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...

The U.S. Department of Housing and Urban Development, Office of Inspector General, audited the lender, Berkeley Point Capital, and the underwriting for the Second and Delaware project loan.  We initiated the review of the loan underwriting based on a previous review of the Second and Delaware project, which focused on the construction and development of the project.  The almost $46 million project is Federal Housing Administration (...

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...

We audited the Crisfield Housing Authority’s use of public housing program operating and capital funds because we received a hotline complaint alleging misuse of public housing assets and we had never audited the Authority.  The audit objective was to determine whether the Authority administered its public housing program in accordance with applicable U.S. Department of Housing and Urban Development (HUD) requirements and its annual...

On April 17, 2018, the Office of Program Enforcement issued a letter stating that it had reached a resolution under a Program Fraud Civil Remedies Act of 1986[1] case regarding Summit Bradford Apartments located in Tulsa, OK, following its review.  The Government alleged that the owner submitted 40 false claims under the Act.  The Office of Program Enforcement included with its letter the March 28, 2018, settlement agreement with BSR...

We audited the Crisfield Housing Authority’s Housing Choice Voucher program because we received a hotline complaint alleging that it misused public housing assets and we had never audited the Authority.  Our audit objective was to determine whether the Authority (1) ensured that families met eligibility requirements, (2) properly admitted families from the waiting list, (3) correctly calculated housing assistance payments and maintained...

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...

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...

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...

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...

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...

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...

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...

We audited the Housing Authority of the City of Tulsa’s administration of its Section 8 program.  We selected the Authority based on reports generated by the U.S. Department of Housing and Urban Development’s (HUD) Enterprise Income Verification system (EIV).  The Authority had indicators of noncompliance with program requirements.  Specifically, EIV reported an annualized income discrepancy of more than $1.6 million for 328...

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...

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...

We audited the State of Oklahoma because it received $93.7 million in Community Development Block Grant Disaster Recovery (CDBG-DR) allocations for presidentially declared disasters that occurred in 2011, 2012, and 2013.  The substantial amount of CDBG-DR funding required a review of the State’s program.  Our objective was to determine whether the State obligated and spent its grant in accordance with requirements.  The State...

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. ...

We audited the Housing Opportunities Commission of Montgomery County’s Housing Choice Voucher program because (1) it had a large program receiving more than $82 million in fiscal year 2015, (2) it had the second largest number of housing choice vouchers of non-Moving to Work housing agencies within the jurisdiction of the Philadelphia region, and (3) we had not audited its program.  Our audit objective was to determine whether the...

We audited the Housing Authority of the City of Annapolis’ procurement activities due to a hotline complaint.  The complaint alleged that the Authority failed to follow procurement requirements.  This is the second of two audit reports on the Authority.  Our audit objective was to determine whether the Authority procured services and products using operating and capital funds in accordance with applicable requirements. The...