We audited the Community Development Block Grant (CDBG) program administered by the City of Durham, North Carolina (City). The objective of the audit was to determine whether the City administered its program in accordance with U.S. Department of Housing and Urban Development (HUD) requirements. We selected the City for review based on HUD's risk assessment and previous monitoring reviews. The City did not administer its CDBG program in…

HUD OIG performed an audit of the City of Augusta's Community Development Block Grant Facade Rehabilitation Grant program due to concerns of mismanagement and abuse regarding the City's program. The purpose of the audit was to determine whether the City's facade program complied with federal requirements and whether program activities met the national objectives of the CDBG program The City did not have adequate controls over its…

HUD OIG performed corrective action verification for an audit recommendation cited in the audit report, Cuthbert Housing Authority, Public Housing Programs (2004-AT-1001) issued January 15, 2004. The purpose of the corrective action verification was to determine whether the selected audit recommendation was implemented and expended its funds in accordance with HUD regulations. The Authority did not comply with its HUD-approved agreement to…

We audited the City of Durham (City), North Carolina's HOME Investment Partnerships (HOME) program. Our audit objective was to determine whether the City complied with applicable federal procurement requirements with respect to its homeowner rehabilitation activity. This is the second of two audits of the City's program. The City did not advertise for homeowner rehabilitation contractors as required. Also, it did not take necessary…

We audited the City of Durham (City), North Carolina 's HOME Investment Partnerships (HOME) program as part of our annual audit plan. Our audit objectives were to determine whether the City complied with U.S. Department of Housing and Urban Development (HUD) requirements for monitoring HOME subrecipients and recording and using HOME program income. The City did not always perform required monitoring reviews or provide adequate evidence that…

HUD OIG audited Meridian Lending, Inc., a Federal Housing Administration (FHA)-approved direct endorsement lender. The objectives were to determine whether it 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) implementing a quality control program. Meridian did not follow HUD requirements in originating…

HUD OIG audited the City of Augusta's HOME Investment Partnerships program. The audit was part of the activities in the fiscal year 2007 annual audit plan. The objectives were to determine whether the City complied with HOME program requirements for commitments, production and completion of project activities, and eligibility and support of project costs. The City's controls over its HOME program were inadequate. As a result, more than…

As part of HUD OIG's strategic plan, we audited Fulton County's (County) HOME Investment Partnerships (HOME) program. Our audit objectives were to determine whether the County complied with HOME program requirements for review and approval of project activities, commitments, completion of project activities, eligibility and reasonableness of project costs, and matching funds. The County did not properly manage its HOME program and…

As part of HUD OIG's strategic plan, an audit was conducted of HUD's Atlanta Office of Public and Indian Housing oversight of the Housing Authority of DeKalb County's compliance with its memorandum of agreement. The primary objective was to determine whether Public Housing adequately monitored the Authority's implementation of operating improvements required in the agreement. Specifically, the objective was to determine…

ATLANTA - Kimberly Johnson has pleaded guilty for her role in a mortgage fraud scheme spanning more than three years and resulting in the approval of approximately 450 mortgage loans based on fabricated documents and false information. Many of the loans are insured by the Federal Housing Administration (FHA), resulting in claims being paid for mortgages that have defaulted.“The defendant and her co-conspirators brazenly manipulated the real…

SAVANNAH, GA:  The U.S. Attorney’s Office for the Southern District of Georgia, the Justice Department’s Civil Rights Division, and the U.S. Department of Housing and Urban Development and its Office of Inspector General (HUD OIG) hosted a Savannah roundtable for community members and organizations as part of the Justice Department’s Sexual Harassment in Housing Initiative.“Sexual harassment or abuse by a landlord is never acceptable,” said…

RALEIGH, N.C. – Two members of a New Bern family were sentenced for their role in a scheme to defraud a program designed to help struggling North Carolina residents stay in their homes during the COVID-19 pandemic. Takeeia Hawkins, age 43, and her daughter, Shanasia Hawkins, age 22, both pled guilty to conspiracy to commit mail fraud earlier this year. Takeeia Hawkins was sentenced to 36 months in prison for her role in the scheme, while…

The Justice Department announced today that Iraj Shambayati, a landlord who owns and manages over 45 residential properties in and around Savannah, Georgia, has agreed to pay $600,000 to resolve allegations that he violated the Fair Housing Act (FHA) by sexually harassing and retaliating against his female tenants for over 15 years.“No female tenant should have to endure sexual harassment and abuse in the sanctity of her own home,” said…

Focused on the Use of the Fair Housing Act to Prevent and Address Complaints of Sexual Harassment in HUD-Assisted HousingRALEIGH, N.C. – United States Attorneys Michael Easley for the Eastern District of North Carolina, Sandra Hairston for the Middle District of North Carolina, and Dena King for the Western District of North Carolina joined the Civil Rights Division and the Department of Housing and Urban Development’s Office of Inspector…

ATLANTA - Matthew Allen Dickason, a disbarred attorney who was previously licensed to practice law in the State of Georgia, has been sentenced to federal prison for embezzling more than $3 million from his clients. Dickason used the money for personal purposes and created phony accounting records to cover up his theft.                                   …