The East Orange Revitalization and Development Corporation Did Not Always Comply With HOME Program Requirements and Federal Regulations
We audited the East Orange Revitalization and Development Corporation (Corporation). We selected the Corporation based on a request for an audit from the Newark U.S. Department of Housing and Urban Development (HUD) Office of Community Planning and Development. The objective of the review was to determine whether the Corporation complied with HOME Investment Partnerships Program (HOME) requirements and Federal regulations.
Corporation…
April 07, 2011
Report
#2011-NY-1009
The City of East Orange Did Not Always Comply With HOME Program Requirements, Federal Regulations, and HOME Grant Agreements
As part of our audit of the East Orange Revitalization and Development Corporation (Corporation), we reviewed the City of East Orange’s (City) compliance with the HOME Investment Partnerships Program (HOME) in regard to the eligibility of an awarded capacity building grant and developer fees awarded to the Corporation. This review raised issues in regard to the City’s compliance with HOME program requirements, Federal regulations, and HOME…
April 07, 2011
Memorandum
#2011-NY-1801
The Missouri Housing Development Commission Did Not Always Disburse Its Tax Credit Assistance Program Funds in Accordance With Recovery Act Requirements
The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General audited the Missouri Housing Development Commission’s (Commission) Recovery Act funded Tax Credit Assistance Program (TCAP). Our audit objective was to determine whether the Commission expended Recovery Act grant funds in accordance with Recovery Act requirements and applicable U.S. Department of Housing and Urban Development (HUD) rules. We concluded…
April 01, 2011
Report
#2011-KC-1003
The Jersey City Housing Authority, Jersey City, NJ, Did Not Always Obligate or Disburse Replacement Housing Factor Capital Fund Grants in a Timely Manner
We audited the Jersey City Housing Authority’s (Authority) administration of its Replacement Housing Factor (RHF) grants received under the capital fund program. This is the third audit report regarding the Authority’s capital fund programs. We selected the Authority because of the size of its capital fund programs and because of its U.S. Department of Housing and Urban Development (HUD) risk rating. Our audit objective was to determine…
March 18, 2011
Report
#2011-NY-1008
The Jersey City Housing Authority, Jersey City, NJ, Had Financial Control Weaknesses in Its Recovery Act Funded Public Housing Capital Fund Program
We audited the Jersey City Housing Authority’s (Authority) administration of its public housing capital fund program funded under the American Recovery and Reinvestment Act of 2009 (Recovery Act). This is the second audit report regarding the Authority’s capital fund programs. We selected the Authority because of the size of its capital fund programs and because of its U.S. Department of Housing and Urban Development (HUD) risk rating. Our…
March 10, 2011
Report
#2011-NY-1007
The Irvington Housing Authority, Irvington, NJ, Did Not Administer Its Capital Fund Programs in Accordance With HUD Regulations
We conducted an audit of the Irvington Housing Authority’s (Authority) Capital Fund programs. The audit objectives were to determine whether Authority officials (1) obligated and expended its Capital Funds in accordance with U.S. Department of Housing and Urban Development (HUD) regulations, (2) had a financial management system in place that complied with program requirements and (3) whether the allegations in an anonymous complaint could be…
November 23, 2010
Report
#2011-NY-1003
The Irvington Housing Authority, Irvington, NJ, Did Not Administer Its Capital Fund Programs in Accordance With HUD Regulations
November 23, 2010
Report
#2011-NY-1003
The City of Bayonne, NJ Did Not Adequately Administer Its Economic Development Program
We audited the City of Bayonne, NJ's (City) Community Development Block Grant (CDBG) economic development activities in response to a complaint (HL- 09-1015) that contained four allegations. Our audit objectives were to determine whether the City (1) disbursed CDBG economic development funds efficiently and effectively in accordance with its submission to HUD and with the applicable rules and regulations, (2) used CDBG economic development…
November 11, 2010
Report
#2011-NY-1002
Citizen Complaint Against BIONIC Real Estate Services, LLC, St. Joseph, MO, Regarding Its Management of a HUD Section 236-Insured Multifamily Property Cannot Be Supported
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, audited allegations made against BIONIC Real Estate Services, LLC (BIONIC), a HUD-approved management agent, in a citizen complaint received by our office. The allegations related to BIONIC’s management of Powell Apartments, a HUD Section 236-insured multifamily property with partial project-based Section 8-subsidized units. The objective of our review was…
November 07, 2010
Report
#2011-DE-1001
The Jersey City Housing Authority, Jersey City, NJ, Had Administration
We audited the Jersey City Housing Authority's (Authority) administration of its capital fund programs. We selected the Authority because of the size of its capital fund programs and because of its US, Department of Housing and Urban Development (HUD) risk rating. Our audit objectives were to determine whether the Authority (I) obligated and expended funds under the Public Housing Capital Fund program (CFP) and Capital Fund Financing…
October 19, 2010
Report
#2011-NY-1001
Security Atlantic Mortgage Company, Inc., Edison, NJ, Did Not Properly Underwrite a Selection of FHA Loans
