We audited Alpine First Preston Joint Venture II, LLC, a contracted asset manager in HUD’s real estate-owned Management and Marketing III program, as part of the activities included in our 2017 annual audit plan and because it was the sole contractor to market and sell U.S. Department of Housing and Urban Development (HUD) owned properties located in Illinois. Our audit objective was to determine whether Alpine complied with its contract with…

We reviewed the Miami-Dade County Homeless Trust’s Continuum of Care Program because our office had not audited this entity.  In addition, this assignment was in accordance with our annual audit plan and the U.S. Department of Housing and Urban Development’s (HUD) 2014-2018 strategic objective to end homelessness.  Our objective was to determine whether the Trust ensured that Program funds were used for eligible activities and…

The U.S. Department of Housing and Urban Development (HUD) awarded the Miami-Dade NSP Consortium more than $89.3 million in Neighborhood Stabilization Program (NSP) 2 funds.  We audited two of the consortium members, Neighborhood Housing Services of South Florida, the lead member, and the Urban League of Greater Miami, in accordance with our annual audit plan.  The audit objective was to determine whether the two members used NSP2…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), in coordination with the U.S. Department of Justice’s Civil Division and the U.S. Attorney’s Office for the Northern District of Illinois’ Eastern Division, conducted a joint review of the former president and founder of MDR Mortgage Corporation. MDR Mortgage provided annual verifications to HUD in 2006, 2007, and 2008, certifying that none of its…

We audited the U.S. Department of Housing and Urban Development’s (HUD) resident home-ownership program grant for West Park Place Condominium (project) based on the results of a risk assessment of multifamily housing programs in Region 5’s jurisdiction (States of Illinois, Indiana, Michigan, Minnesota, Ohio, and Wisconsin) and the activities in our fiscal year 2016 annual audit plan.  Our objective was to determine whether the West Park…

We audited the Broward County Housing Authority’s Section 8 Housing Choice Voucher program as part of the activities in our fiscal year 2016 annual audit plan.  Our objective was to determine whether the Authority administered its program in accordance with the U.S. Department of Housing and Urban Development’s (HUD) and its own requirements. The Authority did not always comply with HUD’s requirements and its own administrative policies…

We audited Mortgage Services III, LLC, a Federal Housing Administration (FHA)-approved direct endorsement lender, as part of the activities in our fiscal year 2016 annual audit plan.  We selected Mortgage Services for review based on an analysis of data in the U.S. Department of Housing and Urban Development’s (HUD) Single Family Data Warehouse system  for single-family lenders with home offices in Region 5’s jurisdiction. …

We audited P.K. Management Group, Inc. (PKMG), a contracted field service manager in HUD’s real estate-owned Management and Marketing III program, as part of the activities included in our 2016 annual audit plan and because it was the sole contractor performing property preservation and protection services for U.S. Department of Housing and Urban Development (HUD)-acquired properties located in Illinois in Region’s 5 jurisdiction.  Our…

We audited the City of Miami Beach’s Community Development Block Grant (CDBG) program in accordance with our annual audit plan because it had projects overseen by the same administration questioned in our audit of the City’s HOME Investment Partnerships Program. In addition, the U.S. Department of Housing and Urban Development’s Miami Office of Community Planning and Development ranked the City as high risk in its 2015 risk assessment. Our…

We audited the City of Miami Beach’s HOME Investment Partnerships Program, in accordance with our annual audit plan, because (1) the Miami U.S. Department of Housing and Urban Development (HUD) Office of Community Planning and Development ranked the City as high risk in its 2015 risk assessment and (2) HUD’s onsite monitoring review identified concerns with the City’s administration of the HOME program.  Our objective was to determine…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, audited the Alton Housing Authority because it appeared to have flat rents set at a rate below 80 percent of the fair market rent in that area based on the information available in the Public and Indian Housing Information Center system.  Our objective was to determine whether the Authority complied with HUD’s flat rent requirements. The Authority did…

We audited EdgeAlliance, Inc.’s Continuum of Care program funds for The Daniel R. Ruscitti Phoenix House (project).  The audit was part of the activities in our fiscal year 2015 annual audit plan.  We selected the project for review based upon a citizen’s complaint.  Our objectives were to determine whether EdgeAlliance complied with Federal requirements in its (1) maintenance of financial management systems for program funds and…

We audited the State of Illinois’ Community Development Block Grant Disaster Recovery program.  The audit was part of the activities in our fiscal year 2015 annual audit plan.  We selected the State’s program based on a congressional request from the Honorable Mark Kirk to review the State’s awards of program funds under the Consolidated Security, Disaster Assistance, and Continuing Appropriations Act of 2009 for three projects.…

We audited the U.S. Department of Housing and Urban Development’s (HUD) Resident Homeownership Program grant for Carmen-Marine Apartments (project).  The audit was part of the activities in our fiscal year 2015 annual audit plan.  We selected the project based on a request from HUD’s Chicago Multifamily Housing Hub.  Our objective was to determine whether the Carmen-Marine Cooperative and management agent operated the project in…

HUD OIG assisted the U.S. Attorney’s Office, Northern District of Illinois, in the investigation of Lakeview Sheridan, LLC, and Fremont Sheridan Properties.  Lakeview Sheridan is a multifamily property located in Chicago, IL, and Fremont Sheridan was the management company for Lakeview Sheridan.  Under section 223(f) of the National Housing Act, HUD insured the mortgage on Lakeview Sheridan in May 2006 through its Federal Housing…

We audited Broward County’s Continuum of Care Program, which was awarded more than $21 million in the 2011 through 2013 grant years. The objectives were to determine whether Broward County (1) spent grant funds for eligible program activities and ensured that expenditures were sufficiently supported and (2) maintained sufficient documentation to support that the funding sources used to match the grant funds were eligible. Broward County…

We audited the State of Florida’s Community Development Block Grant Disaster Recovery (CDBG-DR) program because the State was awarded more than $107 million to recover from the 2008 natural disasters and to undertake activities and long-term strategies that focus on reducing future natural disasters.  Further, the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, had not audited the State since 2006.…

We conducted a review of the Chicago Housing Authority’s payments for outside legal services in conjunction with an ongoing internal audit of the U.S. Department of Housing and Urban Development’s (HUD) oversight of public housing agencies’ expenditures for outside legal services.  Our review objective was to determine whether the Authority made payments for outside legal services in compliance with applicable requirements. We found that…

HUD OIG assisted the U.S. Attorney’s Office, Southern District of Florida, in the civil investigation of Group One Mortgage, Inc.  Group One’s principal place of business is located in Jupiter, FL.  Group One has participated in the FHA insurance program since 2004 and became a direct endorsement lender in 2005.  The direct endorsement program authorizes private-sector mortgage lenders to approve mortgage loans for FHA insurance…

We audited the Chicago Housing Authority’s Moving to Work Housing Choice Voucher program as part of the activities in our fiscal year 2014 annual audit plan.  We selected the Authority based on a request from Congressman Aaron Schock and recent media attention regarding the Authority’s exception payment standards.  Our objective was to determine whether the Authority complied with its Moving to Work agreement, the U.S. Department of…