The State of Texas Did Not Follow Requirements for its Infrastructure and Revitalization Contracts Funded With DCBG Disaster Recovery Program Funds
We audited the U. S. Department of Housing and Urban Development’s (HUD) Community Development Block Grant (CDBG) 2008 Disaster Recovery assistance for Hurricane Ike and other disasters, administered by the Texas Department of Rural Affairs (the State). Our objective was to determine whether the State administered HUD’s Disaster Recovery funds used for infrastructure and revitalization contracts in compliance with the supplemental…
March 06, 2012
Report
#2012-FW-1005
The East St. Louis Housing Authority Did Not Properly Manage or Report on Recovery Act Capital Funds
The U.S. Department of Housing and Urban Development, Office of Inspector General audited the East St. Louis Housing Authority’s American Recovery and Reinvestment Act of 2009 Public Housing Capital Fund program. Our audit objective was to determine whether the Authority (1) complied with applicable procurement requirements and properly managed its Recovery Act contracts, (2) properly drew down and expended funds for eligible activities, and (3…
March 01, 2012
Report
#2012-KC-1002
The State of Wisconsin’s Department of Commerce Needs To Improve Its Oversight of Its Lead-Based Paint Hazard Control Recovery Act Grant
The U.S. Department of Housing and Urban Development, Office of Inspector General audited the State of Wisconsin’s Department of Commerce’s Lead-Based Paint Hazard Control program under the American Recovery and Reinvestment Act of 2009. The audit was part of the activities in our fiscal year 2011 annual audit plan. We selected the State for review based on a citizen’s complaint forwarded to our office from the U.S. Department of Commerce’s…
February 29, 2012
Report
#2012-CH-1005
PrimeLending Mortgage, LLP, Plano, TX, Did Not Always Follow HUD-FHA Underwriting Requirements for 12 of 20 Loans Reviewe
We performed an audit of PrimeLending, A PlainsCaptial Company, located in Dallas, TX, a Federal Housing Administration (FHA) direct endorsement lender. We selected PrimeLending for audit because of its high default rate in the Houston, Dallas, and Fort Worth, TX, offices as compared to the average default rate for all FHA loans in those offices. Our objective was to determine whether PrimeLending complied with U. S. Department of Housing and…
February 27, 2012
Report
#2012-FW-1004
The State of Indiana’s Administrator Lacked Adequate Controls Over the State’s HOME Investment Partnerships Program Regarding Community Housing Development Organizations’ Activities and Income
We audited the State of Indiana’s HOME Investment Partnerships Program. The audit was part of the activities in our fiscal year 2011 annual audit plan. We selected the State based upon our analysis of risk factors relating to Program grantees in Region V’s (see footnote 1) jurisdiction. Our objectives were to determine whether the Indiana Housing and Community Development Authority, the administrator of the State’s Program, complied with the…
February 23, 2012
Report
#2012-CH-1004
The Springfield Housing Authority, Springfield, IL, Needs To Improve Its American Recovery and Reinvestment Act Contract Administration Procedures
We audited the Springfield Housing Authority’s American Recovery and Reinvestment Act of 2009 Public Housing Capital Fund Stimulus formula grant. The audit was part of the activities in our fiscal year 2011 annual audit plan. We selected the Authority based upon our analysis of risk factors relating to the housing agencies in Region V’s jurisdiction. Our objective was to determine whether the Authority administered its grant in accordance with…
February 22, 2012
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#2012-CH-1003
Opelousas Housing Authority, Opelousas, LA, Did Not Always Comply With Recovery Act and Federal Obligation, Procurement, and Reporting Requirements
The U.S. Department of Housing and Urban Development, Office of Inspector General initiated an audit of the Opelousas Housing Authority’s Public Housing Capital Fund Stimulus Recovery Act-funded grant as part of our annual audit plan. Our objective was to determine whether the Authority (1) followed the requirements of the Recovery and Reinvestment Act of 2009 when obligating its Recovery Act capital funds and when procuring contracts for goods…
February 22, 2012
Report
#2012-AO-1001
The City of Syracuse, NY, Did Not Always Administer Its Economic Development Initiative Program in Accordance With HUD Requirements
We audited the City of Syracuse, NY, pertaining to its Economic Development Initiative (EDI)-Special Project grants. The audit objective was to determine whether City officials were administering EDI Special Project grants effectively, efficiently, and economically in accordance with applicable rules and regulations. Specifically, we wanted to determine whether City officials expended EDI funds for eligible activities that were fully supported…
February 20, 2012
Report
#2012-NY-1007
HUD Controls Did Not Always Ensure That Home Equity Conversion Mortgage Loan Borrowers Complied With Program Residency Requirements
We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of its Home Equity Conversion Mortgage (HECM) program based on our annual audit plan and our strategic goal to improve the integrity of HUD’s single-family programs. This is the first of two reports that we plan to issue on HUD’s oversight of the program. Our objective was to determine whether HUD’s controls effectively ensured that HECM loan borrowers complied…
February 08, 2012
Report
#2012-PH-0004
MLD Mortgage, Inc., Florham Park, NJ, Did Not Always Comply With HUD-FHA Loan Origination and Quality Control Requirements
