We audited the Flint Housing Commission’s American Recovery and Reinvestment Act of 2009 Public Housing Capital Fund formula grant based upon our analysis of risk factors relating to the housing agencies in Region 5’s  jurisdiction.  Our objective was to determine whether the Commission administered its grant in accordance with Recovery Act, the U.S. Department of Housing and Urban Development’s (HUD), and its own requirements. …

We completed an evaluation of the U.S. Department of Housing and Urban Development’s (HUD) property inventory system.  The evaluation was performed at the request of Office of Inspector General (OIG) management due to long standing issues with HUD’s property inventory system.  Our objectives were to determine why HUD did not have a properly working property inventory system in place and the status of procuring a new property inventory…

In accordance with our regional plan to review public housing programs and because of weaknesses identified by the U.S. Department of Housing and Urban Development’s (HUD) Office of Public Housing, we reviewed the Malakoff Housing Authority, Malakoff, TX.  Our objective was to determine whether the Authority’s controls were sufficient to ensure that it administered its HUD Public Housing programs in accordance with regulations and guidance…

We audited the City of Auburn, NY’s Community Development Block Grant (CDBG) program based on an Office of Inspector General risk analysis that considered the amount of funding the City had available to expend.  The objectives of the audit were to determine whether the City had (1) established and implemented the necessary controls to ensure that program activities were adequately documented and administered in accordance with U.S.…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited the Adams County Housing Authority based on concerns that the Authority did not follow HUD regulations in the use of its disposition sales proceeds.  The objectives of our audit were to determine whether the Authority placed the required number of Section 8 voucher holders into its Terrace Gardens units and appropriately spent its disposition…

In accordance with our goal to review American Recovery and Reinvestment Act of 2009 funds, we reviewed the City of New Orleans’ Homelessness Prevention and Rapid Re-Housing Program.  Our objective was to determine whether the City had adequate financial and programmatic controls to meet Program requirements. The City did not have adequate financial and programmatic controls over its Program to ensure that it expended and reported funds in…

We completed a corrective action verification of a recommendation made to the U.S. Department of Housing and Urban Development’s (HUD) Office of Single Family Program Department pertaining to our underwriting review of 15 Federal Housing Administration (FHA) lenders in Audit Memorandum 2011-CF-1801, issued March 2, 2011.  The purpose of the corrective action verification was to determine whether the Office of Housing appropriately…

In accordance with our regional plan to review public housing programs and because of weaknesses identified by the U.S. Department of Housing and Urban Development (HUD), HUD’s Office of the Inspector General (OIG) reviewed the public housing programs of the Kenner Housing Authority in Kenner, LA.  Our overall objective was to determine whether the Authority administered its public housing programs in accordance with regulations and…

The U.S. Department of Housing and Urban Development - Office of Inspector General audited HUD’s Housing Choice Voucher program based on an internal audit suggestion.  A 2007 HUD-OIG audit report (2007-FW-0001) indicated problems with oversubsidization in the program, and since then, the Office of Inspector General had conducted only a few external audits to help substantiate whether oversubsidization continued to be a problem.  Our…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), conducted a limited review of HUD’s oversight of loans underwritten by HUD-approved Federal Housing Administration (FHA) lenders.  We conducted the internal review as part of OIG’s annual audit plan, prompted by four recent OIG external lender audits reporting that the lenders allowed prohibited restrictive covenant agreements.  The…

We initiated a review of the City of Hawthorne’s Community Development Block Grant (CDBG) and CDBG-Recovery Act (CDBG-R) program, based on a request by the U.S. Department of Housing and Urban Development’s (HUD) Los Angeles Office of Community Planning and Development.  Our objective was to determine whether the City adequately supported its salary and program administrative cost allocations to the CDBG and CDBG-R programs in accordance…

We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of its Home Equity Conversion Mortgage (HECM) program and found that 33 borrowers had more than 1 loan under the program.  Having multiple loans violated program requirements because HUD requires borrowers to reside in the mortgaged residence as their principal residence and borrowers may not have more than one principal residence at the same time.  We…

In accordance with our regional plan to review public housing programs and because of weaknesses identified by the U.S. Department of Housing and Urban Development’s (HUD) Office of Public Housing, we reviewed the City of Brackettville Housing Authority, Brackettville, TX.  Our objective was to determine whether the Authority operated its public housing and related grant programs in accordance with HUD requirements.  The Authority’s…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited HUD’s Office of Single Family Housing to determine whether lenders contacted all borrowers on each Federal Housing Administration (FHA) loan before proceeding to claim.  We initiated this nationwide audit because we noted instances in which the lender collected financial information from only one of the borrowers and showed no efforts to contact…

We audited Community Advocates’ Supportive Housing Program and American Recovery and Reinvestment Act Homelessness Prevention and Rapid Re-Housing Program grants.  We selected Community Advocates based on a hotline complaint alleging misuse of Program grant funds.  Our objective was to determine whether Community Advocates properly administered its Program and Recovery Act grants in accordance with U.S. Department of Housing and Urban…

We audited Independent Bank, a Federal Housing Administration (FHA) supervised direct endorsement lender.  We selected Independent Bank for review based on its overall compare ratio of nearly 200 percent for loans originated in our jurisdiction for a 2-year FHA performance period. The audit was part of the activities in our fiscal year 2013 audit plan.  Our audit objectives were to determine whether (1) Independent Bank’s quality…

We audited the State of Michigan’s Neighborhood Stabilization Program under the American Recovery and Reinvestment Act of 2009 as part of the activities in our fiscal year 2013 annual audit plan.  We selected the State’s Program based upon our designation of the Program as high risk.  Further, we received an anonymous complaint regarding the State’s Program.  Our objectives were to determine whether the Michigan State Housing…

We audited Lighthouse Inn, an assisted living facility located in Pompano Beach, FL.  In April 2008, the U.S. Department of Housing and Urban Development (HUD) insured the $5.1 million mortgage on the property under Section 232 of the National Housing Act.  In September 2010, the facility defaulted on the mortgage loan.  Our overall audit objective was to determine whether the owner of Lighthouse Inn complied with the executed…

We audited the City of Hawthorne because of a corrective action verification audit done by the Office of Inspector General (OIG) that identified $840,741 in HOME Investment Partnerships Program funds that were transferred to the Section 8 program between 2005 and 2006 (2013-LA-0802).  The objectives of the audit were to determine (1) the eligibility of $840,741 in 2005 and 2006 HOME program transfers to the Section 8 program, (2) whether…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited HUD’s Office of Single Family Housing to determine whether it had effective controls in place to ensure that lenders reported default information on Federal Housing Administration (FHA)-insured loans accurately and in a timely manner.  We initiated this audit after observing delayed reporting of default information on loan histories. We found…