HUD OIG performed an audit of the Housing Authority of DeKalb County’s use of its net restricted assets based on a request from the Atlanta Office of Public Housing. The request indicated that a significant amount of net restricted assets was used to pay for items other than the required housing assistance payments. The purpose of the audit was to determine how the Authority expended its net restricted assets and what controls were in place to…

The U.S. Department of Housing and Urban Development's Office of Inspector General (OIG) reviewed 15 Federal Housing Administration (FHA) loans that D & R Mortgage Corporation (D & R) underwrote as an FHA direct endorsement lender. Our review objective was to determine whether D & R underwrote the 15 loans in accordance with FHA requirements. This review is part of Operation Watchdog, an OIG initiative to review the underwriting…

The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General (OIG) reviewed 20 Federal Housing Administration (FHA) loans that Mac-Clair Mortgage Corporation (Mac-Clair) underwrote as an FHA direct endorsement lender. Our review objective was to determine whether Mac-Clair underwrote the 20 loans in accordance with FHA requirements. This review is part of “Operation Watchdog”, an OIG initiative to review the…

The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General (OIG) reviewed 20 Federal Housing Administration (FHA) loans that Birmingham Bancorp Mortgage Corporation (Birmingham) underwrote as an FHA direct endorsement lender. Our review objective was to determine whether Birmingham underwrote the 20 loans in accordance with FHA requirements. This review is part of “Operation Watchdog,” an OIG initiative to…

The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General audited the Michigan State Housing Development Authority’s (Authority) Section 8 Project-Based Voucher program (program). The audit was part of the activities in our fiscal year 2010 annual audit plan. We selected the Authority’s program based upon our analysis of the housing authorities’ programs in Region V’s jurisdiction and as part of our internal audit…

In accordance with our goal to review funds provided under the American Recovery and Reinvestment Act of 2009 (Recovery Act), the U.S. Department of Housing and Urban Development's Office of Inspector General conducted a capacity review of the Benton Harbor Housing Commission’s (Commission) operations. We selected the Commission based upon the results of our audit of the Commission’s Public Housing Capital Fund (Capital Fund) program (see…

The U.S. Department of Housing and Urban Development's Office of Inspector General reviewed the City of Saginaw’s (City) Community Development Block Grant (Block Grant) program under the American Recovery and Reinvestment Act of 2009 (Act). The review was part of the activities in our fiscal year 2010 annual audit plan. We selected the City based upon the results of our prior audit of the City’s Block Grant-funded demolition activities. Our…

HUD OIG performed an audit of Mortgage Counseling Services, Inc., a Federal Housing Administration approved non-supervised lender. The review was performed based on the lender’s high default rates. The purpose of the audit was to determine whether the lender followed the U.S. Department of Housing and Urban Development’s (HUD) requirements for (1) borrower eligibility and creditworthiness and property eligibility when underwriting loans and (2…

The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General reviewed Wayne County’s (County) Neighborhood Stabilization Program (Program). The review was part of the activities in our fiscal year 2009 annual audit plan. We selected the County based upon a request from HUD’s Detroit Office of Community Planning and Development. Our objective was to determine whether the County had the capacity to effectively and…

The City of Atlanta (City) received a $12.3 million Neighborhood Stabilization Program (NSP) grant from HUD that was authorized under Title III of the Housing and Economic Recovery Act. Also, the City applied for an additional $57.9 million in NSP funds under the American Recovery and Reinvestment Act of 2009. We selected the City for review due to the amount of its NSP funding and because of performance concerns identified during our previous…

The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General audited the Grand Rapids Housing Commission’s (Commission) Section 8 Project-Based Voucher program (program). The audit was part of the activities in our fiscal year 2009 annual audit plan. We selected the Commission’s program based upon our internal audit survey of HUD’s oversight of the program and our analysis of risk factors relating to the housing…

The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General audited the City of Saginaw’s (City) Community Development Block Grant (Block Grant) program-funded demolition activities. The audit was part of the activities in our fiscal year 2009 annual audit plan. We selected the City based upon a request from HUD’s Detroit Office of Community Planning and Development. Our audit objective was to determine whether the…

HUD OIG performed an audit of the Housing Authority of the City of Conyers' administration of its disbursements and procurement procedures. The Georgia State Office of Public Housing requested the audit due to concerns regarding the use of its funds and violation of its procurement procedures The purpose of the audit was to determine whether the Authority used its federal funds in compliance with HUD regulations and other requirements. The…

HUD OIG performed an audit of the Housing Authority of the City of Conyers' administration of its disbursements and procurement procedures. The Georgia State Office of Public Housing requested the audit due to concerns regarding the use of its funds and violation of its procurement procedures The purpose of the audit was to determine whether the Authority used its federal funds in compliance with HUD regulations and other requirements. The…

The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General audited the Michigan State Housing Development Authority’s (Authority) Section 8 Project-Based Voucher program (program). The audit was part of the activities in our fiscal year 2009 annual audit plan. We selected the Authority’s program based upon our internal audit survey of HUD’s oversight of the program and our analysis of risk factors relating to the…

The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General audited the City of Flint’s (City) HOME Investment Partnerships Program (Program). The audit was part of the activities in our fiscal year 2009 annual audit plan. We selected the City based upon our analysis of risk factors relating to Program grantees in Region V’s jurisdiction and a citizen complaint to our office. Our audit objectives were to determine…

The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General performed an audit of Custom Closing Services, Incorporated (Custom), a contractor closing sales of HUD real estate-owned properties in the state of Michigan. The audit was conducted based on a complaint to our hotline alleging that Custom caused significant delays in the closing of HUD homes in Michigan. Our audit objective was to determine whether…

We audited the City of Atlanta’s (City) HOME Investment Partnerships Program (HOME) because it has received more than $17 million in HOME funding since 2005. Our objective was to determine whether the City accurately entered commitments into the U.S. Department of Housing and Urban Development’s (HUD) Integrated Disbursement and Information System (information system) for HOME-funded activities. The City did not comply with HUD requirements…

We audited the U.S. Department of Housing and Urban Development’s (HUD) HOME Investment Partnerships Program (HOME) as part of our fiscal year 2009 annual audit plan. Our audit objectives were to assess the adequacy of HUD’s monitoring and implementation of requirements to recapture HOME funds not committed within two years and spent within five years, assess the adequacy of HUD’s monitoring and use of its Integrated Disbursement and…

HUD OIG performed an audit of the Housing Authority of the City of Newnan’s activities with its related nonprofit organization, the Newnan Housing Development Corporation. The review was performed based on concerns that the Authority encumbered its assets, used its federal funds to support nonprofit development activities, and had a conflict-of-interest transaction. The purpose of the audit was to determine whether the Authority…