As part of our mission to safeguard HUD’s programs from fraud, waste, and abuse, and to identify opportunities for HUD programs to progress and succeed, we selected New Jersey for a review of potential improper payments.   Our audit objective was to determine whether New Jersey made improper non-Federal match activity payments.  We also assessed whether the Office of Community Planning and Development’s Office of Disaster Recovery (CPD…

We audited the U.S Department of Housing and Urban Development (HUD) National Servicing Center’s (NSC) tracking and collection of FHA partial claims.  We initiated the audit to assess HUD’s implementation of the corrective actions from HUD OIG audit report 2016-KC-0001, HUD Did Not Collect an Estimated 1,361 Partial Claims Upon Termination of Their Related Federal Housing Administration (FHA)-Insured Mortgages; however, we determined based…

HUD OIG is committed to eliminating fraud, waste, and abuse.

We audited Solis Gardens Apartments’ management of its HUD-insured Section 207/223(f) multifamily property as part of our annual work plan.  The owner of Solis Garden Apartments manages 62 units in accordance with HUD requirements and its regulatory agreement which includes restrictions on the use of project funds and assets.  We selected Solis Gardens Apartments for an audit based on risk indicators, such as surplus cash deficiencies…

We identified a significant increase in the amount of funds drawn by HOME Investment Partnerships Program (HOME) and HOME American Rescue Plan (ARP) grantees near the time of the January 2025, hold in Federal funds, which increased the risk that the funds may have been drawn prematurely, without support, or used improperly.  Therefore, our audit objective was to identify if HOME and HOME ARP draws made near the time of the hold in federal…

A letter from Acting Inspector General Brian D. Harrison to grantees.

A letter from Acting Inspector General Brian D. Harrison to property owners and managers.

A letter from Acting Inspector General Brian D. Harrison to Public Housing Authorities.

We assessed public housing agencies’ (PHA) management of the occupancy of public housing units.  Our audit objective was to (1) assess the occupancy of public housing units, and (2) determine whether HUD had adequate oversight of PHAs’ occupancy, particularly PHAs’ management of vacant units.We found PHAs had occupancy rates below HUD’s optimal level or a high number of long-term vacant units.  Further, although HUD monitors PHAs’…

HUD OIG has released its latest Semiannual Report to Congress, highlighting oversight work conducted from October 1, 2025, through March 31, 2026.The report reflects HUD OIG’s continued efforts to strengthen HUD programs, protect taxpayer dollars, and promote accountability through investigations, audits, evaluations, and oversight initiatives across the country.Highlights from the reporting period include:• $43 million in audit collections•…

We audited the U.S. Department of Housing and Urban Development (HUD), Federal Housing Administration (FHA) Claims Without Conveyance of Title (CWCOT) program.  We selected this review to assist HUD in recovering improper payments and to reduce the risk of losses to the FHA insurance fund. The objective of our audit was to assess whether HUD is appropriately demanding and collecting improper payments identified for CWCOT loans by its…

Our office is currently conducting three audits of crime prevention and eligibility determinations at Public Housing Authorities (PHA) in Washington, DC; Chicago; and Los Angeles.  The objective of our audits is to (1) determine whether the Authority complied with HUD’s and its own requirements for verifying eligibility of individuals for HUD-assisted housing based on criminal activity, citizenship, and immigration status, and (2) evaluate…

The U.S. Department of Housing and Urban Development (HUD) Office of Inspector General (OIG) conducted an evaluation of the operational effectiveness of information technology (IT) security controls for the HUDUSER system, which is operated by HUD’s Office of Policy Development and Research (PD&R).  The OIG identified four significant weaknesses involving website security, underscoring the need to strengthen technical security controls…

We conducted an audit on the effectiveness of the U.S. Department of Housing and Urban Development’s (HUD) Home Equity Conversion Mortgage (HECM) program’s Life Expectancy Set Asides (LESA).  The LESA is a set aside portion of the HECM mortgage that makes property tax, hazard insurance, and flood insurance payments on behalf of certain financially vulnerable borrowers.  While not guaranteed, the LESA funds are intended to last for the…

As part of our mission to safeguard the U.S. Department of Housing and Urban Development’s (HUD) programs from fraud, waste, and abuse, and to identify opportunities for HUD programs to progress and succeed, we selected Colorado for a review of potential improper payments.  Our audit objective was to determine whether Colorado made improper non-Federal match activity payments.  We also assessed whether the Office of Community Planning…

We found that the photovoltaic systems (PV) and water tanks installed in participant’s homes had deficiencies.  Such deficiencies included inverters and batteries with signs of rust; water intrusion that could lead to electrical shorts; electrical conduits that were degrading due to direct exposure to the sun; electrical conduits with water; and water tanks that were leaking, overflowing, or both.  Based on statistical projections, at…

We audited the U.S. Department of Housing and Urban Development (HUD), Office of Residential Care Facilities’ (ORCF), oversight of Section 232 residential care facilities’ mortgage insurance program.  We performed this audit because HUD-insured residential care facility loan defaults were rising.  As of June 2024, 167 of the 3,670 HUD-insured Section 232 borrowers, or nearly 5 percent, defaulted on their mortgages.  These 167…

We audited the Government National Mortgage Association’s (Ginnie Mae) management of its portfolio of federally guaranteed mortgage-backed securities (MBS).  We initiated this audit because of our internal monitoring of the Ginnie Mae portfolio as well as the issuance of a Financial Stability Oversight Council report in 2024 on the rising risks presented by nonbank mortgage companies.  Our audit objective was to assess Ginnie Mae's…

Fraud poses a significant risk to the integrity of federal programs and erodes public trust in government.  For the U.S. Department of Housing and Urban Development’s (HUD) disaster recovery programs, fraud results in communities and individuals not receiving needed assistance to recover from and mitigate future disasters.  Departments are required by law to develop and maintain governance structures, controls, and processes to…

In August 2024, we issued an audit report on the California Department of Housing and Community Development’s (HCD) fraud risk management practices, finding that HCD was not adequately prepared to prevent, detect, and respond to fraud due to the lack of focus it placed on fraud risks and establishing a robust fraud risk management framework for the Coronavirus Aid, Relief, and Economic Security Act (CARES) Act funding for the Emergency Solutions…