We audited the Housing Authority of the City and County of San Francisco’s (Authority) Section 8 housing quality standards inspections of Housing Choice Voucher program (voucher)-funded housing units. Our objective was to determine whether the Authority conducted its housing quality standards inspections in accordance with HUD rules and regulations. We found that the Authority did not conduct its housing quality standards inspections of…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, audited the State of Kansas' (State) Neighborhood Stabilization Program I (NSP I). Our audit objectives were to determine whether the State properly obligated its NSP I funds and to determine whether the State's contracts contained all of the required provisions. We concluded the State improperly obligated more than $12 million of its NSP I funds…

We reviewed the City of Montebello’s (City) HOME Investment Partnerships Program (HOME) at the request of the U.S. Department of Housing and Urban Development’s (HUD) Los Angeles Office of Community Planning and Development (CPD). The request was based on findings contained in a 2008 single audit report and 2009 HUD CPD technical assistance report, which stated that the City did not fully comply with HOME program requirements in the ongoing…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, audited National Bank of Kansas City (National Bank). Our audit objectives were to determine whether National Bank followed Federal Housing Administration (FHA) requirements for (1) borrower eligibility and creditworthiness and property eligibility when underwriting loans and (2) implementing a quality control program. National Bank did not follow HUD…

We audited the Sacramento Housing Redevelopment Agency (Agency) as a result of a hotline complaint, which alleged violations of Neighborhood Stabilization Program (program) funds provided through the Housing and Economic Recovery Act of 2008. Our objective was to determine whether the alleged violations had merit. The complaint alleged several instances where the Agency did not follow program rules and regulations, including but not limited to…

We completed a capacity review of the City of Los Angeles’ Housing Department’s (City) Neighborhood Stabilization Program (Program). We performed the review because Housing and Economic Recovery Act of 2008 (HERA) reviews are part of our annual audit plan and the program was identified as high risk. We previously audited several different aspects of the City’s HOME Investment Partnerships program, all of which disclosed significant monitoring…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited the Kansas City, Kansas Housing Authority (Authority) to determine whether the Authority violated HUD’s waiting list rules when it offered Section 8 vouchers to applicants for Delaware Highlands Assisted Living. We conducted the audit because of concerns raised during a previous audit of the Authority, in which we saw indications that the Authority…

We completed a capacity review of the County of San Bernardino’s (County) Neighborhood Stabilization Program (Program). We performed the audit because Housing and Economic Recovery Act of 2008 reviews are part of the Office of the Inspector General’s annual audit plan and the Program was identified as high risk. In addition, the County was awarded significant Program funds of $22.7 million. Our objective was to determine whether the County…

We completed a capacity review of the City of Fresno’s (City) Neighborhood Stabilization Program (Program). We performed the audit because Housing and Economic Recovery Act of 2008 reviews are part of the Office of the Inspector General’s annual audit plan and the program was identified as high risk. In addition, the City was awarded a $10.9 grant. Our objective was to determine whether the City had sufficient capacity and the necessary…

We completed a capacity review of the County of Riverside’s (County) Neighborhood Stabilization Program (Program). We performed the audit because Housing and Economic Recovery Act of 2008 reviews are part of the Office of the Inspector General’s annual audit plan and the program was identified as high risk. In addition, the County was awarded significant Program funds of $48.6 million. Our objective was to determine whether the County had…

We performed a review of the Lutheran Gardens Corporation (Corporation) trust fund account in response to a HUD request, dated March 30, 2009. HUD believed that as much as $2.72 million was withdrawn from a trust account in violation of a trust agreement (agreement) with HUD, dated April 22, 2005, and questioned certain disbursements. Our objective was to determine whether the Corporation withdrew and expended trust funds in accordance with…

We audited the City of Los Angeles’ Community Development Department (City) as a result of problems noted during a prior audit involving activities administered by the Community Redevelopment Agency of the City of Los Angeles (subrecipient). Our objective was to determine whether Community Development Block Grant (CDBG) funds were administered in accordance with HUD’s requirements for the CDBG program as they relate to a specific subrecipient…

We audited the City of Los Angeles Housing Department (City) as a result of two complaints alleging violations of affordable housing and low-income housing tax credit regulations at the NoHo Commons housing development (development), which was partially funded with HOME funds and administered by the Community Redevelopment Agency of Los Angeles (subrecipient). Our objective was to determine whether the alleged violations had merit and warranted…

We performed a review of the San Diego Square (Square) project in response to a hotline complaint. The complainant stated that San Diego Kind Corporation (Corporation) misappropriated a lease prepayment of $480,060 and HUD failed to enforce program rules and regulations after detecting the misappropriation. Our objective was to determine whether the complaint was valid. We were unable to determine whether the allegations were valid. The…

We audited the Housing Authority of the City of Richmond’s (Authority) procurement activities. Our objective was to determine whether the Authority followed procurement requirements. We found that the Authority could not adequately support that procurement activities were conducted in accordance with applicable requirements. As a result, it could not demonstrate that contracts were awarded to vendors whose proposals were most advantageous to…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited the development activities of the Kansas City, Kansas, Housing Authority (Authority) to determine whether the Authority improperly spent federal public housing funds when developing and operating nonfederal developments. We conducted the audit because of a citizen complaint received by our office. We concluded that the Authority inappropriately…

We completed a capacity review of the Los Angeles County Community Development Commission’s (County) Neighborhood Stabilization Program. We performed the audit because Housing and Economic Recovery Act reviews were part of the Office of the Inspector General’s annual audit plan and the program was identified as high risk. In addition, the County was awarded significant Neighborhood Stabilization Program funds of $16.8 million. Our objective…

We audited the State of California’s Department of Housing and Community Development (State) to determine the basis and method used to allocate its $145 million in Neighborhood Stabilization Program (NSP) grant funds. Our objective was to determine whether the methodology the State used in allocating its NSP grant funds was logical, equitable, and in accordance with U.S. Department of Housing and Urban Development (HUD) requirements. The State…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, audited Milestone Management Services, Inc. (Milestone), of Topeka, Kansas, in response to a request from the HUD's Office of Multifamily Housing in Kansas City, Kansas. HUD was concerned that Milestone had not complied with cash management requirements. Our audit objective was to determine whether Milestone complied with HUD’s cash management…