The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, audited Midwest Mortgage Capital (Midwest). Our audit objectives were to determine whether Midwest followed HUD requirements for underwriting loans and performing its quality control program for single-family production. We concluded that Midwest did not properly underwrite 7 of the 29 defaulted loans reviewed. These loans had material underwriting…

We audited the Culver City Housing Agency’s (Agency) administration of its Section 8 Housing Choice Voucher program waiting list and housing assistance payment calculations. We initiated this review based upon information we received regarding waiting list administration and potential tenant eligibility issues. The Agency’s ongoing lease-up deficiency and lack of monitoring visits by the U. S. Department of Housing and Urban Development (HUD)…

We audited the City of Los Angeles Housing Department (City) as the result of problems noted during a prior audit involving HOME Investment Partnerships Program (HOME)-funded activities administered by the Community Redevelopment Agency of the City of Los Angeles (subrecipient), which was not adequately monitored by the City, compounded by concerns stemming from various newspaper articles related to the Marlton Square project, which included the…

The U.S. Department of Housing and Urban Development (HUD) Office of Inspector General audited the HOME Investment Partnerships (HOME) program of the City of Kansas City, Kansas (City). Our objective was to determine whether the City followed HUD requirements when establishing and managing HOME projects. We concluded that the City did not obtain adequate environmental reviews, improperly awarded HOME construction projects, improperly charged…

In response to requests from the U. S. Department of Housing and Urban Development (HUD) and Senator James Inhofe, we audited the property owner's application and the loan processing and underwriting of the HUD-insured mortgage loan to Greystone Apartments, Inc., for Cypress Ridge Apartments. Harry Mortgage Company, the lender, processed and recommended loan approval under the multifamily accelerated processing (MAP) program. The audit…

We conducted an audit of the City of Houston’s (City) Housing Opportunities for Persons with AIDS (HOPWA) program, which is managed by its Housing and Community Development Department (Department), as part of our strategic plan and regional goals. Our objective was to determine whether the City and its project sponsors complied with U. S. Department of Housing and Urban Development (HUD) HOPWA regulations, requirements and its grant agreements.…

As part of the our plan to review the Neighborhood Stabilization Program (program), we reviewed whether the U. S. Department of Housing and Urban Development’s (HUD) Disaster Recovery Grant Reporting system (DRGR) can collect program data at the level of detail necessary to adequately monitor the program. We limited the review to the program established by the Housing and Economic Recovery Act of 2008. However, HUD will also use DRGR for the…

HUD-OIG audited the Community Development Block Grant (CDBG) program administered by Miami-Dade County, Florida (County). The objective of the audit was to determine whether the County administered its CDBG program in accordance with applicable U.S. Department of Housing and Urban Development (HUD) requirements. The County did not administer its CDBG program in accordance with applicable HUD requirements. It did not comply with HUD requirements…

We completed a corrective action verification of HUD’s actions in implementing portions of Audit Memorandum 98-AO-219-1804, issued September 24, 1998; Upfront Grant for Ridgecrest Heights Apartments, CEMI-Ridgecrest, Inc., Washington, DC. The specific objective of this corrective action verification review was to determine if HUD ensured the repayment of excess proceeds from the sale of townhomes located at Ridgecrest Heights Apartments. HUD…

HUD-OIG audited the Community Development Block Grant (CDBG) program administered by Miami-Dade County, Florida (County). The objective of the audit was to determine whether the County administered its CDBG program in accordance with applicable U.S. Department of Housing and Urban Development (HUD) requirements. The County did not administer its CDBG program in accordance with applicable HUD requirements. It did not comply with HUD requirements…

We performed a corrective action verification of HUD's actions in implementing recommendation 1F from our audit of the Housing Authority of Maricopa County's Mixed Finance Development Activities (Rose Terrace and Maricopa Revitalization), Audit Report 2005-LA-1002, issued March 14, 2005. The purpose of the corrective action verification was to determine whether HUD officials appropriately closed audit recommendation 1F in accordance…

We audited the State of Mississippi's (State) administration of the $5.058 billion in Community Development Block Grant (CDBG) disaster recovery funds provided to the State in the aftermath of Hurricane Katrina. The State allocated $2.2 billion to help homeowners in southern Mississippi recover from Hurricane Katrina. During our audit on grant eligibility, we identified a few possible duplicate payments when reviewing the State's…

We audited the Chattanooga Housing Authority's (Authority) financial operations after the U.S. Department of Housing and Urban Development (HUD), Office of Public Housing, Tennessee State Office, informed us of the Authority's deteriorating financial condition. We began with a review of the Authority's development activities but expanded the review based on our survey results. The Authority, with the exception of $49,316 in…

We selected the Tarrant County Community Development Division (Tarrant County) HOME Investment Partnerships Program (HOME) and Neighborhood Stabilization Program (NSP) for review because the U. S. Department of Housing and Urban Development's management expressed concerns about Tarrant County's HOME program. The objectives were to determine Tarrant County's (1) compliance with HOME regulatory requirements, (2) eligibility of HOME…

We completed an evaluation of HUD’s management of its Workers’ Compensation Program (WCP).  Our primary objectives were to determine whether HUD’s contractor, Lifecare Management Partners (Lifecare) of Alexandria, VA, managed the program in accordance with its contract terms and identify opportunities to improve program policy and procedures.  We also wanted to determine the level of program noncompliance and potential fraud among HUD…

We audited the City of Reading's (City) asset control area program as part of a nationwide audit of the U.S. Department of Housing and Urban Development's (HUD) monitoring of program participants. Our objective was to determine whether the City administered its asset control area program in compliance with HUD requirements. We focused our review on whether the City complied with specific requirements in its asset control area agreement…

At the request of the Office of Public and Indian Housing (PIH), we performed a limited review of a random sample of 112 March and April 2009 Disaster Housing Assistance Program (DHAP) payments for Hurricane Katrina and Hurricane Rita evacuees. The objective was to verify whether the authorized tenants lived in the residences in March and April 2009. Testing identified 20 instances of potentially ineligible payments totaling $9,478 and some…

We completed the twelfth report in our ongoing audits of the Lower Manhattan Development Corporation's (the auditee) administration of the Community Development Block Grant Disaster Recovery Assistance funds provided to the State of New York in the aftermath of the September 11, 2001, terrorist attacks on the World Trade Center in New York City. During our audit period, April 1 through September 30, 2008, the auditee disbursed approximately…

The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General audited HUD's management of human resources. We initiated the audit based on our annual audit plan and our strategic plan to help HUD resolve its major management challenges. Our objective was to determine whether HUD implemented a process and methodology to determine when to contract out for services or when to keep the services in house. Our…

We completed an audit of the City of Rome, New York's (City), administration of its economic development activity known as General Cable under its Community Development Block Grant (CDBG) program. The objectives of our audit were to determine whether the City (1) administered this economic development activity effectively, efficiently, and economically in accordance with applicable U.S. Department of Housing and Urban Development (HUD)…