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…

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…

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…

We audited Wells Fargo Mortgage (Wells Fargo) as part of our annual audit plan objective of improving the integrity of single family insurance programs. Our objective was to determine whether Wells Fargo complied with U. S. Department of Housing and Urban Development (HUD) origination requirements for the Home Equity Conversion Mortgage program, commonly known as a reverse mortgage. Wells Fargo generally complied with HUD's reverse mortgage…

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 Dallas Housing Authority's (Authority) Housing Choice Voucher program (voucher program). Our objective was to determine whether the Authority properly administered its overall voucher program. The Authority acknowledged its longstanding weaknesses, as previously…

We reviewed Senior Reverse Mortgage Services, Incorporated (originator), a home equity conversion mortgage (HECM) originator. The originator originated loans for one of the largest lenders in Texas, Financial Freedom Senior Funding Corporation. Our objective was to determine whether the originator complied with U.S. Department of Housing and Urban Development (HUD) regulations and adequately counseled borrowers and disclosed costs. Generally,…

As part of the Office of Inspector General's (OIG) annual audit plan, we audited Century Mission Oaks (project). Our objectives were to determine whether the project's owner-manager, Century Mission Oaks GEAC, LLC (owner), complied with the regulatory agreement with the U. S. Department of Housing and Urban Development (HUD) during fiscal years 2005 and 2006. Specifically, we wanted to determine whether the owner (1) adequately…

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 Dallas Housing Authority's (Authority) financial management of its Housing Choice Voucher program (voucher program). Our objective was to determine whether the Authority had the necessary financial controls in place to operate its voucher program in an efficient…

We conducted a review of the City of Dallas' (City) Housing Opportunities for Persons with AIDS (HOPWA) grant. Our objectives were to determine whether the City and its program sponsors provided rent, mortgage, and utility assistance to persons who met program criteria and whether the 2005 and 2006 competitive grants provided transitional and replacement housing. Generally, the City complied with program requirements to ensure that it and…

We audited Oneida Housing Authority (Authority) to determine whether the Authority calculated program income for NAHASDA-assisted 1937 Act properties in accordance with applicable U.S. Department of Housing and Urban Development (HUD) guidance, regulations, and requirements and to observe uses of revenue from NAHASDA-assisted 1937 Act properties. The Authority failed to track Block Grant rehabilitation or capital expenses for each property and…

Based on a hotline complaint, we audited the Housing Authority of the City of McKinney (Authority). Our objective was to determine whether the Authority's transactions with its affiliated nonprofit, the McKinney Housing Opportunity Corporation (Corporation), complied with U.S. Department of Housing and Urban Development (HUD) requirements. In violation of its annual contributions contract, the Authority inappropriately provided $915,487 in…

We audited the Community Development Corporation of Brownsville, Inc. (Corporation), at the request of the U. S. Department of Housing and Urban Development's (HUD) San Antonio Director of Community Planning and Development. Our objective was to determine whether the Corporation correctly charged administrative costs to its various federal funding sources. We expanded our objective to also determine whether the Corporation used housing…

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 portability features of the Dallas Housing Authority's (Authority) Housing Choice Voucher program. Our objective was to determine whether the Authority administered portability in accordance with HUD requirements. The Authority mismanaged its portable vouchers…

We audited American Property Financial (American), a nonsupervised loan correspondent approved to originate Federal Housing Administration mortgage loans under the U.S. Department of Housing and Urban Development's (HUD) Single Family Direct Endorsement Program. American originated 83 Federal Housing Administration loans between February 1, 2002, and January 31, 2004. As of February 23, 2004, 14 of the 83 loans were in default status. Synergy…