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...

At the request of the Region X Multifamily Hub, we audited the John C Cannon Retirement and Assisted Living Residence (project) to determine if the project owner used project funds in accordance with the regulatory agreement. We found that the project owner failed to get HUD approval for leases costing $189,000, used project funds to obtain unneeded equipment costing $10,700, and failed to keep adequate documentation to support expenditures...

We audited late endorsement payment histories at Washington Mutual Bank (Washington Mutual), Seattle, Washington. We reported the results of our review in Audit Report 2005-SE-1006, issued on July 5, 2005. After the audit report was issued and the report recommendations were closed out in HUD’s Audit Resolution and Corrective Actions Tracking System (ARCATS), we recommended that HUD’s Office of General Counsel take additional sanctions against...

We audited the City of Tulsa's (City) Community Development Block Grant (CDBG) program due to a departmental request. Our initial objective was to determine whether the City expended CDBG funds in accordance with U. S. Department of Housing and Urban Development (HUD) rules and regulations. Based upon the initial results, we modified the objective to determine whether the City ensured that its largest subrecipient, the Tulsa Development...

At HUD's request, we audited the Housing Choice Voucher program of the Richland Housing Authority (Authority). HUD was concerned about the results of an audit of the Authority performed by the Washington State Auditor's Office. Our objective was to determine whether the Authority made ineligible purchases with program funds. We found that the Authority did not track its program expenses. Also, it charged more than $57,000 in...

We audited Renton Housing Authority (Authority), Renton, Washington. The review was initiated due to a hotline complaint from a Housing Choice Voucher program recipient. The complainant stated that the contract rent was unreasonable because it exceeded the rent for comparable unassisted units on the premises. The audit objective was to determine whether the complaint was valid. We also wanted to determine whether the Authority had controls in...

We audited A Plus Mortgage, Inc. (A Plus), to determine whether (1) the fees charged to Federal Housing Administration (FHA) borrowers by A Plus were appropriate under U.S. Department of Housing and Urban Development (HUD), FHA, and Real Estate Settlement Procedures Act (RESPA) regulations and (2) the loan officers originating FHA-insured loans were employees of A Plus. A Plus disregarded HUD FHA requirements and provisions of RESPA and engaged...

At the request of HUD, we audited Green River Management, Inc., (Green River) which managed the Housing Authorities of the City of Konawa, City of Langston, City of Pauls Valley, City of Wynnewood, Town of Cheyenne, and Caddo Electric Cooperative. Our objective was to determine whether the housing authorities appropriately procured Green River as their management agent, maintained properties, and carried out their financial responsibilities in...

We audited the Tacoma Consortium HOME Investment Partnerships Program as a result of a risk assessment performed by HUD-OIG Region IX. Our objective was to determine whether the Consortium complied with HOME requirements, laws, and regulations with respect to the homeowner rehabilitation program and HUD procurement regulations. The Consortium generally administered HOME in accordance with HUD requirements but violated HOME regulations when it...