The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted the U.S. Department of Justice (DOJ), Washington, DC, and the U.S. Attorney’s Office for the Middle District of Florida in a civil investigation of Financial Freedom Acquisition, a division of CIT Bank, N.A.  Financial Freedom was originally owned by IndyMac Bank until its failure in 2008, when the Federal Deposit Insurance Corporation…

We audited the Housing Authority of the City of Hammond, IN’s Housing Choice Voucher program based on the activities included in our 2017 annual audit plan and our analysis of risk factors related to the public housing agencies in Region 5’s jurisdiction.  Our audit objective was to determine whether the Authority correctly calculated housing assistance and utility allowances and appropriately managed its Family Self-Sufficiency program.…

We audited the multifamily project-based Section 8 program at the Beverly Place Apartments.  We selected Beverly Place because we received a complaint of potential fraud, suggesting that the complex did not have appropriate controls to ensure tenant and unit eligibility.  Our objective was to determine whether the owner administered its project-based Section 8 program in accordance with U.S. Department of Housing and Urban Development…

We audited the Weslaco Housing Authority, Weslaco, TX, because of issues noted in the Authority’s travel while reviewing its independent public accountant’s audited financial statements.  Our audit objective was to determine whether the Authority complied with Federal, State, and local requirements for its travel payments. The Authority paid its commissioners and employees for ineligible, unreasonable, unnecessary, and unsupported travel…

In coordination with our Office of Investigations, we audited the Housing Authority of the City of Jasper, TX, because we received a complaint.  The complainant’s allegations included the executive director’s misuse of Authority vehicles and other issues.  Our audit objective was to determine whether the Authority operated its Public Housing programs in compliance with the U.S. Department of Housing and Urban Development’s (HUD)…

The Houston Housing Authority, Houston, TX, Needs To Improve Its Procurement and Financial Operations and Its Housing Choice Voucher Program Subsidy Determinations We audited the Houston Housing Authority’s public housing and Housing Choice Voucher programs.  We selected the Authority for review in accordance with our audit plan and based upon risk analyses.  Our objectives were to determine whether the Authority (1) followed U.S.…

Based on the results of a prior audit, we reviewed Fort Worth Housing Solutions (FWHS) and transactions with its related entity QuadCo Management Solutions, LLC (QuadCo) of Fort Worth, TX.  Our objectives were to determine whether FWHS (1) properly managed its U.S. Department of Housing and Urban Development (HUD) funds, specifically whether it improperly loaned $1.6 million in HUD funds to QuadCo; (2) paid management fees within HUD’s…

We audited Baldwin Creek Apartments as part of the activities in our fiscal year 2016 annual audit plan.  We selected the project based on our analysis of risk factors related to multifamily projects in Region 5’s jurisdiction1.   Our objective was to determine whether the project’s owner and management agents operated the project in accordance with the U.S. Department of Housing and Urban Development’s (HUD) requirements and the…

We audited Park View Care Center’s owner based on a referral from the U.S. Department of Housing and Urban Development’s (HUD) Departmental Enforcement Center.  Our objective was to determine whether the property owner complied with the owner’s regulatory agreement and HUD requirements for the Section 232 program.  Park View’s owner did not comply with all the terms of its regulatory agreement and HUD requirements.  Specifically…

We audited the Harris County Community Services Department’s Community Development Block Grant (CDBG) program based on our risk analysis and as part of our annual audit plan to review community planning and development funds.  The audit objective was to determine whether the Department properly administered and adequately documented its CDBG program activities in accordance with U.S. Department of Housing and Urban Development (HUD)…

We reviewed the Malakoff Housing Authority, Malakoff, TX. The review was part of a joint initiative between the HUD Office of Inspector General’s Office of Audit and Office of Investigation. We completed the review and referred the former executive director’s improper use of Authority funds by hiring and contracting with family members to HUD’s Office of Program Enforcement for action under the Program Civil Fraud Remedies Act of 1986. On May…

We reviewed the City of Brackettville Housing Authority, Brackettville, TX. The review was part of a joint initiative between the HUD Office of Inspector General’s (OIG) Office of Audit and Office of Investigation. We completed the review and referred the former executive director’s improper use of Authority funds for personal expenses to HUD’s Office of Program Enforcement for action under the Program Civil Fraud Remedies Act of 1986. On…

We audited the Housing Authority of the City of Muncie’s Housing Choice Voucher program based on the activities included in our 2016 annual audit plan and our analysis of risk factors related to the public housing agencies in Region 5’s jurisdiction.  Our audit objective was to determine whether the Authority administered its program in accordance with HUD’s and its own requirements. The Authority did not always administer its program in…

We audited the Housing Authority of the City of Anderson’s Housing Choice Voucher program based on the activities included in our 2016 annual audit plan and our analysis of risk factors related to the public housing agencies in Region 5’s jurisdiction.  Our audit objective was to determine whether the Authority administered its program in accordance with HUD’s and its own requirements. The Authority did not always administer its program in…

We audited the State of Indiana’s 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 because it received the most program funds under the Consolidated Security, Disaster Assistance, and Continuing Appropriations Act of 2009 in Region 5’s1  jurisdiction.  Our objectives were to determine whether the State’s Office…

In accordance with the Office of Inspector General’s (OIG) goal to ensure the integrity and soundness of the U.S. Department of Housing and Urban Development’s (HUD) Public and Indian Housing programs and to follow up on weaknesses identified in another review, we reviewed the Housing Authority of the City of Pearsall, TX, to determine whether it followed Federal procurement and the State of Texas’ requirements when contracting for its interim…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted in an investigation into alleged violations by Reverse Mortgage Solutions, Inc., of Federal Housing Administration (FHA) regulations related to its Home Equity Conversion Mortgage (HECM) program.  The investigation began due to a qui tam filed under the False Claims Act, 31 U.S.C. (United States Code) 3729, in the U.S. District Court for…

We audited the Housing Authority of the City of South Bend, IN’s Section 8 Housing Choice Voucher program based on our analysis of risk factors related to the public housing agencies in Region 5’s jurisdiction  and the activities included in our fiscal year 2015 annual audit plan. Our audit objectives were to determine whether the Authority (1) correctly calculated and paid housing assistance and utility allowances, (2) obtained and…

In accordance with our regional audit plan, we performed a number of reviews of very small and small housing agencies located in the U.S. Department of Housing and Urban Development’s (HUD) Region 6 jurisdiction.  We worked with HUD’s Office of Public and Indian Housing (PIH) and Departmental Enforcement Center and the Office of the Inspector General’s (OIG) Office of Investigation to identify housing agencies with areas of concern. …

We audited First Source Bank, a Federal Housing Administration (FHA) supervised lender located in South Bend, IN.  We selected First Source based on our analysis of risk factors of single-family loan servicers in Region 5’s jurisdiction4.   Our audit objectives were to determine whether First Source (1) consistently and appropriately applied loss mitigation options for eligible borrowers, (2) accurately reported the default and…