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...
Septiembre 30, 2018
Report
#2018-CH-1010
The Housing Authority of the County of Lake, Grayslake, IL, Did Not Always Comply With HUD’s and Its Own Requirements Regarding the Administration of Its Housing Choice Voucher Program
We audited the Housing Authority of the County of Lake, IL’s Housing Choice Voucher Program based on the activities included in our 2018 annual audit plan and our analysis of risk factors related to the public housing agencies in Region 5’s jurisdiction. Our audit objective was to determine whether the Authority appropriately managed its program in accordance with the U.S. Department of Housing and Urban Development’s (HUD) and its own...
Septiembre 25, 2018
Report
#2018-CH-1007
DuPage County, IL, Did Not Always Comply With Federal Requirements Regarding the Administration of Its Community Development Block Grant Disaster Recovery Program
We audited DuPage County’s Community Development Block Grant Disaster Recovery program. The audit was part of the activities in our fiscal year 2017 annual audit plan. We selected the County’s program for review because the County had spent the most program funds authorized under the Disaster Relief Appropriations Act of 2013 in Region 5’s jurisdiction.[1] Our objective was to determine whether the County administered its...
Septiembre 30, 2017
Report
#2017-CH-1010
The Menard County Housing Authority, Petersburg, IL, Did Not Comply With HUD’s and Its Own Requirements Regarding the Administration of Its Housing Choice Voucher Program
We audited the Menard County Housing Authority’s Housing Choice Voucher program based on the activities included in our 2017 annual audit plan and our analysis of risk factors related to the public housing agencies in Region 5’s jurisdiction. Our audit objective was to determine whether the Authority complied with the U.S. Department of Housing and Urban Development’s (HUD) and its own requirements regarding the administration of its...
Septiembre 28, 2017
Report
#2017-CH-1007
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 annual...
Septiembre 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...
Septiembre 20, 2017
Report
#2017-NY-1011
Final Civil Action: First American Mortgage Trust Settled Allegations of Failing To Comply With HUD’s Federal Housing Administration Loan Requirements
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted the U.S. Attorney’s Office for the District of Massachusetts in the civil investigation of First American Mortgage Trust. First American has its principal place of business in Brighton, MA, and does business as NXTLoan.Com Corp., a Delaware corporation. First American is the parent company of NXTL.
On October 18, 2016, First...
Septiembre 18, 2017
Memorandum
#2017-CF-1805
The Cooperative and Management Agent Lacked Adequate Controls Over the Operation of Lakeview East Cooperative, Chicago, IL
We audited the U.S. Department of Housing and Urban Development’s (HUD) resident home-ownership program grant for Lakeview East Cooperative (project) based on the results of a risk assessment of multifamily housing programs in Region 5’s jurisdiction (States of Illinois, Indiana, Michigan, Minnesota, Ohio, and Wisconsin). The audit was part of the activities in our fiscal year 2017 audit plan. Our objective was to determine whether...
Septiembre 05, 2017
Report
#2017-CH-1006
Stone Terrace Apartments, Chicago, IL, Did Not Always Comply With HUD’s Requirements Regarding the Administration of Its Section 8 Housing Assistance Payments Program
We audited the Stone Terrace Apartments’ Section 8 housing assistance payments program based on a citizen’s complaint alleging mismanagement of its housing assistance payments contract. The audit was part of the activities in our fiscal year 2017 annual audit plan. Our audit objective was to determine whether the management agent administered the project’s program in accordance with the owner’s contract with the U.S. Department of...
Agosto 25, 2017
Report
#2017-CH-1005
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 contract with...
Agosto 11, 2017
Report
#2017-CH-1004
The Boston Housing Authority, Boston, MA, Housed Eligible Tenants and Correctly Calculated Voucher Subsidies
We audited the Housing Choice Voucher program at the Boston Housing Authority because of the size of the program, the time that had elapsed since our last audit, and the inherent program risk. The Authority operates the second largest Housing Choice Voucher program in New England. In addition, our office had not audited any Authority program since 2010. The Housing Choice Voucher program is inherently risky as Congress...
