HUD) tracking of partial claim notes.  The audit was initiated in response to an Office of Inspector General preaudit analysis of HUD’s Single Family Data Warehouse (SFDW) data, which determined that partial claim notes may not have been properly tracked in HUD’s Single Family Mortgage Asset Recovery Technology (SMART) system (see Scope & Methodology section for…

We audited Luther Towers II because it was a high-risk multifamily project that received low inspection and financial assessment scores on our multifamily risk assessment for projects within our region and we had never audited it.  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. The owner of Luther…

The U.S. Department of Housing Urban Development (HUD), Office of Inspector General audited HUD to determine whether it identified and collected outstanding partial claims out of surplus proceeds from nonconveyance foreclosures.  We initiated this audit because we learned while doing unrelated audit work that a trustee attorney held surplus proceeds from two nonconveyance foreclosures and HUD had not claimed these funds to offset earlier…

We audited the Adams County Housing Authority because (1) a news article reported that the executive director received an excessive salary and practiced nepotism, (2) we received a complaint alleging nepotism and potential misuse of Federal funds, and (3) we had never audited the Authority.  Our audit objective was to determine whether the Authority administered its program according to applicable U.S. Department of Housing and Urban…

We audited the Columbus Metropolitan Housing Authority’s Public Housing Operating and Capital Fund programs based on an anonymous complaint to our hotline.  Our audit objective was to determine whether the Authority administered its programs in accordance with the U.S. Department of Housing and Urban Development’s (HUD) requirements. The Authority invested Federal funds in non-HUD-approved investment accounts and did not properly record…

We audited Towne Mortgage Company, a Federal Housing Administration (FHA) nonsupervised lender, as part of the activities in our fiscal year 2018 annual audit plan.  We selected Towne Mortgage based on our analysis of risk factors for single-family servicing lenders in Region 5’s jurisdiction.[1]  Our audit objective was to determine whether Towne Mortgage properly implemented its Loss Mitigation program for FHA-insured loans in…

We audited the U.S. Department of Housing and Urban Development’s (HUD) monitoring of the financial performance of Section 232 nursing homes based on the size of their program, the inherent risks in the program, the length of time since our last audit, and the inclusion of this review in the annual audit plan.  Our audit objective was to determine whether HUD had sufficient financial information and used this information to adequately…

We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of its Family Self-Sufficiency (FSS) program.  We conducted the audit as part of our annual audit plan.  Our objective was to determine whether HUD provided adequate oversight of its program. HUD did not provide adequate oversight of its FSS program.  Specifically, HUD did not ensure that grantees (1) always had action plans that complied with…

The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General audited HUD’s single-family note sales program.  This is the third in a series of audits on the note sales program.  The first audit, 2017-KC-0006, reported that HUD did not conduct rulemaking or develop formal procedures for its single-family note sales program.  The second audit, 2017-KC-0010, reported that HUD generally ensured that…

The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General audited the Meeker Family and Elderly Housing project based on a referral from HUD’s Office of Multifamily Housing Programs in Denver, CO.  The project is owned and managed by the Meeker Housing Authority.  HUD alleged that the owner had failed to file audited financial statements or make mortgage payments to HUD for the past 10 years.  Our…

We audited the multifamily Section 8 Project-Based Rental Assistance (PBRA) program at the Louis Manor Apartments.  We selected Louis Manor in accordance with our goal to review the U.S. Department of Housing and Urban Development’s (HUD) multifamily housing programs and because our analysis of Tenant Rental Assistance Certification System data showed red flag indicators at Louis Manor that appeared to be similar to the conditions we found…

We audited the U.S. Department of Housing and Urban Development’s (HUD) Real Estate Assessment Center’s (REAC) inspections process.  We initiated this audit in accordance with our annual audit plan.  Our objective was to determine whether REAC had adequate processes for and controls over the certification and monitoring of contracted inspectors and its public housing units’ physical inspections processes. We found that REAC could…