Louis Manor Apartments, Port Arthur, TX, Multifamily Section 8 Program, Subsidized Unsupported Tenants and Uninspected Units
We audited the multifamily Section 8 Project-Based Rental Assistance (PBRA) program at the Louis Manor Apartments. We selected Louis Manor in accordance with our goal to review the U.S. Department of Housing and Urban Development’s (HUD) multifamily housing programs and because our analysis of Tenant Rental Assistance Certification System data showed red flag indicators at Louis Manor that appeared to be similar to the conditions we found...
Agosto 31, 2018
Report
#2018-FW-1006
Final Civil Action: The Former Executive Director of the Housing Authority of the City of Beeville, TX, Et Al, Settled False Claims Allegations in the Housing Choice Voucher Program
In violation of the housing assistance payment contract’s conflict-of-interest requirements, the former executive director of the Housing Authority of the City of Beeville, TX, executed housing assistance payment contracts on behalf of the Authority with her brother and sister. The former executive director did not fully disclose the conflicts-of-interest and had not sought a waiver from HUD’s Office of Public and Indian Housing until the...
Agosto 21, 2018
Memorandum
#2018-FW-1802
Eastwood Terrace Apartments, Nacogdoches, TX, Multifamily Section 8, Subsidized Questionable Tenants, Overhoused Tenants and Uninspected Units
We audited the Eastwood Terrace Apartments multifamily Section 8 Project-Based Rental Assistance (PBRA) program. We selected Eastwood Terrace in accordance with the Office of Inspector General’s (OIG) goal to review HUD’s multifamily housing programs and because the OIG Office of Investigation conducted an investigation and suggested that the complex might not have had appropriate controls to ensure tenant eligibility. Our objective...
Agosto 02, 2018
Report
#2018-FW-1005
The City of Dallas, TX, HOME Investment Partnerships Program Was Not Always Administered in Accordance With Requirements
We audited the City of Dallas’ HOME Investment Partnerships program, specifically, its reconstruction program. A City auditor’s report, multiple news articles, and U.S. Department of Housing and Urban Development (HUD) monitoring reviews identified issues with the City’s Federal funds and record keeping. Our audit objective was to determine whether the City followed HOME regulations and its own policies and procedures when it...
Mayo 08, 2018
Report
#2018-FW-1004
The Texas General Land Office, Austin, TX, Should Strengthen Its Capacity To Administer Its Hurricane Harvey Disaster Grants
We reviewed the Texas General Land Office in accordance with the U.S. Department of Housing and Urban Development, Office of Inspector General’s (HUD OIG) goal to review disaster funding and based on a congressional request for HUD OIG to conduct capacity reviews for Hurricanes Harvey, Irma, and Maria grantees. Our audit objectives were to determine whether the State of Texas had the capacity to follow Federal procurement regulations when...
Mayo 07, 2018
Report
#2018-FW-1003
Villa Main Apartments, Port Arthur, TX, Subsidized Nonexistent Tenants, Unsupported Tenants, and Uninspected Units
We audited the multifamily Section 8 project-based rental assistance (PBRA) program at the Villa Main Apartments. We selected Villa Main in accordance with the Office of Inspector General’s (OIG) goal to review the U.S. Department of Housing and Urban Development’s (HUD) multifamily housing programs and because the OIG Office of Investigation conducted an investigation and suggested that the complex might not have had appropriate controls...
Enero 30, 2018
Report
#2018-FW-1002
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
JPMorgan Chase Complied with the Market Rate Requirement for FHA Home Affordable Modification Program Stand-Alone Partial Claims
We audited JPMorgan Chase’s (Chase) Federal Housing Administration Home Affordable Modification Program (FHA-HAMP) stand-alone partial claims. We selected Chase for review based on our analysis of risk factors of loan servicers that filed FHA-HAMP stand-alone partial claims and in accordance with our annual audit plan. Our audit objective was to determine whether Chase complied with the FHA-HAMP stand-alone partial claim market rate...
Septiembre 15, 2017
Report
#2017-AT-1012
The Fort Bend County Community Development Department, Richmond, TX, Did Not Always Comply With Office of Community Planning and Development Program Requirements
We audited the Fort Bend County Community Development Department based on our risk analysis and as part of our annual audit plan to review Office of Community Planning and Development (CPD) funds. The audit objective was to determine whether the Department (1) properly carried out its activities as shown in its submission to the U.S. Department of Housing and Urban Development (HUD) in an economical, efficient, and effective manner; (2)...
