We audited the U.S. Department of Housing and Urban Development’s (HUD) fiscal year 2021 compliance with the Payment Integrity Information Act of 2019 (PIIA) and implementation of Office of Management and Budget (OMB) guidance. PIIA was enacted to prevent and reduce improper payments and require each agency’s inspector general to perform an annual review of the agency’s compliance with PIIA. Our objectives were to assess (1) whether...
Junio 27, 2022
Approximately 31,500 FHA-Insured Loans Did Not Maintain the Required Flood Insurance Coverage in 2020
The U.S. Department of Housing and Urban Development, Office of Inspector General, has completed its audit of Federal Housing Administration (FHA)-insured loans serviced in calendar year 2020. Our audit objective was to determine whether borrowers of FHA-insured loans maintained proper flood insurance coverage. We found FHA insured at least 31,500 loans serviced during calendar year 2020 for properties in SFHA flood zones that did...
Marzo 22, 2022
The Federal Information Security Modernization Act of 2014 (FISMA) directs Inspectors General to conduct an annual evaluation of the agency information security program. FISMA, Department of Homeland Security (DHS), Office of Management and Budget (OMB) and National Institute of Standards and Technology (NIST) establish information technology (IT) security guidance and standards for Federal agencies. We conducted this evaluation to...
Febrero 17, 2022
Fiscal Year 2021 Federal Information Security Modernization Act (FISMA) Evaluation Security Technical Testing Topic Brief
The Federal Information Security Modernization Act of 2014 (FISMA) requires all federal agencies to conduct independent security technical verification testing on a sampling of information systems annually. In conjunction with our fiscal year 2021 FISMA evaluation (2021-OE-0001), we conducted a targeted security testing assessment of sample systems that resulted in a Topic Brief. The objective of this application vulnerability...
Febrero 15, 2022
The City of Houston, Houston, TX, Faced Challenges in Administering Its Hurricane Harvey Program and Risked Losing Its Funding
We audited the City of Houston’s Hurricane Harvey Community Development Block Grant Disaster Recovery (CDBG-DR) program. We initiated this audit as part of our commitment to helping the U.S. Department of Housing and Urban Development (HUD) address its top management challenges and to support HUD’s strategic objective to support effectiveness and accountability in long-term disaster recovery. Further, Congress has expressed strong...
Enero 04, 2022
We reviewed the U.S. Department of Housing and Urban Development’s (HUD) ability to effectively complete information technology (IT) acquisitions. HUD’s IT systems and its modernization plans depend heavily on contractors, yet HUD has historically faced significant challenges with implementing effective acquisition processes. Therefore, HUD’s acquisition capacity represents a key potential risk within HUD’s IT environment. We found...
Noviembre 17, 2021
Lessons Learned and Key Considerations From Prior Audits and Evaluations of the CDBG Disaster Recovery Program
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act made available $5 billion in supplemental CDBG funding for grants to prevent, prepare for, and respond to the coronavirus pandemic (CDBG-CV grants). Because of similarities, we reviewed 132 CDBG-DR program audits and evaluations issued from May 2002 to March 2020 to summarize the common CDBG-DR program weaknesses and risks for CPD to consider to help its...
Noviembre 02, 2021
The Bay City Housing Authority, Bay City, TX, Did Not Follow Requirements for Its Legal Services Contract, Administrative Costs, and Board Meetings
Based on a complaint and a request from the U.S. Department of Housing and Urban Development’s Office of Public and Indian Housing (HUD PIH), we audited the Bay City Housing Authority, Bay City, TX. The complainant’s allegations included improper procurement of an attorney and board meetings held without proper notice. HUD PIH expressed concerns regarding the Authority’s financial records and policy adherence. Our audit objectives...
Septiembre 29, 2021
Opportunities Exist To Improve the U.S. Department of Housing and Urban Development’s Hiring Process
While some of HUD’s efforts to improve its hiring and human capital functions and reduce its average time-to-hire have been successful, HUD’s hiring process overall was not efficient. HUD’s Office of the Chief Human Capital Officer (OCHCO), which is responsible for developing and implementing policies and procedures associated with human capital management, set a goal to reduce the average time-to-hire but did not meet this goal. ...
Agosto 02, 2021
The City of Houston’s Housing and Community Development Department, Houston, TX, Did Not Always Ensure That Its Program Followed Procurement Requirements
We audited the City of Houston’s Community Development Block Grant Disaster Recovery (CDBG-DR) 2015 program. Under this program, the Consolidated Appropriations Acts of 2016 and 2017 made funds available for necessary expenses related to disaster relief, long-term recovery, restoration of infrastructure and housing, and economic revitalization. We audited this program based upon the U.S. Department of Housing and Urban Development,...
