We completed a review of the City of Phoenix’s (City) Neighborhood Stabilization Program (NSP) grants NSP1 and NSP2. We performed the review because it supports the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General’s strategic plan to contribute to the oversight objectives of the American Recovery and Reinvestment Act of 2009 and the City received a $60 million grant as one of 56 NSP2 grantees. Our objective…

We audited the Federal Housing Administration (FHA)-insured loan process at MetLife Bank’s (lender) branch in Scottsdale, AZ, to determine whether the lender underwrote FHA-insured loans and implemented a quality control plan in accordance with U.S. Department of Housing and Urban Development (HUD) requirements. We selected the lender because it had an FHA default rate of 7.41 percent for loans underwritten in Arizona between April 1, 2009, and…

We audited DeKalb County’s HOME Investment Partnerships Program because it received more than $8 million in HOME funding since 2008. Our objective was to determine whether the County accurately entered commitments and project completion data into HUD’s Integrated Disbursement and Information System. The County did not require that the signatures of all parties who signed written agreements be dated to support whether the commitments were made…

We audited Housing Our Communities’ (subrecipient) Neighborhood Stabilization Program (NSP1) subgrant from the City of Avondale. The audit was started primarily because the U.S. Department of Housing and Urban Development, Office of Inspector General’s (HUD OIG) audit plan includes objectives to review Housing and Economic Recovery Act grantees and because a previous HUD OIG audit of the City of Mesa found indications that the subrecipient did…

We audited Chicanos Por La Causa, Inc.’s (grantee) Neighborhood Stabilization Program 2 (NSP2) grant to determine whether the grantee administered its NSP2 grant in accordance with HUD’s program requirements. We conducted the audit as part of the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General’s (OIG) fiscal year 2011 annual audit plan and to support HUD OIG’s fiscal year 2011 strategic goal to contribute to…

HUD OIG performed an audit of the Homelessness Prevention and Rapid Re-Housing Program at the Georgia Department of Community Affairs. The audit was part of the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General’s (OIG) national mandate to oversee and audit grant activities funded by the American Recovery and Reinvestment Act of 2009 (Recovery Act). We selected the Georgia Department of Community Affairs…

We reviewed Federal Housing Administration (FHA)-insured loan settlement documents from two branches of DHI Mortgage Company, LTD (DHI Mortgage), in Arizona. During a previous audit of loan origination by the same branches (audit report number 2009-LA-1018), there was information indicating that the Real Estate Settlement Procedures Act (Act) might have been violated; however, we were unable to report on the issue at the time. Our review…

We audited the City of Mesa’s (grantee) Neighborhood Stabilization Program (NSP1) grant to determine whether the grantee administered the grant in accordance with HUD’s program requirements. The audit was started primarily because the Office of Inspector General’s (OIG) audit plan includes objectives to review Housing and Economic Recovery Act grantees and because staff from the U.S. Department of Housing and Urban Development’s (HUD) Office of…

The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General conducted a review of the City of Columbus, GA’s (City) Neighborhood Stabilization Program (NSP1) to determine whether the City had demonstrated the capacity to properly obligate all NSP1 grant funds and at least 25 percent of the grant toward occupants with incomes below 50 percent of the median income in the locality (LH25) set-aside by the September…

HUD OIG performed an audit of the East Point Housing Authority (Authority) Housing Choice Voucher program. We selected the Authority due to the lack of onsite monitoring performed by the Office of Public Housing, Georgia State Office, over the past 10 years and the fact that the number of program tenants had more than doubled over the past few years. The purpose of the audit was to determine (1) whether the Authority established procedures to…

We conducted a review of 20 Federal Housing Administration (FHA) loans underwritten by Pine State Mortgage Corporation (Pine State), an FHA direct endorsement lender. This review was conducted as part of our “Operation Watchdog” initiative to review the underwriting of 15 direct endorsement lenders at the suggestion of the FHA Commissioner. The Commissioner expressed concern regarding the increasing claim rates against the FHA insurance fund for…

The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General conducted a review of the City of Augusta, GA’s (City) Neighborhood Stabilization Program (NSP1) to determine whether the City had demonstrated the capacity to properly obligate all NSP1 grant funds and at least 25 percent of the grant toward occupants with incomes below 50 percent of the median income in the locality (LH25) set-aside by the September 5…

HUD OIG performed an audit of the Housing Authority of DeKalb County’s use of its net restricted assets based on a request from the Atlanta Office of Public Housing. The request indicated that a significant amount of net restricted assets was used to pay for items other than the required housing assistance payments. The purpose of the audit was to determine how the Authority expended its net restricted assets and what controls were in place to…

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…

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…

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…

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…