HUD OIG audited the Community Development Block Grant program (program) administered by the City of Deerfield Beach, FL (City). The objective of the audit was to determine whether the City administered its program in accordance with applicable U.S. Department of Housing and Urban Development (HUD requirements. We selected the City for review because it had come under increased scrutiny when various newspaper articles and reviews highlighted…

HUD OIG conducted this audit based on a confidential complaint submitted through the U.S. Department of Housing and Urban Development (HUD) Office of Inspector General (OIG) hotline. The complaint alleged several improprieties involving the County’s NSP and HOME programs. Our objectives were to determine whether the County (1) complied with requirements in the procurement, award, and execution of its NSP administrative contract and (2)…

We completed a review of the Retreat at Santa Rita Springs (community), a Federal Housing Administration (FHA)-insured multifamily project under Section 231 of the National Housing Act. Our audit was in response to a request for audit from Representative Gabrielle Giffords of the 8th District of Arizona. The owner defaulted on the $29.9 million U.S. Department of Housing and Urban Development (HUD)-insured mortgage in November 2009, the month…

HUD OIG performed an audit of Lendamerica Home Loans, Inc., a Federal Housing Administration approved direct endorsement lender located in Coral Gables, Florida. The review was performed based on the lender’s high default rates. The purpose of the audit was to determine whether the lender followed the U.S. Department of Housing and Urban Development’s (HUD) requirements for (1) originating and underwriting loans and (2) implementing its…

HUD OIG performed an audit of Lendamerica Home Loans, Inc., a Federal Housing Administration approved direct endorsement lender located in Coral Gables, Florida. The review was performed based on the lender’s high default rates. The purpose of the audit was to determine whether the lender followed the U.S. Department of Housing and Urban Development’s (HUD) requirements for (1) originating and underwriting loans and (2) implementing its…

We audited the Homelessness Prevention and Rapid Re-Housing Program at the State of Arizona Housing Department (Department) because it was the largest single Homelessness Prevention and Rapid Re-Housing Program grant awarded within Arizona under the American Recovery and Reinvestment Act of 2009 (Recovery Act). Our objective was to determine whether the Department administered the grant in compliance with Recovery Act and other applicable…

HUD OIG audited the Neighborhood Stabilization Program (Program) administered by Broward County, Florida (County). The objective was to determine whether the County had the necessary controls to administer its Program in accordance with the Housing and Economic Recovery Act of 2008. Specifically, we evaluated whether the County had adequate (1) management controls to ensure that activities met Program objectives and (2) financial controls to…

We audited Federal Housing Administration (FHA)-insured loan processes at two DHI Mortgage Company, LTD (DHI Mortgage), branches in Scottsdale, AZ, to determine whether DHI Mortgage originated, approved, and closed FHA-insured single-family loans in accordance with U.S. Department of Housing and Urban Development (HUD) requirements. We recently conducted an audit of DHI Mortgage’s Tucson and Scottsdale branches and identified significant…

We conducted this audit because the County was one of several participating jurisdictions visited during a 2009 internal audit of HOME commitments (audit report number 2009-AT-0001, issued September 28, 2009). During the internal audit, we determined that the County entered incorrect commitments into HUD’s information system. Our objective for this audit was to determine the extent of the incorrect HOME commitments that the County entered into…

In response to an April 3, 2009, hotline request from the Kaibab Band of Paiute Indians, Pipe Spring, AZ (Kaibab), the U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General reviewed HUD’s evaluation of Kaibab’s application for an Indian Community Development Block Grant (Indian Block Grant) under HUD’s 2008 notice of funding availability. The review objective was to evaluate the merits of the complainant’s…

We reviewed the County because it received more than $19 million in NSP funds and in 2008, HUD rated the County’s HOME program as high risk. Our objectives were to determine whether the County had the capacity to effectively and efficiently administer its NSP and whether it accurately reported HOME commitments within HUD’s Integrated Disbursement and Information System (IDIS). Based on the review, the County had the capacity to administer its…

We reviewed the County because it received more than $19 million in NSP funds and in 2008, HUD rated the County’s HOME program as high risk. Our objectives were to determine whether the County had the capacity to effectively and efficiently administer its NSP and whether it accurately reported HOME commitments within HUD’s Integrated Disbursement and Information System (IDIS). Based on the review, the County had the capacity to administer its…

Miami Dade County, Florida (County) was awarded $62.2 million in Neighborhood Stabilization Program (NSP) funds under the Housing and Economic Recovery Act of 2008. HUD's Office of Inspector General (OIG) evaluated the County's capacity to administer its NSP funds. The OIG found that the County did not execute agreements between County departments, existing policies and procedures did not address NSP requirements, adequate supporting…

We conducted a capacity review of the Navajo Housing Authority’s (Authority) operations. The objective of the review was to evaluate the Authority’s capacity to administer its American Recovery and Reinvestment Act (Recovery Act) funds and identify related potential internal control weaknesses that could impact its ability to properly administer the funds. We did not find evidence indicating that the Authority lacked the basic capacity to…

We performed a capital fund administrative capacity review of the Housing Authority of the City of Eloy (Authority) because, despite the Authority’s persistent management problems, HUD awarded the Authority a Public Housing Capital Fund grant of $113,672 under the American Recovery and Reinvestment Act of 2009 (Recovery Act). Our objective was to determine whether the Authority had sufficient capacity to administer its Recovery Act Public…

The Miami-Dade Public Housing Agency (Agency) was awarded a $19.3 million capital fund formula grant under the American Recovery and Reinvestment Act of 2009. HUD's Office of Inspector General (OIG) evaluated the Agency's capacity to administer its Recovery Act funds. The OIG found the Agency’s procurement procedures had weaknesses, staffing levels may be inadequate, and the Agency had not properly prioritized its ARRA funded…

The Miami-Dade Public Housing Agency (Agency) was awarded a $19.3 million capital fund formula grant under the American Recovery and Reinvestment Act of 2009. HUD's Office of Inspector General (OIG) evaluated the Agency's capacity to administer its Recovery Act funds. The OIG found the Agency’s procurement procedures had weaknesses, staffing levels may be inadequate, and the Agency had not properly prioritized its ARRA funded…

We audited Park Lee Apartments to determine whether it complied with the U.S. Department of Housing and Urban Development’s (HUD) regulatory agreement and other federal requirements. We found that Park Lee Apartments did not use its project funds in compliance with HUD and other federal requirements. Specifically, the owner and/or management agents violated the regulatory agreement with HUD by paying $512,562 in questioned costs from the…

We audited FHA-insured loan processes at two DHI Mortgage Company, LTD (DHI Mortgage) branches in Tucson and Scottsdale, Arizona, to determine whether DHI Mortgage originated, approved, and closed FHA-insured single-family loans in accordance with HUD requirements. We chose DHI Mortgage because the Scottsdale, Arizona, branch had a default rate that was double the default rate for FHA-insured loans for the state of Arizona, and then expanded…

HUD OIG audited the Community Development Block Grant (CDBG) program administered by the City of Miami, Florida (City). The objective of the audit was to determine whether the City administered its CDBG program in accordance with applicable U.S. Department of Housing and Urban Development (HUD) requirements. The City did not administer its CDBG program in accordance with applicable HUD requirements. It did not comply with HUD requirements in…