We audited Prudential’s underwriting of a $49 million mortgage loan to develop the Preserve at Alafia, a multifamily project located in Riverview, FL.  We initiated the review based on the early default, assignment, and significant amount of the project.  Our objective was to determine whether Prudential underwrote and processed the loan for the Preserve of Alafia according to the U.S. Department of Housing and Urban Development’s (…

We audited the Housing Authority of the City of Stamford, doing business as Charter Oak Communities.  We received an anonymous complaint against the Authority related to an alleged improper procurement.  The complainant alleged that Authority officials awarded a contract to an employee’s spouse without following procurement and conflict-of-interest requirements.  In addition, a previous audit (Audit report number 2012-BO-1002…

We audited the Housing Authority of the City of Bridgeport, CT, to address complaints and areas that came to our attention during a prior audit.  Our objective was determine whether costs charged to Federal housing programs were eligible, reasonable, and supported.  Specifically, we determined whether officials properly (1) charged development staff costs, (2) charged Section 8 consulting costs, (3) implemented flat rents, (4) loaned…

We audited the Cumberland Plateau Regional Housing Authority’s HOME Investment Partnerships program because a Russell County, VA, special grand jury investigation resulted in the indictment of four people involved with the Authority’s HOME program.  Our audit objective was to determine whether the Authority procured services in accordance with U.S. Department of Housing and Urban Development (HUD) regulations and other applicable…

We audited the Hopewell Redevelopment and Housing Authority’s use of U.S. Department of Housing and Urban Development (HUD) Housing Choice Voucher and public housing program funds.  We audited the Authority because we received a complaint alleging that the Authority (1) improperly calculated tenant rents and utility allowances, (2) improperly managed the program waiting list, (3) used credit cards for personal transactions, (4) made…

We audited the Housing Authority of the City of Bridgeport, CT, based on a request from the U.S. Department of Housing and Urban Development (HUD), Hartford, CT, field office.  HUD officials were concerned about the Authority due to significant financial deficiencies that were not corrected in a timely manner.  Our audit objective was to determine whether Authority officials ensured that expenses charged to Federal programs were…

We audited the City of Norfolk’s Community Development Block Grant program based on our annual audit plan and a risk analysis, which indicated that the City had the most open activities in Virginia.  Our objective was to determine whether the City justified its program activities by ensuring that they were properly supported by adequate documentation and met national objectives as required.  The City could not provide adequate…

We audited Ofori & Associates, PC, regarding its U.S. Department of Housing and Urban Development (HUD) real estate-owned (REO) Management and Marketing (M&M) III program. This review was part of the Office of Inspector General’s efforts to improve the integrity of the single-family insurance program. Our audit objective was to determine whether Ofori complied with case processing requirements and timeframes to obtain the highest net…

We audited Prysma Lending Group, LLC, a nonsupervised lender, located in Danbury, CT, in support of the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General’s (OIG) goal of improving the integrity of the single-family insurance program. We selected Prysma for audit because its 3.28 percent default rate for Federal Housing Administration (FHA)-insured single-family loans with beginning amortization dates between…

We audited the Housing Authority ofthe City of Stamford, CT's administration of its Federal housing programs based on an anonymous complaint. Federal programs included Operating Fund, Section 8 programs (including the Housing Choice Voucher program, Section 8 Moderate Rehabilitation program, and Section 8 Moderate Rehabilitation Single Room Occupancy program), and Capital Fund programs. The Authority was also awarded an American Recovery…

We performed a corrective action verification review of the audit recommendations made on the procurement practices of the Housing Authority of the City of Danbury for finding 5 of Audit Report Number 2004-BO-1004, issued December 5, 2003. This review was based on a complaint. The purpose of the review was to determine whether the selected audit recommendations were implemented and the deficiencies cited in the report were corrected. The…

We audited the Housing Authority of the City of Hartford’s (the Authority’s) administration of its American Recovery and Reinvestment Act grant that funded a construction management contract based on a hotline complaint. Our objective was to determine if the Authority solicited, evaluated, and administered the $2.5 million grant funding and associated contract (the contract) properly and in accordance with federal requirements. We also visited…

We audited the Housing Authority of the City of New Haven’s (Authority) Public Housing Capital Fund (Capital Fund) and American Reinvestment and Recovery Act of 2009 Capital Fund (Recovery Act Capital Fund) projects for compliance with environmental and labor law requirements. We initiated this assignment because a previous Office of Inspector General (OIG) audit of the Authority’s Recovery Act Capital Fund activities identified a significant…

We selected the Housing Authority of the City of New Haven (Authority), a Moving to Work agency, because it obligated a majority of its $6 million in Public Housing Capital Fund Stimulus (formula) Recovery Act Funded grant (grant) received 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 (I) obligated its Recovery Act…

We audited the Virginia Housing Development Authority (Authority) because it received $44.2 million in Tax Credit Assistance Program (Program) funds under the American Recovery and Reinvestment Act of 2009 (Recovery Act). The Authority received the second largest amount of Program funds awarded in Region III. Our objective was to determine whether the Authority administered its Program in accordance with Recovery Act and applicable U.S.…

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…

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…

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 Fairfax, VA, branch office (branch office) of Prospect Mortgage, LLC (Prospect Mortgage), because it had one of the highest default rates for U.S. Department of Housing and Urban Development (HUD)-approved lenders for loans issued in the State of Maryland. Our objective was to determine whether Prospect Mortgage and its branch office complied with HUD regulations, procedures, and instructions in the origination and quality…

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…