We conducted a review of Federal Housing Administration (FHA) loans underwritten by Security Atlantic Mortgage Company, Inc. (Security Atlantic), an FHA direct endorsement lender. This review was conducted as part of the Office of Inspector General’s (OIG) Operation Watchdog initiative to review the underwriting of 15 direct endorsement lenders at the suggestion of the FHA Commissioner. The Commissioner expressed concern regarding the…
September 22, 2010
Memorandum
#2010-NY-1806
The Missouri Housing Development Commission Did Not Always Obtain Required Documents and Properly Report on the Tax Credit Assistance Program Funded Under the Recovery Act
The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General audited the Missouri Housing Development Commission’s (Commission) Recovery Act funded Tax Credit Assistance Program (TCAP). Our audit objectives were to determine whether the Commission obtained wage reports and lobbying certifications required by Federal law and accurately reported job creation to Recovery.gov. We concluded that the Commission did…
September 10, 2010
Report
#2010-KC-1007
American Sterling Bank, Sugar Creek, MO, Did Not Properly Underwrite a Selection of FHA Loans
We reviewed 12 Federal Housing Administration (FHA) loans that American Sterling Bank (American) underwrote as an FHA direct endorsement lender. Our review objective was to determine whether American underwrote the 12 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…
August 24, 2010
Memorandum
#2010-LA-1806
The City of Jersey City, NJ's Community Development Block Grant Funds Used for a Float Loan Did Not Comply With Applicable Regulations
We completed an audit of the City of Jersey City’s (City) Community Development Block Grant (CDBG) float loan activity. Our audit objective was to determine whether the City ensured that CDBG funds used for the float loan complied with applicable rules and regulations.
The City did not comply with applicable regulations and failed to take timely action when the float loan defaulted. Specifically, it did not (1) make a good faith effort to…
July 01, 2010
Report
#2010-NY-1012
Infinity Home Mortgage Company, Inc., Cherry Hill, NJ, Did Not Implement a Quality Control Plan in Accordance With HUD Requirements
We audited Infinity Home Mortgage Company, Inc. (Infinity Home Mortgage), a nonsupervised lender approved to originate Federal Housing Administration (FHA) single-family mortgage loans. We selected Infinity Home Mortgage because its default rate for the State of Pennsylvania was significantly higher than the average default rate for the State. Our objective was to determine whether Infinity Home Mortgage complied with U.S. Department of Housing…
March 31, 2010
Report
#2010-PH-1005
The City of Jersey City, NJ, Needs to Strengthen Its Controls To Ensure That It Will Be Able To Effectively Administer CDBG-R Funds
We completed an audit of the City of Jersey City's (City) capacity to administer Community Development Block Grant (CDBG) funding provided under the American Recovery and Reinvestment Act of 2009 (Recovery Act). Our objectives were to evaluate the City’s capacity in the areas of internal controls, eligibility, financial controls, procurement, and output/outcomes in administering CDBG funds.
The City generally had adequate financial…
February 01, 2010
Report
#2010-NY-1007
The City of Paterson, New Jersey, Did Not Always Administer Its Community Development Block Grant Program in Accordance with HUD Requirements
We completed an audit of Community Development Block Grant (CDBG) program administered by the City of Paterson (City). Our audit objectives were to determine whether the City (1) disbursed CDBG funds efficiently and effectively in accordance with its submission to HUD and applicable rules and regulations and (2) had a financial management system in place to adequately safeguard the funds.
The City did not always disburse CDBG funds efficiently…
December 17, 2009
Report
#2010-NY-1005
Ark Mortgage, Incorporated, North Brunswick, New Jersey, Did Not Always Comply with HUD/FHA Loan Origination Requirements
We completed an audit of Ark Mortgage, Incorporated (Ark Mortgage), a nonsupervised direct endorsement lender located in North Brunswick, New Jersey. The audit objectives were to determine whether Ark Mortgage officials (1) originated insured loans in accordance with U.S. Department of Housing and Urban Development/Federal Housing Administration (HUD/FHA) requirements and (2) developed and implemented a quality control plan that complied with…
November 23, 2009
Report
#2010-NY-1004
Jersey Mortgage Company, Cranford, New Jersey, Did Not Always Comply with HUD/FHA Loan Underwriting Requirements
We completed an audit of Jersey Mortgage Company (Jersey Mortgage), a nonsupervised lender located in Cranford, New Jersey. The audit objectives were to determine whether Jersey Mortgage (1) approved Federal Housing Administration (FHA)-insured loans in accordance with the requirements of the U.S. Department of Housing and Urban Development (HUD)/FHA, which include adherence to prudent lending practices, and (2) developed and implemented a…
October 09, 2009
Report
#2010-NY-1002
James B. Nutter and Company
We reviewed Federal Housing Administration (FHA)-insured home equity conversion mortgages (HECM) loans originated by First Call Mortgage Company and sponsored by James B. Nutter & Company (J.B.Nutter) during the period of January 2007 to December 2008. We reviewed these loans because in September 2008 state banking regulators from New Hampshire and Massachusetts found that First Call used deceptive business practices and did not have the…
September 29, 2009
Report
#2009-BO-1012