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…

The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General audited the Housing Authority of the City of Terre Haute’s (Authority) nonprofit development activities. The review of public housing authorities’ development activities is set forth in our annual audit plan. We selected the Authority because it had high-risk indicators of nonprofit development activity. Our objective was to determine whether the…

We audited the U.S. Department of Housing and Urban Development’s (HUD) Office of Public Housing field office in Phoenix, Arizona (Public Housing). The objective of the audit was to determine whether Public Housing’s procedures for monitoring the Nogales Housing Authority (Authority) were effective. The audit was started because Public Housing performed several monitoring reviews at the Authority; however, there were indications that some of…

We performed a corrective action verification of HUD's actions in implementing recommendation 1F from our audit of the Housing Authority of Maricopa County's Mixed Finance Development Activities (Rose Terrace and Maricopa Revitalization), Audit Report 2005-LA-1002, issued March 14, 2005. The purpose of the corrective action verification was to determine whether HUD officials appropriately closed audit recommendation 1F in accordance…

We audited Campaige Place at Jackson (Campaige Place) to determine whether it used its project funds in compliance with the U.S. Department of Housing and Urban Development’s (HUD) regulatory agreement and other federal requirements. Campaige Place did not use its project funds in compliance with HUD’s and other federal requirements. Specifically, we determined that: •Owner advances of $73,750 were repaid when the project had no surplus cash…

The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General audited the Indianapolis Housing Agency's (Agency) Section 8 Housing Choice Voucher program. The audit was part of the activities in our fiscal year 2008 annual audit plan. We selected the Agency's program based upon our prior audits of the Agency's program and recent press coverage regarding conditions at two of the Agency's Section…

We audited the mortgage origination and business practices of the First Magnus Financial Corporation’s (First Magnus) corporate office in Tucson, Arizona. The objective of the audit was to determine whether First Magnus violated U.S. Department of Housing and Urban Development (HUD) requirements by paying builders and real estate companies marketing fees and non-competition fees in exchange for the referral of Federal Housing Administration (…

We audited the mortgage origination and business practices of First Magnus Financial Corporation’s (First Magnus) corporate office in Tucson, Arizona. The objective of the audit was to determine whether First Magnus violated U.S. Department of Housing and Urban Development (HUD) requirements by paying its brokers volume-based incentives for originating and processing Federal Housing Administration (FHA) mortgages. We determined that First…

We audited the City of Phoenix Housing Department’s (Housing Department) Housing Choice Voucher program. We conducted the audit as part of the Office of Inspector General’s (OIG) annual plan. The Housing Department was selected for review because it is the largest housing authority in the state of Arizona and had not previously been audited by OIG. The objective of the audit was to determine whether the Housing Department supported tenant…

We audited the Housing Authority of the City of Eloy (Authority) because the U.S. Department of Housing and Urban Development (HUD) had rated the Authority as troubled for five years. In 2007, the Authority had significant financials problems and terminated its executive director. We determined that the Authority did not have adequate internal controls to safeguard assets and reasonably ensure that HUD funds were used in accordance with…

The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General audited the Housing Authority of the City of Fort Wayne's (Authority) Section 8 Housing Choice Voucher program (program). The audit was part of the activities in our fiscal year 2007 annual audit plan. We selected the Authority based upon our analysis of risk factors relating to the housing agencies in Region V's jurisdiction. Our objective…

The U.S. Department of Housing and Urban Development's (HUD) audited the Indianapolis Housing Agency's (Agency) Section 8 Housing Choice Voucher program (program). The audit was part of the activities in our fiscal year 2007 annual audit plan. We selected the Agency based upon our analysis of risk factors relating to the housing agencies in Region V's jurisdiction. Our objective was to determine whether the Agency administered its…

The the U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General audited the City of Muncie's (City) HOME Investment Partnerships Program (Program). The audit was part of the activities in our fiscal year 2007 annual audit plan. We selected the City based upon our analysis of risk factors relating to Program grantees in Region V's jurisdiction. Our objectives were to determine whether the City…

The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General audited the Housing Authority of the City of Michigan City's (Authority) nonprofit development activities. The review of public housing authorities' development activities is set forth in our annual audit plan. We selected the Authority because it was identified as having high-risk indicators of nonprofit development activity. Our objective was to determine…