Septiembre 14, 2017
Report
#2017-FW-1013
Final Civil Action: Financial Freedom, a Division of CIT Bank, N.A., Settled Allegations of Failing To Comply With HUD’s Federal Housing Administration Servicing Requirements for HECM Claims
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted the U.S. Department of Justice (DOJ), Washington, DC, and the U.S. Attorney’s Office for the Middle District of Florida in a civil investigation of Financial Freedom Acquisition, a division of CIT Bank, N.A. Financial Freedom was originally owned by IndyMac Bank until its failure in 2008, when the Federal Deposit Insurance Corporation...
Agosto 21, 2017
Memorandum
#2017-CF-1804
Beverly Place Apartments Subsidized Nonexistent Tenants, Unqualified Tenants, and Tenants With Questionable Qualifications
We audited the multifamily project-based Section 8 program at the Beverly Place Apartments. We selected Beverly Place because we received a complaint of potential fraud, suggesting that the complex did not have appropriate controls to ensure tenant and unit eligibility. Our objective was to determine whether the owner administered its project-based Section 8 program in accordance with U.S. Department of Housing and Urban Development...
Junio 29, 2017
Report
#2017-FW-1009
The Weslaco Housing Authority, Weslaco, TX, Paid Travel Costs That Did Not Comply With Federal, State, and Local Requirements
We audited the Weslaco Housing Authority, Weslaco, TX, because of issues noted in the Authority’s travel while reviewing its independent public accountant’s audited financial statements. Our audit objective was to determine whether the Authority complied with Federal, State, and local requirements for its travel payments.
The Authority paid its commissioners and employees for ineligible, unreasonable, unnecessary, and unsupported travel...
Junio 28, 2017
Report
#2017-FW-1008
The Housing Authority of the City of Jasper, TX, Did Not Operate Its Public Housing Programs in Compliance With HUD’s Requirements
In coordination with our Office of Investigations, we audited the Housing Authority of the City of Jasper, TX, because we received a complaint. The complainant’s allegations included the executive director’s misuse of Authority vehicles and other issues. Our audit objective was to determine whether the Authority operated its Public Housing programs in compliance with the U.S. Department of Housing and Urban Development’s (HUD)...
Abril 26, 2017
Report
#2017-FW-1006
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
The Houston Housing Authority, Houston, TX, Needs To Improve Its Procurement and Financial Operations and Its Housing Choice Voucher Program Subsidy Determinations
The Houston Housing Authority, Houston, TX, Needs To Improve Its Procurement and Financial Operations and Its Housing Choice Voucher Program Subsidy Determinations
We audited the Houston Housing Authority’s public housing and Housing Choice Voucher programs. We selected the Authority for review in accordance with our audit plan and based upon risk analyses. Our objectives were to determine whether the Authority (1) followed U.S....
Diciembre 26, 2016
Report
#2017-FW-1003
Fort Worth Housing Solutions, Fort Worth, TX, Generally Complied With HUD Regulations In Its Transactions With Its Related Entity, QuadCo Management Solutions, LLC
Based on the results of a prior audit, we reviewed Fort Worth Housing Solutions (FWHS) and transactions with its related entity QuadCo Management Solutions, LLC (QuadCo) of Fort Worth, TX. Our objectives were to determine whether FWHS (1) properly managed its U.S. Department of Housing and Urban Development (HUD) funds, specifically whether it improperly loaned $1.6 million in HUD funds to QuadCo; (2) paid management fees within HUD’s...
Diciembre 20, 2016
Report
#2017-FW-1002
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
Park View Care Center, Fort Worth, TX, Did Not Always Comply With Its Regulatory Agreement and HUD Requirements
We audited Park View Care Center’s owner based on a referral from the U.S. Department of Housing and Urban Development’s (HUD) Departmental Enforcement Center. Our objective was to determine whether the property owner complied with the owner’s regulatory agreement and HUD requirements for the Section 232 program. Park View’s owner did not comply with all the terms of its regulatory agreement and HUD requirements. Specifically...
Septiembre 29, 2016
Report
#2016-FW-1009
The Harris County Community Services Department Needs to Improve Procurement and Subrecipient Oversight in Its CDBG Program Activities
We audited the Harris County Community Services Department’s Community Development Block Grant (CDBG) program based on our risk analysis and as part of our annual audit plan to review community planning and development funds. The audit objective was to determine whether the Department properly administered and adequately documented its CDBG program activities in accordance with U.S. Department of Housing and Urban Development (HUD)...
Septiembre 27, 2016
Report
#2016-FW-1008