We audited the City of Norfolk’s Community Development Block Grant program based on our annual audit plan and a risk analysis, which indicated that the City had the most open activities in Virginia.  Our objective was to determine whether the City justified its program activities by ensuring that they were properly supported by adequate documentation and met national objectives as required.  The City could not provide adequate…

We audited the Virginia Housing Development Authority (Authority) because it received $44.2 million in Tax Credit Assistance Program (Program) funds under the American Recovery and Reinvestment Act of 2009 (Recovery Act). The Authority received the second largest amount of Program funds awarded in Region III. Our objective was to determine whether the Authority administered its Program in accordance with Recovery Act and applicable U.S.…

We audited the Fairfax, VA, branch office (branch office) of Prospect Mortgage, LLC (Prospect Mortgage), because it had one of the highest default rates for U.S. Department of Housing and Urban Development (HUD)-approved lenders for loans issued in the State of Maryland. Our objective was to determine whether Prospect Mortgage and its branch office complied with HUD regulations, procedures, and instructions in the origination and quality…

We audited the Yorkville Cooperative (Cooperative) based on a request from the U.S. Department of Housing and Urban Development’s (HUD) Richmond Multifamily Program Center and a citizen complaint. The objective of the audit was to determine whether the Cooperative administered its Section 221(d)(3) property and housing assistance contract according to its regulatory agreement and HUD requirements. The Cooperative did not administer its Section…

We audited the Richmond Redevelopment and Housing Authority (Authority) administration of its housing assistance payments for leased housing. This is the last of three audit reports we plan to issue on the Authority's program. The audit objective addressed in this report was to determine whether the Authority properly maintained documentation to support housing assistance payments and accurately calculated them. The Authority did not…

We audited the City of Norfolk's (City) HOME Investment Partnerships (HOME) program based on a request from the Community Planning and Development Division in the U.S. Department of Housing and Urban Development's (HUD) Richmond, Virginia, field office. Our audit objective was to determine whether the City properly administered its HOME program by following HUD requirements related to homebuyer assistance, modernization rehabilitation…

We audited the Richmond Redevelopment and Housing Authority's (Authority) administration of its housing quality standards inspection program for its Section 8 Housing Choice Voucher program as part of our fiscal year 2008 audit plan. Our audit was to determine whether the Authority adequately administered its Section 8 housing quality standards inspection program to ensure that its program units met housing quality standards in accordance…

Attached is the final report on our audit of the Richmond Redevelopment and Housing Authority (Authority), Richmond, Virginia, Audit Report Number 2008-PH-1006, dated April 15, 2008. Our audit objectives were to determine whether the Authority adequately managed its waiting list, met HUD's lease-up thresholds, and operated its Family Self-Sufficiency program according to HUD requirements. The Authority's Housing Choice Voucher program…

NEWPORT NEWS, Va. – A Hampton man was sentenced today to 17 years in prison for wire fraud, aggravated identity theft, and race-based interference with housing and employment.According to court documents, David L. Merryman, 59, owned 39 rental properties in Newport News and 23 more in Hampton.  Many of Merryman’s rental properties were in poor condition and located in low-income neighborhoods. He primarily rented the properties to…

RICHMOND, Va. – U.S. Attorney Jessica D. Aber for the Eastern District of Virginia and U.S. Department of Housing and Urban Development Inspector General Rae Oliver Davis hosted a Safe Housing Summit in Richmond on Sept. 16 focused on combatting sexual misconduct, promoting environmental justice, and protecting the civil rights of residents in HUD-assisted housing.The summit was attended by representatives from a number of organizations,…

NEWPORT NEWS, Va. – A Hampton man pled guilty today to wire fraud, aggravated identity theft, and race-based interference with housing and employment.According to court documents, David L. Merryman, 59, owns 39 rental properties in Newport News and 23 more in Hampton.  Many of Merryman’s rental properties were in poor condition and located in low-income neighborhoods. He primarily rented the properties to underprivileged African American…

WASHINGTON DC— Today, the U.S. Department of Housing and Urban Development (HUD) Office of Inspector General (OIG) issued a management alert urging HUD leadership to address the Department’s longstanding challenges with identifying and preventing improper payments. For 11 consecutive years, HUD has been noncompliant with federal laws requiring agencies and departments to identify, report, and mitigate improper or unknown payments in their…

NEWPORT NEWS, Va. – A federal grand jury returned an indictment yesterday against a Hampton-based landlord for using force and threats of force against African American victims, including a businessman, a city official in Newport News, and four tenants. The indictment further charged the landlord with defrauding tenants and the government to obtain rent relief benefits, housing assistance payments for public housing, and other funds to which he…

The Office of Inspector General (OIG) for the U.S. Department of Housing and Urban Development (HUD) is initiating an inquiry into Ginnie Mae’s monitoring and extinguishment of former issuer, Reverse Mortgage Funding (RMF), from its Home Equity Conversion Mortgage-Backed Securities (HMBS) Program.  The OIG’s inquiry will include interviews, data gathering, and analysis of compliance with laws, regulations, policies, and procedures related…

WASHINGTON DC— Today, the U.S. Department of Housing and Urban Development (HUD) Office of Inspector General (OIG) issued an audit report about HUD’s compliance with the Payment Integrity Information Act of 2019 (PIIA).  Congress enacted the PIIA in March 2020 to safeguard Federal funds by reducing payments made for an incorrect amount under statutory, contractual, administrative, or other legally applicable requirements.   The law…

The Justice Department today announced the launch of the Puerto Rico and U.S. Virgin Islands (USVI) Environmental Crimes Task Force to investigate and prosecute violations of federal law harming the environment, wildlife and human health, and associated fraud, waste and abuse in the region. The creation of the task force comes one year after the Justice Department announced  its Comprehensive Environmental Justice Enforcement Strategy…

WASHINGTON DC— Today, the U.S. Housing and Urban Development Office of Inspector General issued an evaluation report about HUD’s processes for monitoring children with elevated blood lead levels (EBLL) and lead-based paint hazards in public housing.The evaluation examined HUD’s processes for addressing cases of EBLLs in children residing in public housing determined the effectiveness of two trackers that HUD uses to ensure appropriate action is…

      WASHINGTON DC — Inspector General Rae Oliver Davis issues the following statement on the issuance of notification of inquiry to the Department concerning the circumstances resulting in the relocation of residents at Peppertree Apartments: “Promoting safety in HUD housing is a top priority for my office. Everyone deserves to live in a decent, safe, and sanitary home without the fear of being exposed to safety hazards that…