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The City of Chicago’s Department of Public Health, Chicago, IL, Did Not Administer Its Lead Hazard Reduction Demonstration Grant Program in Accordance With HUD’s and Its Own Requirements
We audited the City of Chicago’s Department of Public Health’s (Department) Lead Hazard Reduction Demonstration Grant Program based on our analysis of the U.S. Department of Housing and Urban Development’s (HUD) Office of Lead Hazard Control and Healthy Homes grantees in Region 5’s jurisdiction. Our audit objective was to determine whether the Department administered the Program in accordance with HUD’s and its own requirements.
The…
September 30, 2018
Report
#2018-CH-1010
Majestic Management, LLC, St. Louis, MO, a Management Agent for the East St. Louis Housing Authority, Mismanaged Its Public Housing Program
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited Majestic Management, LLC’s management agent activities for the public housing program at the East St. Louis Housing Authority. Our objective was to determine whether Majestic Management made only eligible and supported payments for payroll, complied with procurement requirements, and properly performed initial tenant certifications and…
September 26, 2017
Report
#2017-KC-1003
MB Financial Bank, Rosemont, IL, Did Not Always Follow HUD’s Underwriting Requirements but Generally Complied With Quality Control Requirements
We audited MB Financial Bank, a Federal Housing Administration (FHA)-approved direct endorsement lender, as part of our efforts to protect the integrity of the U.S. Department of Housing and Urban Development’s (HUD) single-family housing mortgage insurance programs. We selected MB Financial for review based on an analysis of underwriting and default data maintained by HUD. Our objective was to determine whether MB Financial followed…
September 20, 2017
Report
#2017-NY-1011
Alpine First Preston Joint Venture II, LLC, Alpine, UT, Did Not Always Comply With Its Contract With HUD and Its Own Requirements for the Marketing and Sale of HUD-Owned Properties in the State of IL
We audited Alpine First Preston Joint Venture II, LLC, a contracted asset manager in HUD’s real estate-owned Management and Marketing III program, as part of the activities included in our 2017 annual audit plan and because it was the sole contractor to market and sell U.S. Department of Housing and Urban Development (HUD) owned properties located in Illinois. Our audit objective was to determine whether Alpine complied with its…
August 11, 2017
Report
#2017-CH-1004
Judgment Imposed on the Former President and Founder of MDR Mortgage Corporation Regarding Allegations of Failing To Comply With HUD’s Federal Housing Administration Requirements
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), in coordination with the U.S. Department of Justice’s Civil Division and the U.S. Attorney’s Office for the Northern District of Illinois’ Eastern Division, conducted a joint review of the former president and founder of MDR Mortgage Corporation.
MDR Mortgage provided annual verifications to HUD in 2006, 2007, and 2008, certifying that none…
March 31, 2017
Memorandum
#2017-CH-1801
Mortgage Services III, LLC, Bloomington, IL, Generally Complied With HUD’s Underwriting and Quality Control Requirements
We audited Mortgage Services III, LLC, a Federal Housing Administration (FHA)-approved direct endorsement lender, as part of the activities in our fiscal year 2016 annual audit plan. We selected Mortgage Services for review based on an analysis of data in the U.S. Department of Housing and Urban Development’s (HUD) Single Family Data Warehouse system for single-family lenders with home offices in Region 5’s jurisdiction. Our…
September 30, 2016
Report
#2016-CH-1011
The Alton Housing Authority, Alton, IL, Improperly Phased In Flat Rents for Its Public Housing Program
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, audited the Alton Housing Authority because it appeared to have flat rents set at a rate below 80 percent of the fair market rent in that area based on the information available in the Public and Indian Housing Information Center system. Our objective was to determine whether the Authority complied with HUD’s flat rent requirements.
