We audited the Neighborhood Assistance Corporation of America (NACA), a Department of Housing and Urban Development (HUD)-approved organization providing housing counseling services to qualified home buyers or homeowners with unaffordable mortgage payments. The audit was initiated at the direction of HUD's Inspector General. Our audit objective was to determine whether NACA properly administered its HUD grants used for housing counseling…

We audited the Housing Choice Voucher program (Voucher program) at the Brockton Housing Authority (Authority) as part of our annual audit plan. Theoverall objective of the audit was to determine whether the Authority efficientlyand effectively administered its Voucher program in compliance with its annual contributions contracts and U.S. Department of Housing and Urban Development (HUD) regulations. Our efforts focused on whether the Authority (…

We audited NFM, Inc. (NFM), a nonsupervised lender approved to originate Federal Housing Administration (FHA) single-family mortgage loans. We selected NFM based on significant risk indicators, which included a high percentage of loans with front- and/or and back-end ratios in excess of U.S. Department of Housing and Urban Development (HUD) requirements and loans defaulting within six or fewer payments. Our objective was to determine whether…

We audited the Cambridge Housing Authority (Authority) because it obligated a majority of its $4.4 million Public Housing Capital Fund Stimulus (Formula) Recovery Act Funded grant (grant) received under the American Recovery and Reinvestment Act of 2009 just before the required obligation deadline. Our objective was to determine whether the Authority obligated and disbursed capital funds received under the Recovery Act according to the…

We audited the Boston, MA, Housing Authority (Authority) because it was awarded more than $33 million in Capital Fund Recovery Grant funds under the American Recovery and Reinvestment Act of 2009 (Recovery Act) and obligated the majority of the grant shortly before the required obligation deadline. Our objectives were to determine whether the Authority (1) obligated the capital fund grant funds it received under the Recovery Act for eligible…

We audited the Housing Authority of Baltimore City’s (Authority) administration of its Public Housing Capital Fund grants that it received under the American Recovery and Reinvestment Act of 2009 (Recovery Act). We selected the Authority for audit because it received a $32.7 million formula grant, which was the largest formula grant awarded in the State of Maryland. Our audit objective was to determine whether the Authority administered…

We reviewed 20 Federal Housing Administration (FHA) loans that Dell Franklin Financial, LLC (Dell), underwrote as an FHA direct endorsement lender. Our review objective was to determine whether Dell underwrote the 20 loans in accordance with FHA requirements. This review is part of Operation Watchdog, an Office of Inspector General (OIG) initiative to review the underwriting of 15 direct endorsement lenders at the suggestion of the FHA…

We conducted this audit as part of the Office of Inspector General’s (OIG) annual goals for audits of the Section 8 Housing Choice Voucher (Voucher) and low-income public housing (low-income) programs. Our audit objective was to determine whether the Waltham Housing Authority (Authority) employed acceptable management and financial practices to efficiently and effectively administer the use of Voucher and low-income program funds in compliance…

We audited the Elkton Housing Authority (Authority) because it received Public Housing Capital Fund Recovery Act grant (grant) funding as part of the American Recovery and Reinvestment Act of 2009 (Recovery Act). Our objective was to determine whether the Authority obligated and disbursed capital funds received under the Recovery Act according to the requirements of the act and applicable U.S. Department of Housing and Urban Development (HUD)…

We reviewed the U.S. Department of Housing and Urban Development’s (HUD) Office of Community Planning and Development’s (CPD) risk assessment process. We initiated the review as part of the activities in our fiscal year 2010 annual audit plan. Our objective was to determine whether CPD had established and properly implemented a risk assessment process that used appropriate measures to determine risk and identify grantees for monitoring. We found…

We audited Residential Home Funding Corporation, a nonsupervised lender approved to originate Federal Housing Administration (FHA) single-family mortgage loans. Residential Home Funding Corporation has one office located in Gaithersburg, Maryland. We selected Residential Home Funding Corporation because its default rate was significantly higher than the average default rate for the State of Maryland. Our objective was to determine whether…

We audited the Section 8 Project-Based Voucher program operated by the State of Massachusetts, Department of Housing and Community Development (DHCD), as part of our annual audit plan. Our objective was to determine whether the DHCD properly administered its Project-Based Voucher program in compliance with U.S. Department of Housing and Urban Development (HUD) requirements. The DHCD generally administered its program in compliance with HUD…

We audited the HOME Investment Partnerships Program (HOME) and Community Development Block Grant (CDBG) funded housing programs administered by the City of Holyoke’s Office of Community Development (City) as part of our annual audit plan. The City was selected based upon our analysis of risk factors relating to HOME grantees in Region 1. Our objective was to determine whether the City properly administered its HOME and CDBG funded housing…

We conducted a capacity review of the operations of the City of Brockton’s (City) grantee, Building a Better Brockton, Inc. (recipient), which has responsibility for administering the City’s NSP. Our objective was to determine whether the City and/or its recipient had the capacity to effectively and efficiently administer its NSP under the provisions of the Housing and Economic Recovery Act of 2008 (HERA) and the American Recovery and…

We performed an audit of the City of Boston’s (City) Department of Neighborhood Development (Department). We selected the City based upon the results of our previous audit of the City’s HOME Investment Partnerships Program (HOME) and the significance of the Neighborhood Stabilization Program (NSP) funds awarded. Our objective was to determine whether the City had the capacity to effectively and efficiently administer its NSP under the provisions…

We performed an audit of the City of Boston’s (City) Department of Neighborhood Development (Department). We selected the City based upon the results of our previous audit of the City’s HOME Investment Partnerships Program (HOME) and the significance of the Neighborhood Stabilization Program (NSP) funds awarded. Our objective was to determine whether the City had the capacity to effectively and efficiently administer its NSP under the provisions…

We initiated an audit of the City of Holyoke, Massachusetts, Office of Community Development's (City) award and use of HOME Investment Partnerships (HOME) program set-aside funds as part of our annual audit plan. Our objective was to determine whether the City ensured that Contemporary Apartments, Inc. (Contemporary Apartments), met community development housing organization (CHDO) qualification requirements and whether the related CHDO…

We audited the Housing Choice Voucher program (Voucher program) at the Quincy Housing Authority (Authority) as part of our annual audit plan. Our efforts focused on whether the Authority (1) ensured that its Section 8 administrative plan met the requirements of 24 CFR (Code of Federal Regulations) 982.54, (2) adequately accounted for its indirect cost charges, (3) used Voucher program funds only for the administration of the program and whether…

We audited the Housing Authority of the City of Annapolis' (Authority) management of lead-based paint in its public housing units in response to a citizen complaint. The audit objective was to determine whether the Authority complied with U.S. Department of Housing and Urban Development (HUD) and State of Maryland (State) requirements for inspecting and abating lead-based paint hazards in its public housing units. The Authority did not…

We audited the Housing Choice Voucher (Voucher) program at the Taunton Housing Authority (Authority) as part of our annual audit plan. The overall audit objective was to determine whether the Authority efficiently administered its Voucher program in compliance with its annual contributions contract and U.S. Department of Housing and Urban Development (HUD) regulations. Our specific objectives were to determine whether the Authority used Voucher…