Alacrity Lending Company, Southlake, TX, Did Not Properly Underwrite a Selection of FHA Loans
We reviewed 20 Federal Housing Administration (FHA) loans that Alacrity Lending Company (Alacrity) underwrote as an FHA direct endorsement lender. Our review objective was to determine whether Alacrity 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…
July 26, 2010
Memorandum
#2010-LA-1803
The Texas Department of Housing and Community Affairs Did Not Fully Follow Requirements or Best Practices in the Acquisition of Its Disaster Recovery-Funded Program Management Firm
We audited the U. S. Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG), Supplemental II Disaster Recovery program, funds, administered by the Texas Department of Housing and Community Affairs (TDHCA). Specifically, we wanted to determine whether TDHCA followed Federal and State of Texas (State) regulations in procuring the program management firm to administer the Housing Assistance and Sabine Pass…
July 20, 2010
Report
#2010-FW-1005
The Georgetown Housing Authority Used $195,855 for Ineligible and Unsupported Expenditures
We audited the Georgetown Housing Authority (Authority) due to a congressional request. Our objectives were to determine (1) whether the Authority and/or its nonprofit affiliates used U. S. Department of Housing and Urban Development (HUD) funding for recent developments and if so, whether they followed HUD regulations and (2) whether the Authority used HUD funds only for eligible expenditures.
The Authority’s nonprofit related entities did not…
June 02, 2010
Report
#2010-FW-1004
The City of Grand Prairie, TX, Maintains Capacity to Adequately Administer Recovery Funding But Needs to Make Program Improvements
As part of our organization’s commitment to ensure the proper use of recovery funding, we performed a review of the City of Grand Prairie’s (City) operations to evaluate its capacity to administer the $3.2 million received under the Housing and Economic Recovery Act of 2008 and the American Recovery and Reinvestment Act of 2009 (Recovery Act). Specifically, our objective was to review and assess the City’s capacity and risks in the following…
January 05, 2010
Memorandum
#2010-FW-1803
The City of San Antonio, TX, Demonstrated Capacity to Administer Its Recovery Act Grant
As part of the Office of the Inspector General’s (OIG) directive to determine whether safeguards exist to ensure that American Recovery and Reinvestment Act of 2009 (Recovery Act) funds are used for their intended purposes, we conducted a capacity review of the City San Antonio, TX (City) operations. Our objective was to determine whether the City had the capacity to account for Recovery Act funds and the controls to ensure that it expends…
December 28, 2009
Memorandum
#2010-FW-1802
Dallas Housing Authority, Dallas, Texas, Demonstrated Capacity to Administer Its Recovery Act Capital Fund Formula Grant
As part of the Office of the Inspector General’s (OIG) directive to determine whether safeguards exist to ensure that American Recovery and Reinvestment Act of 2009 (Recovery Act) funds are used for their intended purposes, we audited the Dallas Housing Authority’s (Authority) Recovery Act Public Housing Capital Fund formula grant (grant). Our objective was to evaluate the Authority’s capacity in the areas of internal controls, eligibility,…
December 17, 2009
Report
#2010-FW-1001
The Texas Department of Housing and Community Affair’s Disaster Recovery Action Plan Needs Improvement
The U. S. Department of Housing and Urban Development’s Office of Inspector General (HUD OIG) audited the Housing and Urban Development (HUD) Community Development Block Grant (CDBG), Supplemental I and II Disaster Recovery program funds, administered by the Texas Department of Housing and Community Affairs (TDHCA). Specifically, we wanted to determine whether TDHCA administered the floodplain management program as required by federal, state,…
September 30, 2009
Report
#2009-FW-1016
The City of Fort Worth Needs to Strengthen Its Capacity to Adequately Administer Recovery Funding
The City of Fort Worth (City) is scheduled to receive $10.85 million in Recovery Act funding. The Department of Housing and Urban Development (HUD) Office of Inspector General (OIG) issued a memorandum on the City’s capacity to administer these funds. We reported the City had a history of failing to meet regulatory requirements in an efficient or timely manner. The City needs to strengthen its capacity to adequately administer recovery…
August 31, 2009
Memorandum
#2009-FW-1802
The Housing Authority of Travis County, Austin, Texas, Could Not Adequately Account For or Support Its Use of Federal Program Funds
We audited the Housing Authority of Travis County (Authority) due to several problem indicators including the U. S. Department of Housing and Urban Development’s (HUD) rejecting the Authority’s 2005 and 2006 audited financial statements and noting that the Authority’s 2007 financial statements contained $4.1 million in interprogram transfers and a negative $579,783 administrative fee reserve. Our objectives were to determine (1) whether the…
August 17, 2009
Report
#2009-FW-1015
Travis County Housing Authority, Austin, Texas, Lacks Capacity to Administer American Recovery and Reinvestment Act of 2009 Public Housing Capital Funds
The Department of Housing and Urban Development (DHUD) Office of Inspector General has issued a memorandum on the Travis County (Texas) Housing Authority’s (Authority) capacity to administer Recovery Act funds. The memorandum reports that the Authority lacks capacity to administer ARRA public housing capital funds. The OIG recommended that HUD increase monitoring and oversight of the Authority’s financial and program activities, and either…
August 17, 2009
Memorandum
#2009-FW-1801
The City of Houston, Texas, Did Not Adequately Monitor Its HOPWA Project Sponsors