Abril 05, 2017
Report
#2017-BO-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 of its...
Marzo 31, 2017
Memorandum
#2017-CH-1801
The City of Springfield, MA, Needs To Improve Its Compliance With Federal Regulations for Its Community Development Block Grant Disaster Recovery Assistance Grant
We audited the Community Development Block Grant Disaster Recovery (CDBG-DR) assistance grant provided to the City of Springfield, MA, by the U.S. Department of Housing and Urban Development (HUD) to assist in disaster recovery and rebuilding efforts resulting from damages caused by presidentially declared disasters. The audit objective was to determine whether the City properly followed Federal procurement requirements and whether...
Octubre 17, 2016
Report
#2017-BO-1002
Sons of Divine Providence Did Not Ensure That the Don Orione Home, East Boston, MA, Operated in Accordance With Its Regulatory Agreement
Sons of Divine Providence did not properly oversee the HUD-insured nursing home to ensure that it operated in accordance with its regulatory agreement. By not informing HUD of the lawsuits, the changes in management agents, and the loans, Sons of Divine Providence did not provide HUD the necessary data to understand the risk to the HUD insurance fund. However, when Sons of Divine Providence sold the nursing home and paid off the HUD...
Octubre 13, 2016
Memorandum
#2017-BO-1801
The Condominium Association and Management Agent Lacked Adequate Controls Over the Operation of West Park Place Condominium, Chicago, IL
We audited the U.S. Department of Housing and Urban Development’s (HUD) resident home-ownership program grant for West Park Place Condominium (project) based on the results of a risk assessment of multifamily housing programs in Region 5’s jurisdiction (States of Illinois, Indiana, Michigan, Minnesota, Ohio, and Wisconsin) and the activities in our fiscal year 2016 annual audit plan. Our objective was to determine whether the West Park...
Septiembre 30, 2016
Report
#2016-CH-1009
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. ...
Septiembre 30, 2016
Report
#2016-CH-1011
The Somerville Housing Authority, Somerville, MA, Did Not Always Support Its Allocation of Costs to Asset Management Projects
We audited the Somerville Housing Authority’s public housing and Public Housing Capital Fund programs as part of our fiscal year 2016 regional audit plan. We initiated our review because the U.S. Department of Housing and Urban Development’s (HUD) Boston Office of Public and Indian Housing had not monitored the programs in the past 5 years and we had not audited the Authority in the past 10 years. Our audit objectives were to...
Agosto 12, 2016
Report
#2016-BO-1004
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 did...
Mayo 19, 2016
Report
#2016-KC-1004
EdgeAlliance, Inc., Chicago, IL, Did Not Administer Continuum of Care Program Funds for The Daniel R. Ruscitti Phoenix House in Accordance With Federal Regulations
We audited EdgeAlliance, Inc.’s Continuum of Care program funds for The Daniel R. Ruscitti Phoenix House (project). The audit was part of the activities in our fiscal year 2015 annual audit plan. We selected the project for review based upon a citizen’s complaint. Our objectives were to determine whether EdgeAlliance complied with Federal requirements in its (1) maintenance of financial management systems for program funds and...
Noviembre 23, 2015
Report
#2016-CH-1001
The State of Illinois’ Administrator Lacked Adequate Controls Over the State’s Community Development Block Grant Disaster Recovery Program-Funded Projects
We audited the State of Illinois’ Community Development Block Grant Disaster Recovery program. The audit was part of the activities in our fiscal year 2015 annual audit plan. We selected the State’s program based on a congressional request from the Honorable Mark Kirk to review the State’s awards of program funds under the Consolidated Security, Disaster Assistance, and Continuing Appropriations Act of 2009 for three projects....
Septiembre 30, 2015
Report
#2015-CH-1009