We audited the U.S. Department of Housing and Urban Development’s (HUD) Emergency Solutions Grants Coronavirus Aid, Relief, and Economic Security Act (CARES Act) (ESG-CV) program. Our audit objective was to determine what challenges ESG-CV grant recipients faced in implementing the program and using grant funds. We used a survey questionnaire to gather feedback and insight directly from the 362 recipients of ESG-CV grants. At the time we…

We audited the City of Mesa’s Community Development Block Grant (CDBG) program based on (1) a hotline complaint alleging CDBG noncompliance; (2) a prior U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, audit (2011-LA-1006), which determined that the City needed to improve how it administered its Neighborhood Stabilization Program 1 funds; and (3) our objective to promote fiscal responsibility and financial…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited the Tacoma Housing Authority’s participation in the Rental Assistance Demonstration Program (RAD) because it had the highest number of completed RAD units and the second highest number of total RAD units in HUD’s Region 10.  Our objective was to determine whether the Authority executed the appropriate written agreements for RAD, ensured that…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited the Spokane Housing Authority due to the Authority’s participation in the Rental Assistance Demonstration Program (RAD), which was a priority for the Office of Audit.  Our objective was to determine whether the Authority followed relocation requirements during its RAD conversion of the Parsons Apartments. We found that The Authority did not…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General selected the Housing Authority of Snohomish County for audit based on a referral from the U.S. Department of Housing and Urban Development’s (HUD) Office of Labor Standards Enforcement in Seattle, WA.   Our objective was to determine whether the Authority executed Agreements To Enter Into Housing Assistance Payments Contract (forms HUD-52531-A and…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), referred alleged violations to HUD’s Office of Program Enforcement for action under the Program Fraud Civil Remedies Act based on two audits of DHI Mortgage Company Ltd.  (DHIM) that found it did not follow HUD requirements when it underwrote Federal Housing Administration (FHA)-insured loans with prohibited restrictive addenda to the purchase…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited Homewood Terrace Mutual Homes’ Section 8 housing assistance payments program due to concerns over poor financial reporting and potentially inappropriate involvement by one of its board members.  Our objective was to determine whether Homewood Terrace conducted timely reexaminations, correctly calculated and requested assistance payments, and…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited Snohomish County’s Community Development Block Grant (CDBG) entitlement program because the U.S. Department of Housing and Urban Development (HUD), as part of its 2014 monitoring report, noted findings and concerns related to the County’s use of program income.  In addition, the County’s 2013 risk assessment concluded that procurement was an…

We audited Coconut Grove Apartments due to concerns expressed by the U.S. Department of Housing and Urban Development’s (HUD) Office of Multifamily Housing Programs regarding the management of the project.  The main concern was that the owner may have diverted project funds for nonproject expenses.  Our audit objective was to determine whether Coconut Grove’s owner operated its Sections 223(f) and 241(a)-insured multifamily rental…

We audited NOVA Financial & Investment Corporation based on a referral from the U.S. Department of Housing and Urban Development’s (HUD) Quality Assurance Division detailing a separate lender that originated Federal Housing Administration (FHA)-insured loans that contained ineligible downpayment assistance gifts.  The HUD Office of Inspector General’s (OIG) analysis identified NOVA as a lender with the highest origination volume in the…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited the Redwood Juniper Tacoma Apartments to determine whether Redwood Juniper’s owner took an unauthorized distribution in excess of surplus cash, procured services in accordance with HUD rules and regulations, and maintained an auditable waiting list. We selected the multifamily housing project for audit because it appeared that the project owner took…

HUD OIG conducted a civil investigation of an alleged loan origination fraud scheme involving a cash-out refinance loan that was insured by the Federal Housing Administration (FHA).  FHA provides mortgage insurance on loans made by FHA-approved lenders to creditworthy borrowers.  Borrowers must occupy the properties as their primary residence for at least 1 year.  Borrowers certify to their intent to occupy the property when…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited King County, WA’s Shelter Plus Care program to determine whether King County met the matching requirements for its Shelter Plus Care grants.  We selected King County because it received the most Shelter Plus Care funding in HUD’s Region 10 (Alaska, Idaho, Oregon, and Washington). While it was able to provide the necessary service match support…

We reviewed Southwest Stage Funding, LLC, dba Cascade Financial Services, in Gilbert, AZ.  We selected Southwest Stage because it originated 1,841 loans totaling more than $244 million during calendar years 2012 and 2013.  Further, it had received more loan endorsements on manufactured housing loans than any other lender in Texas since January 1, 2009.  Our objective was to determine whether the lender complied with U.S.…

The U.S. Department of Housing and Urban Development – Office of Inspector General audited Pierce County because it received almost $9 million in total funding in Washington State for its community planning and development grants under the 2011 and 2012 notices of funding availability. The County claimed nearly $242,000 in ineligible matching funds for three HOME projects.  Since these three projects had already received HOME funding and…

We audited the White Mountain Apache Housing Authority’s Indian Housing Block Grant (IHBG).  We conducted the audit primarily due to concerns raised by HUD’s Southwest Office of Native American Programs regarding the Authority’s financial management practices.  The objective of the audit was to determine whether the Authority used its IHBG funds in accordance with HUD requirements. The Authority failed to use its IHBG funds in…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited how the Yakama Nation Housing Authority used its nearly $4.9 million Native American Housing Block Grant provided under the American Recovery and Reinvestment Act of 2009.  Our objectives were to determine whether the Authority properly spent its Recovery Act funds, correctly obtained small purchases, and properly reported Recovery Act…

The U.S. Department of Housing and Urban Development – Office of Inspector General reviewed a complaint against a project that was partially funded by the Office of Community Planning and Development’s HOME Investment Partnerships program.  Our objective was to determine whether the allegations in hotline complaint number HL-2013-0804 were valid.  The complainant alleged that while Clare View Seniors Apartments, LP, was in the process…

We audited The Lending Company, Inc., based on a hotline complaint, previous U.S. Department of Housing and Urban Development (HUD) reviews, and our goal to improve the integrity of the Federal Housing Administration (FHA) single-family insurance programs.  Our objectives were to determine whether The Lending Company complied with HUD requirements when it used gift programs, originated and underwrote FHA loans, and implemented its quality…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited the City of Spokane, WA’s Lead-Based Paint Hazard Control program funded by the American Recovery and Reinvestment Act to determine whether the City complied with procurement, matching, and reporting requirements when executing its grant. This audit was part of the mandate to monitor grant activities funded by the Recovery Act. We selected the City…