We audited the Manchester Housing Authority (Authority) in Manchester, CT, because it obligated the majority of its $520,654 Public Housing Capital Fund Stimulus (Formula) Recovery Act Funded grant awarded under the American Recovery and Reinvestment Act of 2009 (Recovery Act) just before the required obligation deadline. Our objectives were to determine whether the Authority (1) obligated its grant funds in a timely manner for eligible…

The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General (OIG) audited Michaelson, Connor, and Boul, Incorporated (MCB), a management and marketing contractor for HUD real estate-owned properties in Michigan. We selected MCB based on the results of our audit of Custom Closing, a HUD-designated closing agent for the State of Michigan (see OIG audit report #2009-CH-1021, issued September 2009). Our objective was…

We conducted a review of Federal Housing Administration (FHA) loans underwritten by Webster Bank (Webster), 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 failed loans. The…

The U.S. Department of Housing and Urban Development's Office of Inspector General (OIG) reviewed 15 Federal Housing Administration (FHA) loans that D & R Mortgage Corporation (D & R) underwrote as an FHA direct endorsement lender. Our review objective was to determine whether D & R underwrote the 15 loans in accordance with FHA requirements. This review is part of Operation Watchdog, an OIG initiative to review the underwriting…

The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General (OIG) reviewed 20 Federal Housing Administration (FHA) loans that Mac-Clair Mortgage Corporation (Mac-Clair) underwrote as an FHA direct endorsement lender. Our review objective was to determine whether Mac-Clair underwrote the 20 loans in accordance with FHA requirements. This review is part of “Operation Watchdog”, an OIG initiative to review the…

The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General (OIG) reviewed 20 Federal Housing Administration (FHA) loans that Birmingham Bancorp Mortgage Corporation (Birmingham) underwrote as an FHA direct endorsement lender. Our review objective was to determine whether Birmingham underwrote the 20 loans in accordance with FHA requirements. This review is part of “Operation Watchdog,” an OIG initiative to…

We audited the Hartford Housing Authority (Authority) because it was awarded a $5 million Public Housing Capital Fund grant under the American Recovery and Reinvestment Act of 2009 (Recovery Act) and obligated the majority of the grant just before the required obligation deadline. Our objectives were to determine whether the Authority (1) had adequate management controls over its obligation process, (2) maintained support for obligations, and (…

The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General audited the Michigan State Housing Development Authority’s (Authority) Section 8 Project-Based Voucher program (program). The audit was part of the activities in our fiscal year 2010 annual audit plan. We selected the Authority’s program based upon our analysis of the housing authorities’ programs in Region V’s jurisdiction and as part of our internal audit…

In accordance with our goal to review funds provided under the American Recovery and Reinvestment Act of 2009 (Recovery Act), the U.S. Department of Housing and Urban Development's Office of Inspector General conducted a capacity review of the Benton Harbor Housing Commission’s (Commission) operations. We selected the Commission based upon the results of our audit of the Commission’s Public Housing Capital Fund (Capital Fund) program (see…

The U.S. Department of Housing and Urban Development's Office of Inspector General reviewed the City of Saginaw’s (City) Community Development Block Grant (Block Grant) program under the American Recovery and Reinvestment Act of 2009 (Act). The review was part of the activities in our fiscal year 2010 annual audit plan. We selected the City based upon the results of our prior audit of the City’s Block Grant-funded demolition activities. Our…

In accordance with our goal to review and ensure the proper administration of Neighborhood Stabilization Program (NSP) funds provided under the Housing and Economic Recovery Act of 2008 (HERA) and the American Recovery and Reinvestment Act of 2009 (Recovery Act), we conducted a capacity review of the City of Waterbury’s (subgrantee), Waterbury Development Corporation’s, operations (subrecipient), who has responsibility for administering the City…

In accordance with our goal to review and ensure the proper administration of Neighborhood Stabilization Program (NSP) funds provided under the Housing and Economic Recovery Act of 2008 (HERA), we conducted a capacity review of the City of Meriden’s (City) operations. The City has responsibility for administering the State’s NSP. Our objective was to determine whether the City had the necessary capacity to effectively administer the State’s NSP…

The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General reviewed Wayne County’s (County) Neighborhood Stabilization Program (Program). The review was part of the activities in our fiscal year 2009 annual audit plan. We selected the County based upon a request from HUD’s Detroit Office of Community Planning and Development. Our objective was to determine whether the County had the capacity to effectively and…

The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General audited the Grand Rapids Housing Commission’s (Commission) Section 8 Project-Based Voucher program (program). The audit was part of the activities in our fiscal year 2009 annual audit plan. We selected the Commission’s program based upon our internal audit survey of HUD’s oversight of the program and our analysis of risk factors relating to the housing…

The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General audited the City of Saginaw’s (City) Community Development Block Grant (Block Grant) program-funded demolition activities. The audit was part of the activities in our fiscal year 2009 annual audit plan. We selected the City based upon a request from HUD’s Detroit Office of Community Planning and Development. Our audit objective was to determine whether the…

We audited the State of Connecticut Department of Social Services’ (agency) administration of its housing quality standards program for its Section 8 Housing Choice Voucher program (Voucher program) as part of our fiscal year 2009 audit plan. The agency was selected based upon our analysis of risk factors relating to rental housing authorities in Region 1. The audit objectives were to determine whether (1) Section 8 housing units met HUD’s…

The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General audited the Michigan State Housing Development Authority’s (Authority) Section 8 Project-Based Voucher program (program). The audit was part of the activities in our fiscal year 2009 annual audit plan. We selected the Authority’s program based upon our internal audit survey of HUD’s oversight of the program and our analysis of risk factors relating to the…

The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General audited the City of Flint’s (City) HOME Investment Partnerships Program (Program). The audit was part of the activities in our fiscal year 2009 annual audit plan. We selected the City based upon our analysis of risk factors relating to Program grantees in Region V’s jurisdiction and a citizen complaint to our office. Our audit objectives were to determine…

The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General performed an audit of Custom Closing Services, Incorporated (Custom), a contractor closing sales of HUD real estate-owned properties in the state of Michigan. The audit was conducted based on a complaint to our hotline alleging that Custom caused significant delays in the closing of HUD homes in Michigan. Our audit objective was to determine whether…

We initiated this audit of the City of New London, Connecticut, Housing Authority (the Authority) as part of OIG’s initiative to evaluate public housing authority’s capability to administer the capital funds provided under the American Recovery and Reinvestment Act of 2009 (The Recovery Act). The Authority has had significant management deficiencies for more than ten years and HUD identified the Authority as “overall troubled” in May of 2004.…