The Authority…
May 19, 2016
Report
#2016-KC-1004
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…
March 01, 2012
Report
#2012-KC-1002
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…
February 22, 2012
Report
#2012-CH-1003
Final Civil Action - HUD Real Estate-Owned Program Violations (Report Not Available to the Public)
We reviewed alleged violations of U.S. Department of Housing and Urban Development (HUD) real estate-owned (REO) owner-occupancy program requirements by the subject (name withheld for privacy reasons). We concluded that the subject failed to comply with the HUD REO program requirement that an individual who purchases a REO home during its initial offering period must be the owner-occupant of the purchased home for one full year. In…
August 01, 2011
Memorandum
#2011-CF-1802
The Rockford Housing Authority, Rockford, IL, Needs to Improve Its American Recovery and Reinvestment Act Contract Administration Procedures
We audited the Rockford Housing Authority’s (Authority) American Recovery and Reinvestment Act of 2009 (Recovery Act) Public Housing Capital Fund Stimulus Formula and Competitive grants. The audit was part of the activities in our fiscal year 2011 annual audit plan. We selected the Authority based on a citizen complaint. Our objective was to determine whether the Authority administered its grants in accordance with Recovery Act and…
July 25, 2011
Report
#2011-CH-1010
The DuPage Housing Authority, Wheaton, IL, Inappropriately Administered Its Section 8 Housing Choice Voucher Program
The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General audited the DuPage Housing Authority’s (Authority) Section 8 Housing Choice Voucher program (program). The audit was part of the activities in our fiscal year 2010 annual audit plan. We selected the Authority based on the results of our audits of its Project-Based Voucher program. Our objective was to determine whether the Authority effectively…
March 23, 2011
Report
#2011-CH-1006
The East St. Louis, IL Housing Authority Drew Capital Funds for Unsupported and Ineligible Expenses
The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General audited the East St. Louis Housing Authority’s (Authority) Public Housing Capital Fund program. Our audit objective was to determine whether the Authority had proper support for its capital fund draws. We concluded that the Authority drew down grant funds for ineligible items and without adequate support. Specifically, it made unsupported draws…
February 28, 2011
Report
#2011-KC-1002
The Housing Authority of the County of Cook, Chicago, IL, Needs to Improve Its Controls Over Its Administration of Section 8 Housing Assistance Payments to Its Nonprofit Units
We audited the Housing Authority of the County of Cook’s (Authority) nonprofit development activities. The audit was part of the activities in our fiscal year 2010 annual audit plan. We selected the Authority’s nonprofit development activities based on a citizen’s complaint forwarded to our office from the County of Cook, IL’s Office of the Independent Inspector General. Our objective was to determine whether the Authority…
February 06, 2011
Report
#2011-CH-1005
Final Civil Action - Anchor Mortgage Corporation, Chicago, IL Loan Origination Fraud - Violations of the False Claims Act
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), completed a review of loan origination practices of Anchor Mortgage Corporation (Anchor), Chicago, IL. Our objective was to identify violations of Federal Housing Administration (FHA) requirements and the related losses incurred by HUD.
Based on our review, HUD sued the lender and its owner under the False Claims Act. In August 2010, the…
September 30, 2010
Memorandum
#2010-CF-1801
Final Civil Action Anchor Mortgage Corporation, Chicago, IL Loan Origination Fraud - Violations of the False Claims Act
September 30, 2010
Memorandum
#2010-CF-1801
The DuPage Housing Authority, Wheaton, IL, Inappropriately Administered Its Section 8 Project-Based Voucher Program
The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General audited the DuPage Housing Authority’s (Authority) Section 8 Project-Based Voucher program (program). The audit was part of the activities in our fiscal year 2009 annual audit plan. We selected the Authority as part of our internal audit of HUD’s oversight of the program and based upon our analysis of risk factors relating to the housing…
June 15, 2010
Report
#2010-CH-1008
The East St. Louis Housing Authority Had Weaknesses That Could Affect Its Capacity to Administer Its Recovery Act Funding
The East St. Louis Housing Authority will receive $4.9 million in Recovery Act funding to carry out capital and management activities at its public housing developments. HUD's Office of Inspector General (OIG) evaluated the Authority's capacity to administer its Recovery Act funds. The OIG found several weaknesses that could adversely affect its capacity to administer these funds and recommended that HUD require corrective…
September 18, 2009
Memorandum
#2009-KC-1801
The Chicago Housing Authority, Chicago, Illinois, Needs to Improve Its Controls over Its Section 8 Housing Assistance Payments
The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General audited the Chicago Housing Authority's (Authority) Section 8 Housing Choice Voucher program (program) under its Moving to Work Demonstration program. The audit was part of the activities in our fiscal year 2008 annual audit plan. We selected the Authority based upon our analysis of risk factors relating to the housing agencies in Region…
May 19, 2009
Report
#2009-CH-1009
The Springfield Housing Authority, Springfield, Illimois, Needs to Improve Its Controls over Its Section 8 Housing Assistance Payments
The Authority's program administration regarding housing assistance payment calculations and zero-income households was inadequate. The Authority did not effectively manage its housing assistance calculation and payment process in accordance with HUD requirements, resulting in nearly $57,000 in overpayment, more than $21,000 in unsupported payments and nearly $22,000 in underpayment for the period January 1, 2007, through August…
April 28, 2009
Report
#2009-CH-1007