We reviewed the Housing Authority of the City of Wilson (Authority) because it was granted $9.2 million for Public Housing Capital Fund projects (capital funds) under the American Recovery and Reinvestment Act of 2009 (Recovery Act). In addition, we received a citizen’s complaint alleging that the Authority used unethical procurement practices and did not plan to use Recovery Act funds effectively. Our objectives were to evaluate the Authority…

HUD OIG performed a review of selected transactions at the Wilmington Housing Authority (Authority) in conjunction with our review of a citizen’s hotline complaint. Among other concerns, the complainant alleged that the Authority misused U.S. Department of Housing and Urban Development (HUD) funds in conjunction with its purchase of Eastbrook Apartments in September 2005. Our objective was to determine whether the Authority misused HUD funds…

The U. S. Department of Housing and Urban Development's Office of Inspector General reviewed the City of Ogden, UT’s (City) HOME Investment Partnerships Program (HOME) to determine whether the City effectively established HOME projects, ensured that HOME funds were used for eligible HOME expenses, and properly monitored the HOME projects. The City appropriately established HOME projects, used HOME funds for eligible HOME expenses, and…

The U.S. Department of Housing and Urban Development (HUD) awarded the Housing Authority of the City of Winston-Salem (Authority) $3.9 million in formula-based capital funds under the American Recovery and Reinvestment Act of 2009 (ARRA). HUD’s Office of Inspector General evaluated the Authority’s capacity to administer these funds. We found that the Authority generally has the capacity to administer these funds but needed to improve some…

HUD OIG performed an audit of the High Point Housing Authority’s (Authority) U.S. Department of Housing and Urban Development (HUD) Section 8 Housing Choice Voucher program pursuant to a citizen’s complaint. Our objectives were to determine whether the Authority properly (1) enforced HUD’s housing quality standards, (2) calculated Section 8 administrative fees, and (3) determined housing assistance subsidies and issued vouchers to qualified…

The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General audited SecurityNational Mortgage Company (SecurityNational), a Federal Housing Administration (FHA)-approved direct endorsement lender, to determine whether it properly underwrote insured loans and whether its quality control function met requirements. SecurityNational did not follow HUD regulations when underwriting 18 FHA-insured loans. One of the…

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…

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…

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…

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…

GREENSBORO – A Durham, North Carolina woman was sentenced today to 30 months in prison, after pleading guilty to conspiring to commit wire fraud that victimized the Chatham County Housing Authority, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina (MDNC).JOANN JOHNSON DAVIS, age 65, was sentenced to a 30-month term of imprisonment and ordered to pay restitution in the amount of $194,136 by the…

RALEIGH, N.C. – Two members of a New Bern family pled guilty 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 and face up to 30 years at sentencing later this year. Takeeia Hawkins’ son, Jmari Hawkins, age 24, and another…

ASHEVILLE, N.C. – Shawn Thomas Johnson, 38, of Asheville, was sentenced today to 92 months in prison followed by three years of supervised release for bank fraud and possession of a firearm by a felon, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition, U.S. District Judge Martin Reidinger imposed a $2.77 million asset forfeiture judgement against Johnson.According to information contained in filed…

ASHEVILLE, N.C. – U. S. District Judge Martin Reidinger sentenced Ginger Lynn Cunningham, 39, formerly of Hendersonville and currently residing in Brevard, to 14 months in prison yesterday, for selling fake title insurance policies, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Cunningham was ordered to serve three years under court supervision and to pay $412,344 as…