Require Majestic Management to reimburse the appropriate projects their portion of $231,091 for work not completed or overbilled.

Reimburse the appropriate projects their portion of $11,184 that it charged for ineligible items.

Verify all management fees charged to the projects from 2013 through 2015 were appropriate.

Determine the eligibility of the $537,773 disbursed for the Ciudad de Ensueño project and reevaluate the feasibility of the activity. (Footnote 9) Total disbursements of $538,973 were adjusted to consider $1,200 questioned in recommendation 1F. The Municipality must reimburse its HOME program from non-Federal funds if HUD determines the activity to have been terminated.

Complete the implementation of the new accounting system and ensure it tracks program funds to a level that supports compliance with HUD requirements.

Require lenders to obtain the borrowers’ consent to verify the existence of delinquent Federal taxes with the IRS during loan origination and deny any applicant with delinquent Federal tax debt and no payment plan or a noncompliant payment plan or an applicant refusing to provide consent from receiving FHA insurance to put at least $6.1 billion to better use by avoiding potential future costs to the FHA insurance fund.StatusAs of January 2026,…

Implement a software asset management capability for software and operating systems to ensure that software executes only from the authorized software inventory and all unauthorized software is blocked from executing on HUD's network.StatusHUD previously reported that it was implementing a software management tool with an expected implementation date of quarter 2 of FY 2025; however, between quarter 2 and 3 of FY 2025, HUD personnel has stated…

Implement multifactor authentication mechanisms for all nonprivileged users who access information systems that process, store, or transmit PII.StatusThe Office of the Chief Information Officer reported that it has implemented a new software security solution to implement multifactor authentication, starting with a pilot on 15 FHA systems.  In October 2024, HUD received additional funds through the Technology Modernization Fund for this…

Implement multifactor authentication mechanisms for all privileged users who access information systems that process, store, or transmit PII.StatusThe Office of the Chief Information Officer reported that it has implemented a new software security solution to implement multifactor authentication, starting with a pilot on 15 FHA systems.  In October 2024, HUD received additional funds through the Technology Modernization Fund for this…

A change control protocol for changes in programs, policies, existing controls, and source documents, including impact assessments and approvals.Cross-functional review involving the policy, program, accounting, financial reporting, and compliance teams before any changes are finalized.Documentation of rationale and expected financial impact for each change.Training and  awareness for management on the importance of following the governance…

We recommend that the Deputy Assistant Secretary for Grant Programs instruct the Newark, NJ, field office to require Jersey City to provide documentation to support the fair market value of the property at the time of disposition. If documentation cannot be provided, the grantee should be required to reimburse $503,550 to its CDBG line of credit from non-Federal funds. If documentation can be provided, the grantee should be required to…

We recommend that the Director of the Office of Block Grant Assistance require the Texas GLO to review Harris County’s Housing Reimbursement Program policies, including assistance prioritization, to ensure compliance with the Texas GLO’s action plan and amendments. This would include the Texas GLO analyzing the County’s project pipeline to determine whether changes are warranted to ensure that those most in need are prioritized to receive…

We recommend that HUD’s Deputy Assistant Secretary for Public Housing and Voucher Programs conduct additional outreach efforts to educate tenants and PHAs on their rights and responsibilities related to requests for reasonable accommodation, including technical assistance, webinars, and external communications to inform PHAs about their responsibilities and how to evaluate requests for reasonable accommodation, and help families understand…

We recommend that the Director of the Office of Block Grant Assistance require the Texas GLO to ensure that Harris County obtains adequate training for its program staff and that the staff continuously demonstrates their understanding of and competence to operate Harris County’s programs within applicable requirements. This would include ensuring that Harris County takes appropriate steps to remedy situations where staff are not operating the…

HUD OCIO should demonstrate that it can implement its defined security responses if a baseline configuration is changed without authorization. This can be shown by either a response to a real incident if one happens or through a testing exercise if there are no applicable incidents (IG FISMA metric 23).

Develop and implement adequate procedures to ensure that confirmed EBLL cases, unconfirmed EBLL cases, and environmental investigations are reported to HUD.

Develop and implement adequate procedures and controls to ensure that environmental investigations are completed when required.

Deobligate the 101 program obligations totaling $1,967,991.45 identified for deobligation during the fiscal year 2024 OOR that had not been deobligated as of February 28, 2025.

The OIG has determined that the contents of this recommendation would not be appropriate for public disclosure and has therefore limited its distribution to selected officials.

Include lenders and servicers in the fraud risk identification process and communicate the fraud risks and schemes identified for the Single Family Housing program to relevant stakeholders, including relevant HUD program and support staff, lenders, and servicers.