We reviewed 19 Federal Housing Administration (FHA) loans Americare Investment Group (Americare) underwrote as an FHA direct endorsement lender. Our review objective was to determine whether Americare underwrote the 19 loans in accordance with FHA requirements. This review is part of Operation Watchdog, an Office of Inspector General (OIG) initiative to review the underwriting of 15 direct endorsement lenders at the suggestion of the FHA…

We reviewed 20 Federal Housing Administration (FHA) loans that Alacrity Lending Company (Alacrity) underwrote as an FHA direct endorsement lender. Our review objective was to determine whether Alacrity underwrote the 20 loans in accordance with FHA requirements. This review is part of Operation Watchdog, an Office of Inspector General (OIG) initiative to review the underwriting of 15 direct endorsement lenders at the suggestion of the FHA…

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 (…

We audited the U. S. Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG), Supplemental II Disaster Recovery program, funds, administered by the Texas Department of Housing and Community Affairs (TDHCA). Specifically, we wanted to determine whether TDHCA followed Federal and State of Texas (State) regulations in procuring the program management firm to administer the Housing Assistance and Sabine Pass…

We audited the Georgetown Housing Authority (Authority) due to a congressional request. Our objectives were to determine (1) whether the Authority and/or its nonprofit affiliates used U. S. Department of Housing and Urban Development (HUD) funding for recent developments and if so, whether they followed HUD regulations and (2) whether the Authority used HUD funds only for eligible expenditures. The Authority’s nonprofit related entities did not…

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…

As part of our organization’s commitment to ensure the proper use of recovery funding, we performed a review of the City of Grand Prairie’s (City) operations to evaluate its capacity to administer the $3.2 million received under the Housing and Economic Recovery Act of 2008 and the American Recovery and Reinvestment Act of 2009 (Recovery Act). Specifically, our objective was to review and assess the City’s capacity and risks in the following…

As part of the Office of the Inspector General’s (OIG) directive to determine whether safeguards exist to ensure that American Recovery and Reinvestment Act of 2009 (Recovery Act) funds are used for their intended purposes, we conducted a capacity review of the City San Antonio, TX (City) operations. Our objective was to determine whether the City had the capacity to account for Recovery Act funds and the controls to ensure that it expends…

As part of the Office of the Inspector General’s (OIG) directive to determine whether safeguards exist to ensure that American Recovery and Reinvestment Act of 2009 (Recovery Act) funds are used for their intended purposes, we audited the Dallas Housing Authority’s (Authority) Recovery Act Public Housing Capital Fund formula grant (grant). Our objective was to evaluate the Authority’s capacity in the areas of internal controls, eligibility,…

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 Office of Inspector General (HUD OIG) audited the Housing and Urban Development (HUD) Community Development Block Grant (CDBG), Supplemental I and II Disaster Recovery program funds, administered by the Texas Department of Housing and Community Affairs (TDHCA). Specifically, we wanted to determine whether TDHCA administered the floodplain management program as required by federal, state,…

The City of Fort Worth (City) is scheduled to receive $10.85 million in Recovery Act funding. The Department of Housing and Urban Development (HUD) Office of Inspector General (OIG) issued a memorandum on the City’s capacity to administer these funds. We reported the City had a history of failing to meet regulatory requirements in an efficient or timely manner. The City needs to strengthen its capacity to adequately administer recovery…

The Department of Housing and Urban Development (DHUD) Office of Inspector General has issued a memorandum on the Travis County (Texas) Housing Authority’s (Authority) capacity to administer Recovery Act funds. The memorandum reports that the Authority lacks capacity to administer ARRA public housing capital funds. The OIG recommended that HUD increase monitoring and oversight of the Authority’s financial and program activities, and either…

We audited the Housing Authority of Travis County (Authority) due to several problem indicators including the U. S. Department of Housing and Urban Development’s (HUD) rejecting the Authority’s 2005 and 2006 audited financial statements and noting that the Authority’s 2007 financial statements contained $4.1 million in interprogram transfers and a negative $579,783 administrative fee reserve. Our objectives were to determine (1) whether the…

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.…

We audited the Casa Otonal multifamily housing project, located in New Haven, Connecticut, based on a referral received from the U.S. Department of Housing and Urban Development’s (HUD) Hartford Program Center. The referral disclosed compliance findings regarding the project’s audited financial statements, including instances of unauthorized loans/disbursements to an affiliate. Our primary audit objective was to determine whether the project…

We conducted an audit of the City of Houston’s (City) Housing Opportunities for Persons with AIDS (HOPWA) program, which is managed by its Housing and Community Development Department (Department), as part of our strategic plan and regional goals. Our objective was to determine whether the City and its project sponsors complied with U. S. Department of Housing and Urban Development (HUD) HOPWA regulations, requirements and its grant agreements.…

We selected the Tarrant County Community Development Division (Tarrant County) HOME Investment Partnerships Program (HOME) and Neighborhood Stabilization Program (NSP) for review because the U. S. Department of Housing and Urban Development's management expressed concerns about Tarrant County's HOME program. The objectives were to determine Tarrant County's (1) compliance with HOME regulatory requirements, (2) eligibility of HOME…

As part of our strategic plan objective to assist the U. S. Department of Housing and Urban Development's (HUD) efforts to reduce rental assistance overpayments, we audited the Housing Authority of the City of El Paso's (Authority) Housing Choice Voucher program (program). The purpose of our audit was to determine whether the Authority properly administered its overall program. Specifically, we wanted to determine whether the Authority…