On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act made available $5 billion in supplemental CDBG funding for grants to prevent, prepare for, and respond to the coronavirus pandemic (CDBG-CV grants).  Because of similarities, we reviewed 132 CDBG-DR program audits and evaluations issued from May 2002 to March 2020 to summarize the common CDBG-DR program weaknesses and risks for CPD to consider to help its CDBG…

While some of HUD’s efforts to improve its hiring and human capital functions and reduce its average time-to-hire have been successful, HUD’s hiring process overall was not efficient.  HUD’s Office of the Chief Human Capital Officer (OCHCO), which is responsible for developing and implementing policies and procedures associated with human capital management, set a goal to reduce the average time-to-hire but did not meet this goal. …

We audited the U.S. Department of Housing and Urban Development’s (HUD) fiscal year 2020 compliance with the Payment Integrity Information Act of 2019 (PIIA) and other Office of Management and Budget guidance.  PIIA was enacted to prevent and reduce improper payments and requires each agency’s inspector general to perform an annual review of the agency’s compliance with PIIA.  Our audit objective was to determine whether HUD complied…

HUD does not have a departmentwide policy for dealing with radon contamination.  Instead, HUD relies on each program office to develop radon policies that align with HUD’s environmental regulations.  The three program offices reviewed do not have consistent radon policies.  Only Multifamily’s radon policy includes radon testing and mitigation requirements.  PIH’s policy strongly encourages but does not require public housing…

In June 2020, we received letters from members of Congress, including the chairpersons of the House Committee on Financial Services and Oversight and Investigation Subcommittee, expressing concern that the U.S. Department of Housing and Urban Development (HUD) imposed a new, nonpublic, and legally erroneous policy that prohibited issuing Federal Housing Administration (FHA)-insured loans to Deferred Action for Childhood Arrivals (DACA)…

The West Calumet Housing Complex (WCHC), located in East Chicago, IN, was a public housing development that opened in 1972 on top of a former lead smelting plant.  HUD and other agencies missed multiple opportunities to identify site contamination at WCHC.  As a result, WCHC residents continued living in unsafe conditions for decades, and inadequate oversight led to the lead poisoning of children in WCHC.  Between 2005 and 2015, a…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, audited HUD’s Office of Multifamily Housing Programs upon receiving a hotline complaint.  The hotline complaint contained allegations that (1) HUD routinely fails to perform Endangered Species Act analysis or consultations; (2) there are many projects that have deficiencies in noise analysis and environmental assessment site factors; (3) the…

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…

The OIG investigation focused on the Cairo, IL, based Alexander County Housing Authority's (ACHA) improper usage of HUD subsidized Asset Management Project (AMP) funds with prosecutorial consideration being given to 18 USC 666 (Theft, Intentional Misapplication of Funds), 18 USC 1001, (False Statements) and 18 USC 371 (Conspiracy). These funds (also referred to as operating funds and low rent housing project funds) and Capital funds are governed…

We audited the Housing Authority of the City of North Chicago’s Housing Choice Voucher Program based on our analysis of risk factors related to the public housing agencies in Region 5’s jurisdiction and the activities included in our 2018 annual audit plan.  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 City of Chicago’s Department of Public Health’s (Department) Lead Hazard Reduction Demonstration Grant Program based on our analysis of the U.S. Department of Housing and Urban Development’s (HUD) Office of Lead Hazard Control and Healthy Homes grantees in Region 5’s jurisdiction.  Our audit objective was to determine whether the Department administered the Program in accordance with HUD’s and its own requirements. The…

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 DuPage County’s Community Development Block Grant Disaster Recovery program.  The audit was part of the activities in our fiscal year 2017 annual audit plan.  We selected the County’s program for review because the County had spent the most program funds authorized under the Disaster Relief Appropriations Act of 2013 in Region 5’s jurisdiction.[1]  Our objective was to determine whether the County administered its…

We audited the Menard County Housing Authority’s Housing Choice Voucher program based on the activities included in our 2017 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 complied with the U.S. Department of Housing and Urban Development’s (HUD) and its own requirements regarding the administration of its…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited Majestic Management, LLC’s management agent activities for the public housing program at the East St. Louis Housing Authority.  Our objective was to determine whether Majestic Management made only eligible and supported payments for payroll, complied with procurement requirements, and properly performed initial tenant certifications and annual…

We audited MB Financial Bank, a Federal Housing Administration (FHA)-approved direct endorsement lender, as part of our efforts to protect the integrity of the U.S. Department of Housing and Urban Development’s (HUD) single-family housing mortgage insurance programs.  We selected MB Financial for review based on an analysis of underwriting and default data maintained by HUD.  Our objective was to determine whether MB Financial…

We audited the U.S. Department of Housing and Urban Development’s (HUD) resident home-ownership program grant for Lakeview East Cooperative (project) based on the results of a risk assessment of multifamily housing programs in Region 5’s jurisdiction (States of Illinois, Indiana, Michigan, Minnesota, Ohio, and Wisconsin).  The audit was part of the activities in our fiscal year 2017 audit plan.  Our objective was to determine whether…

We audited the Stone Terrace Apartments’ Section 8 housing assistance payments program based on a citizen’s complaint alleging mismanagement of its housing assistance payments contract.  The audit was part of the activities in our fiscal year 2017 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…

We audited Alpine First Preston Joint Venture II, LLC, a contracted asset manager in HUD’s real estate-owned Management and Marketing III program, as part of the activities included in our 2017 annual audit plan and because it was the sole contractor to market and sell U.S. Department of Housing and Urban Development (HUD) owned properties located in Illinois. Our audit objective was to determine whether Alpine complied with its contract with…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), in coordination with the U.S. Department of Justice’s Civil Division and the U.S. Attorney’s Office for the Northern District of Illinois’ Eastern Division, conducted a joint review of the former president and founder of MDR Mortgage Corporation. MDR Mortgage provided annual verifications to HUD in 2006, 2007, and 2008, certifying that none of its…