We conducted an audit of the City of Houston’s (City) Housing Opportunities for Persons with AIDS (HOPWA) program, which is managed by its Housing and Community Development Department (Department), as part of our strategic plan and regional goals. Our objective was to determine whether the City and its project sponsors complied with U. S. Department of Housing and Urban Development (HUD) HOPWA regulations, requirements and its grant agreements.…
June 26, 2009
Report
#2009-FW-1011
Tarrant County Generally Administered Its Home Investment Partnerships Program Grants in Accordance with Requirements, Fort Worth, Texas
We selected the Tarrant County Community Development Division (Tarrant County) HOME Investment Partnerships Program (HOME) and Neighborhood Stabilization Program (NSP) for review because the U. S. Department of Housing and Urban Development's management expressed concerns about Tarrant County's HOME program. The objectives were to determine Tarrant County's (1) compliance with HOME regulatory requirements, (2) eligibility of HOME…
June 09, 2009
Report
#2009-FW-1009
Housing Authority of the City of El Paso, El Paso, Texas, Administered Its Housing Choice Voucher Program in Accordance with Requirement
As part of our strategic plan objective to assist the U. S. Department of Housing and Urban Development's (HUD) efforts to reduce rental assistance overpayments, we audited the Housing Authority of the City of El Paso's (Authority) Housing Choice Voucher program (program). The purpose of our audit was to determine whether the Authority properly administered its overall program. Specifically, we wanted to determine whether the Authority…
May 20, 2009
Report
#2009-FW-1008
The Owners of Stonerook Apartments Phase I and Phase II, Baytown, Texas, Violated Their Regulatory Agreements With HUD
We audited Stonebrook Apartments Phase I and Phase II (projects) to determine whether the projects' owners complied with the regulatory agreements and U. S. Department of Housing and Urban Development (HUD) regulations. Specifically, we wanted to determine whether the owners (1) made unauthorized distributions of project funds when the projects were in a non-surplus-cash position, (2) fully funded the tenant security deposit accounts, and (…
March 25, 2009
Report
#2009-FW-1007
Enterprise Home Ownership partners-Dallas, INC., Dallas, TX Achieved Program Objectives But Did Not Fully Comply With Certain Requirements
We audited the U. S. Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG), Supplemental II Disaster Recovery program funds, administered by the Texas Department of Housing and Community Affairs (TDHCA). Specifically, we wanted to determine whether TDHCA monitored its program management firm (the Firm) to ensure compliance with Federal and State regulations and to ensure costs reimbursed for the Housing…
February 17, 2009
Report
#2009-FW-1006
Allied Home Mortgage Capital Corporation, Houston, Texas, Did Not Fully Follow HUD's Branch Office Requirements
We reviewed Allied Home Mortgage Capital Corporation (Allied), a nonsupervised loan correspondent. The objective of the review was to determine the validity of a hotline complaint that Allied operated its branches in violation of U. S. Department of Housing and Urban Development (HUD) requirements.
The complaint was partially valid as Allied did not fully follow HUD's branch office requirements. Allied required branch managers to personally…
February 09, 2009
Report
#2009-FW-1005
The Texas Department of Housing and Community Affairs Properly Administered Supplemental I Disaster Recovery Program Funds
We audited the U. S. Department of Housing and Urban Development's (HUD) Community Development Block Grant (CDBG), Supplemental I Disaster Recovery program, administered by the Texas Department of Housing and Community Affairs (Department). We performed the audit as part of the Office of Inspector General's commitment to HUD to implement oversight of the Disaster Recovery funds to prevent fraud, waste, and abuse and duplication of…
January 13, 2009
Report
#2009-FW-1004
Housing Authority of the City of El Paso, El Paso, Texas, Did Not Follow Procurement and Other Requirements
Based on a congressional request, we performed an audit of the Housing Authority City of El Paso's (Authority) procurement process and board of commissioners (board) activities. Our objectives were to determine whether the Authority properly followed procurement requirements and whether the executive director was selected in accordance with applicable procedures.
The Authority did not follow its procurement policies or the U. S. Department…
December 23, 2008
Report
#2009-FW-1003
The Owner of Ebony Lake Healthcare Center, Brownsville, Texas, Violated Its Regulatory Agreement with HUD
As part of the Office of Inspector General's (OIG) annual audit plan and because of significant regulatory violations identified at another property owned by an entity related to Century Ebony Lake - GEAC, LLC (owner), we audited Ebony Lake Healthcare Center (project). Our objectives were to determine whether the project's owner (1) transferred funds from the project in violation of its regulatory agreement with the U. S. Department of…
November 24, 2008
Report
#2009-FW-1002
New Hampshire Housing Finance Authority Generally Administered Its Cost Allocation, Operating Reserves, and Technology Expenditures as Required
We completed our review of the New Hampshire Housing Finance Authority's (Authority) cost allocation, operating reserves, and technology expenditures. We initiated this survey at the request of the U.S. Department of Housing and Urban Development's (HUD) Office of Public Housing. Our objective was to determine whether the Authority properly allocated costs, maintained appropriate reserves, and managed its technology equipment and…
November 17, 2008
Report
#2009-BO-1003