Junio 21, 2021
Harris County Community Services Department, Houston, TX, Was Inefficient and Ineffective in Operating Its Hurricane Harvey Program
We audited the Harris County Hurricane Harvey Community Development Block Grant Disaster Recovery (CDBG-DR) program. We initiated this audit as part of our commitment to helping the U.S. Department of Housing and Urban Development (HUD) address its top management challenges and to support HUD’s strategic objective to support effectiveness and accountability in long-term disaster recovery. Further, Congress has expressed strong interest...
Junio 02, 2021
We audited the U.S. Department of Housing and Urban Development’s (HUD) fiscal year 2020 compliance with the Payment Integrity Information Act of 2019 (PIIA) and other Office of Management and Budget guidance. PIIA was enacted to prevent and reduce improper payments and requires each agency’s inspector general to perform an annual review of the agency’s compliance with PIIA. Our audit objective was to determine whether HUD complied...
Mayo 17, 2021
HUD does not have a departmentwide policy for dealing with radon contamination. Instead, HUD relies on each program office to develop radon policies that align with HUD’s environmental regulations. The three program offices reviewed do not have consistent radon policies. Only Multifamily’s radon policy includes radon testing and mitigation requirements. PIH’s policy strongly encourages but does not require public housing agencies (...
Abril 12, 2021
In June 2020, we received letters from members of Congress, including the chairpersons of the House Committee on Financial Services and Oversight and Investigation Subcommittee, expressing concern that the U.S. Department of Housing and Urban Development (HUD) imposed a new, nonpublic, and legally erroneous policy that prohibited issuing Federal Housing Administration (FHA)-insured loans to Deferred Action for Childhood Arrivals (DACA...
Marzo 30, 2021
The West Calumet Housing Complex (WCHC), located in East Chicago, IN, was a public housing development that opened in 1972 on top of a former lead smelting plant. HUD and other agencies missed multiple opportunities to identify site contamination at WCHC. As a result, WCHC residents continued living in unsafe conditions for decades, and inadequate oversight led to the lead poisoning of children in WCHC. Between 2005 and 2015, a...
Febrero 14, 2021
Final Civil Action: PrimeLending, a PlainsCapital Company, 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. Department of Justice (DOJ), Washington, DC, and the U.S. Attorney’s Offices for the District of Kansas and the Northern District of Texas in the civil investigation of PrimeLending, a PlainsCapital company. The investigation was of PrimeLending’s origination, underwriting, and quality control of Federal Housing...
Septiembre 30, 2019
The Texas General Land Office, Jasper, TX, Did Not Ensure That Its Subrecipient Administered Its Disaster Grant in a Prudent and Cost-Effective Manner
We audited the Texas General Land Office’s Community Development Block Grant Disaster Recovery (CDBG-DR) grant that it used to rehabilitate or reconstruct 125 homes affected by Hurricane Ike in 2008. Texas General Land Office contracted with the Deep East Texas Council of Governments, in Jasper, TX, to operate its program. We reviewed Texas General Land Office and its subrecipient as part of our annual audit plan to review CDBG-DR...
Septiembre 30, 2019
The City of Dallas, Dallas, TX, Did Not Follow Environmental Requirements or Effectively Manage Its Community Housing Development Organizations
We audited the city of Dallas’ management of its community housing development organizations (CHDO). We performed this audit because of our previous audit work on the City’s Home Investment Partnerships program. During that audit, we concluded that the City did not follow HOME regulations and its own policies and procedures in its reconstruction program or the administration of its match contributions, resulting in more than $4.2...
Junio 17, 2019
Northline Point Apartments, Houston, 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 Northline Point Apartments. We selected Northline Point in accordance with our goal to review the U.S. Department of Housing and Urban Development’s (HUD) multifamily housing programs and because of a request from HUD to audit the property based on extensive findings from its project-based contract administrator’s management and occupancy review...
Junio 10, 2019
The Weslaco Housing Authority, Weslaco, TX, Did Not Follow Federal, State, and Authority Requirements for Legal Services
We audited the Weslaco Housing Authority, Weslaco, TX, based on a referral to our office concerning issues with the Authority’s process for awarding its 2014 legal services contract. Our audit objective was to determine whether the Authority procured its U.S. Department of Housing and Urban Development (HUD) Housing Choice Voucher Program- and operating subsidy-funded legal services contract in accordance with Federal, State, and...
Mayo 15, 2019