We initiated this audit as part of our annual audit plan to determine whether the State of Connecticut Department of Social Services (agency) properly administered its Housing Choice Voucher program (Voucher program) in compliance with its annual contributions contracts and U.S. Department of Housing and Urban Development (HUD) regulations. Our objectives focused on whether tenant eligibility, rent determinations, and annual reexaminations were…

We audited the Community Development Block Grant (CDBG) program administered by the City of Durham, North Carolina (City). The objective of the audit was to determine whether the City administered its program in accordance with U.S. Department of Housing and Urban Development (HUD) requirements. We selected the City for review based on HUD's risk assessment and previous monitoring reviews. The City did not administer its CDBG program in…

We audited the City of Hartford, Connecticut's (City) administration of its Housing Choice Voucher program (Voucher program) as part of our annual audit plan. Our overall audit objective was to determine whether the City properly administered its Voucher program in compliance with its annual contributions contracts and HUD regulations. The City generally administered its Voucher program in compliance with its annual contributions contracts…

We audited the City of Durham (City), North Carolina's HOME Investment Partnerships (HOME) program. Our audit objective was to determine whether the City complied with applicable federal procurement requirements with respect to its homeowner rehabilitation activity. This is the second of two audits of the City's program. The City did not advertise for homeowner rehabilitation contractors as required. Also, it did not take necessary…

We initiated this audit as part of the audit plan to determine whether the State of Connecticut Department of Social Services (agency) properly administered its Housing Choice Voucher program (Voucher program) in compliance with its annual contributions contracts and U.S. Department of Housing and Urban Development (HUD) regulations. Our objectives were to determine whether the agency (1) adequately (95 percent or more) leased up its Voucher…

We audited the City of Durham (City), North Carolina 's HOME Investment Partnerships (HOME) program as part of our annual audit plan. Our audit objectives were to determine whether the City complied with U.S. Department of Housing and Urban Development (HUD) requirements for monitoring HOME subrecipients and recording and using HOME program income. The City did not always perform required monitoring reviews or provide adequate evidence that…

We audited the Milford, Connecticut, branch office of Countrywide Bank, FSB (Countrywide), which is a supervised national bank approved by the U.S. Department of Housing and Urban Development (HUD) to originate, underwrite, and service Federal Housing Administration (FHA) single-family insured loans. We selected the Milford, Connecticut, branch office largely based on a lender risk analysis, which showed that the loans it originated had a higher…

We audited Vesta Windham Heights, LLC (Windham Heights), after completing an audit of the owners' related project, Vesta Moosup, LLC (Moosup Gardens). The Moosup Gardens audit (OIG Audit Report Number 2007-BO-1006) disclosed cost exceptions totaling more than $700,000 related to unauthorized distributions and repayments of owner advances while in a non-surplus-cash position and unreasonable payments to identity-of-interest (related)…

We audited Vesta Mohegan, LLC (Mohegan Commons), after completing an audit of the owners' related project, Vesta Moosup, LLC (Moosup Gardens). The Moosup Gardens audit (OIG Audit Report Number 2007-BO-1006) disclosed cost exceptions totaling more than $700,000 related to unauthorized distributions and repayments of owner advances while in a non-surplus-cash position and unreasonable payments to identity-of-interest (related) companies. Our…

We audited the records for Moosup Gardens Apartments (project), a U.S. Department of Housing and Urban Development (HUD)-insured multifamily project in response to a request from HUD. Our audit objective was to determine whether the project's costs were accurately reported to HUD and in accordance with the regulatory agreement and HUD's requirements. We identified questioned costs and opportunities for funds to be put to better use…

RALEIGH, N.C. – Two members of a New Bern family were sentenced for their role in a scheme to defraud a program designed to help struggling North Carolina residents stay in their homes during the COVID-19 pandemic. Takeeia Hawkins, age 43, and her daughter, Shanasia Hawkins, age 22, both pled guilty to conspiracy to commit mail fraud earlier this year. Takeeia Hawkins was sentenced to 36 months in prison for her role in the scheme, while…

Focused on the Use of the Fair Housing Act to Prevent and Address Complaints of Sexual Harassment in HUD-Assisted HousingRALEIGH, N.C. – United States Attorneys Michael Easley for the Eastern District of North Carolina, Sandra Hairston for the Middle District of North Carolina, and Dena King for the Western District of North Carolina joined the Civil Rights Division and the Department of Housing and Urban Development’s Office of Inspector…

GREENSBORO – A Durham, North Carolina woman was sentenced today to 30 months in prison, after pleading guilty to conspiring to commit wire fraud that victimized the Chatham County Housing Authority, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina (MDNC).JOANN JOHNSON DAVIS, age 65, was sentenced to a 30-month term of imprisonment and ordered to pay restitution in the amount of $194,136 by the…

RALEIGH, N.C. – Two members of a New Bern family pled guilty for their role in a scheme to defraud a program designed to help struggling North Carolina residents stay in their homes during the COVID-19 pandemic. Takeeia Hawkins, age 43, and her daughter, Shanasia Hawkins, age 22, both pled guilty to conspiracy to commit mail fraud and face up to 30 years at sentencing later this year. Takeeia Hawkins’ son, Jmari Hawkins, age 24, and another…

Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that two New York men were sentenced today by U.S. District Judge Omar A. Williams in Hartford for engaging in a wide-ranging mortgage fraud scheme involving 24 mortgage loans on numerous multifamily housing properties in Hartford totaling nearly $50 million.  JACOB DEUTSCH, 58, of Brooklyn, was sentenced to 62 months of imprisonment and four years of…

ASHEVILLE, N.C. – Shawn Thomas Johnson, 38, of Asheville, was sentenced today to 92 months in prison followed by three years of supervised release for bank fraud and possession of a firearm by a felon, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition, U.S. District Judge Martin Reidinger imposed a $2.77 million asset forfeiture judgement against Johnson.According to information contained in filed…

Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that MICHAEL DiMASSA, 32, of West Haven, was sentenced today by U.S. District Judge Omar A. Williams in Hartford to 27 months of imprisonment, followed five years of supervised release, for his involvement in schemes that resulted in the theft of more than $1.2 million dollars in COVID relief funds and other funds from the City of West Haven.  Judge…

  More than $10 Million Secured for Victims of Sexual Harassment Through Department’s Sexual Harassment in Housing Initiative The Justice Department announced today that it has secured an agreement to resolve a lawsuit alleging that New London, Connecticut, landlord Richard Bruno violated the Fair Housing Act by sexually harassing female tenants and applicants. The settlement also resolves claims against Domco LLC and Domco II LLC, which…