The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General audited HUD's oversight of the Federal Housing Administration (FHA)-insured home equity conversion mortgages (HECM) program. We initiated the audit as part of the activities in our 2008 annual audit plan. Our audit objective was to assess elements of HUD's oversight of the HECM program. This is the first of two audit reports regarding the HECM program and…

The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General audited HUD's oversight of the underwriting of Federal Housing Administration (FHA)-insured loans for new construction properties located in the Federal Emergency Management Agency's (FEMA) designated special flood hazard areas. We initiated the audit as part of the activities in our 2007 annual audit plan. Our objective was to determine whether HUD had…

The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General audited HUD's use of residual receipts in lieu of reserve for replacement funds. The objective of the audit was to determine whether HUD appropriately authorized residual receipt withdrawals in lieu of reserve for replacement funds for new regulation multifamily projects. HUD inappropriately authorized the use of more than $3.2 million in residual receipt…

The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General audited the City of Dayton's (City) Community Development Block Grant program (program). The audit was part of the activities in our fiscal year 2008 annual audit plan. We selected the City based upon our increased emphasis on HUD's Office of Community Planning and Development's programs and a citizen's complaint. Our objectives were to determine whether…

The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General audited the City of Cincinnati's (City) HOME Investment Partnerships Program (Program). The audit was part of the activities in our fiscal year 2007 annual audit plan. We selected the City based upon a request from HUD's Columbus Office of Community Planning and Development and our analysis of risk factors relating to Program grantees in Region V's…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, audited HUD's Office of Single Family Housing (Single Family) due to concerns over the expected increase in Federal Housing Administration (FHA)-insured loans generated by newly implemented and proposed FHA programs. The objective of our audit was to determine whether Single Family had implemented an internal control structure in accordance with Government…

We audited HUD’s appraiser review process as part of our annual plan. The audit was proposed in response to a single-family loan origination audit that raised concerns regarding HUD’s oversight of FHA appraisers. This is the second of two audits covering HUD’s controls over the appraiser review process. The first audit report, 2008-LA-0002, focused on HUD’s oversight of the FHA appraiser roster; whereas this audit report focuses on the…

We completed an evaluation of public housing reconstruction with HUD funds on the Mississippi Gulf Coast. Our objective was to determine the status of the recovery efforts and determine how the risks of building on sites located in designated flood plains are being addressed. Hurricane Katrina damaged 29 project sites. After Hurricane Katrina, FEMA revised floodplain guidance in the affected areas, and HUD made $100 million in grant funds…

We completed an evaluation of HUD's Office of Fair Housing and Equal Opportunity (FHEO) and its nonprofit affiliated Fair Housing Assistance Program (FHAP) and their processing of housing discrimination complaints. The objective of our evaluation was to determine whether FHEO and FHAP intake and investigation processes are timely completed, consistently thorough, and accurately reported in the Title VIII Automated Paperless Tracking Office…

We completed an inspection of Section 8 housing assistance payments (HAP) to owners of multifamily properties in Louisiana that were severely damaged or destroyed by Hurricane Katrina in August 2005. The tenants vacated these properties shortly after Katrina struck. In the storm's aftermath, HUD and the Louisiana Housing Finance Agency (LHFA) continued to subsidize property owners, although many properties under HAP contract were vacant and not…