We audited Mortgage Lending Direct, Inc. (MLD), a nonsupervised lender (see footnote -1)located in Florham Park, NJ, in support of the U.S. Department of Housing and Urban Development (HUD), Office of the Inspector General’s (OIG) goal of improving the integrity of the single-family insurance program. We selected MLD for audit because its 8.88 percent default rate for Federal Housing Administration (FHA)-insured single-family loans with…
February 05, 2012
Report
#2012-NY-1006
The City of Newark, NJ, Had Weaknesses in the Administration of Its Homelessness Prevention and Rapid Re-Housing Program
We audited the City of Newark, NJ’s Homelessnes Prevention and Rapid Re-Housing Program (HPRP) in support of the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General’s (OIG) goal to review the expenditure of American Recovery and Reinvestment Act funds and contribute to improving HUD’s execution and accoutability of fiscal responsibilites. The audit objective was to determine whether City of Newark officials…
January 26, 2012
Report
#2012-NY-1005
Metlife Bank's Scottsdale, AZ, Branch Office Did Not Follow FHA-Insured Loan Underwriting and Quality Control Requirements
We audited the Federal Housing Administration (FHA)-insured loan process at MetLife Bank’s (lender) branch in Scottsdale, AZ, to determine whether the lender underwrote FHA-insured loans and implemented a quality control plan in accordance with U.S. Department of Housing and Urban Development (HUD) requirements. We selected the lender because it had an FHA default rate of 7.41 percent for loans underwritten in Arizona between April 1, 2009, and…
January 25, 2012
Report
#2012-LA-1004
Second Northwest Cooperative Homes Association, Washington, DC, Did Not Identify and Remit Excess Income to HUD
We audited the Second Northwest Cooperative Homes Association’s administration of the U.S. Department of Housing and Urban Development’s (HUD) Section 236 program based on a hotline complaint. Our audit objective was to determine if the Association properly identified and remitted excess income to HUD according to its regulatory agreement and whether it hired staff according to applicable HUD regulations. We found that the Association did not…
January 25, 2012
Report
#2012-PH-1005
The Saginaw Housing Commission, Saginaw, MI, Did Not Administer Its Grant in Accordance With Recovery Act, HUD’s, and Its Requirements
We audited the Saginaw Housing Commission’s American Recovery and Reinvestment Act of 2009 Public Housing Capital Fund Stimulus formula grant. The audit was part of the activities in our fiscal year 2011 annual audit plan. We selected the Commission based upon our previous audits of the Commission’s use of Federal funds and a request to perform a comprehensive review of its programs from the U.S. Department of Housing and Urban Development’s (…
January 25, 2012
Report
#2012-CH-1002
The Shelby County, TN, Housing Authority Mismanaged Its HUD-Funded Programs
We audited the Shelby County Housing Authority in Memphis, TN, based upon an audit request from the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General for Investigation. The request included many areas of concern for both public housing operations and Section 8 Housing Choice Voucher program administration. Our objective was to determine whether the Authority complied with HUD requirements for administering its…
January 25, 2012
Report
#2012-AT-1007
The Gallia Metropolitan Housing Authority, Bidwell, OH, Did Not Always Administer Its Grant in Accordance with Recovery Act and HUD Requirements
We audited the Gallia Metropolitan Housing Authority’s American Recovery and Reinvestment Act of 2009 Public Housing Capital Fund Stimulus (formula) grant. The audit was part of the activities in our fiscal year 2011 annual audit plan. We selected the Authority based upon our analysis of risk factors relating to the housing agencies in Region V’s (see footnote 1) jurisdiction and a request by the U.S. Department of Housing and Urban…
January 25, 2012
Report
#2012-CH-1001
The Housing Authority of the City of Sparta, GA, Did Not Maintain Adequate Control Over Its Federal Funds
January 23, 2012
Report
#2012-AT-1006
John Calvin Manor Violated Its Regulatory and Loan Agreements With HUD and Inappropriately Made Salary Payments to Its Board President
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General
audited John Calvin Manor of Lee’s Summit, MO, in response to a request from HUD’s Office of Multifamily Housing in Kansas City, KS. Our audit objective was to determine whether the property violated its regulatory and loan agreement with HUD.
The property violated its regulatory and loan agreements with HUD by improperly spending restricted funds,…
January 19, 2012
Report
#2012-KC-1001
Luzerne County, PA, Generally Administered Its Community Development Block Grant Recovery Act Funds According to Applicable Requirements
We audited Luzerne County, PA's administration of its Community Development Block Grant funds that it received under the American Recovery and Reinvestment Act of 2009. We selected the County for an audit because we received a complaint alleging that the County may have misappropriated Block Grant funds and because of our mandate to audit Recovery Act activities. Our audit objective was to determine whether the County obligated, expended…
January 12, 2012
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#2012-PH-1004
HUD Approved Multifamily Accelerated Processing Program Lenders as Required but Did Not Adequately Select Lenders to Monitor
We audited the U.S. Department of Housing and Urban Development’s (HUD) monitoring of its Multifamily Accelerated Processing program lenders. The audit was performed based on a hotline complaint and the Office of Inspector General’s annual audit and strategic plan to help HUD improve its fiscal responsibilities. The objective of the audit was to determine whether HUD adequately approved and selected program lenders to monitor.
HUD generally…
January 11, 2012
Report
#2012-PH-0003