We completed an evaluation of HUD’s management of its Workers’ Compensation Program (WCP).  Our primary objectives were to determine whether HUD’s contractor, Lifecare Management Partners (Lifecare) of Alexandria, VA, managed the program in accordance with its contract terms and identify opportunities to improve program policy and procedures.  We also wanted to determine the level of program noncompliance and potential fraud…

In response to a request from Senator Charles Grassley, Ranking Member, Senate Committee on Finance, we conducted an evaluation of Mortgagee Review Board (MRB/Board) enforcement actions as part of HUD's oversight of Federal Housing Administration (FHA) single-family mortgage lenders. Senator Grassley asked us to update a review of the MRB by the Government Accountability Office (GAO) in its 2004 report on FHA risk management. The…

We completed an inspection of HUD funds drawn from the Line of Credit Control System (LOCCS) to pay for construction at Savoy Place, the last phase of the Desire Development at The Housing Authority of New Orleans (HANO).  The Desire Development is a three-phase HOPE VI development, comprising of Abundance, Treasure, and Savoy Place.   We compared progress payments HANO made to the developer, Michaels Development…

We completed an evaluation of public housing reconstruction with HUD funds on the Mississippi Gulf Coast. Our objective was to determine the status of the recovery efforts and determine how the risks of building on sites located in designated flood plains are being addressed. Hurricane Katrina damaged 29 project sites. After Hurricane Katrina, FEMA revised floodplain guidance in the affected areas, and HUD made $100 million in grant…

We completed an inspection of Section 8 housing assistance payments (HAP) to owners of multifamily properties in Louisiana that were severely damaged or destroyed by Hurricane Katrina in August 2005. The tenants vacated these properties shortly after Katrina struck. In the storm's aftermath, HUD and the Louisiana Housing Finance Agency (LHFA) continued to subsidize property owners, although many properties under HAP contract were…

We completed an evaluation of HUD's Office of Fair Housing and Equal Opportunity (FHEO) and its nonprofit affiliated Fair Housing Assistance Program (FHAP) and their processing of housing discrimination complaints. The objective of our evaluation was to determine whether FHEO and FHAP intake and investigation processes are timely completed, consistently thorough, and accurately reported in the Title VIII Automated Paperless Tracking…

We completed an evaluation of the preforeclosure sales program in Region III. Our objectives were to determine whether mortgagees administered the program in compliance with Federal Housing Administration (FHA) requirements and whether these procedures effectively limited the risk of program fraud and abuse. We determined that mortgagees technically complied with most FHA requirements in administering the program for the homes tested…

We completed a nationwide inspection of the monitoring conducted by State agencies of units of general local government (referred to in this document as local grant recipients) under the State Community Development Block Grant (CDBG) program. Monitoring is one method used by States to ensure compliance with program regulations and assists agencies in the detection and prevention of fraud. The objective of this inspection was to…

We completed a risk assessment of Community Development Block Grant (CDBG), Office of Public and Indian Housing (PIH), and other funding associated with Katrina Public Housing reconstruction on the Mississippi Gulf Coast. Our objectives were (1) to identify the source, amounts, and disposition of disaster relief funding and (2) to assess the "overlap" risk associated with the multiple funding sources and the extent to which there may…

We completed a limited review concerning Sprint FONCARDS or calling cards. We conducted the review to ensure adequate controls were present. The objectives of our review were to determine the controls in place to identify waste, fraud or abuse regarding the FTS 2001 Sprint FONCARD. We determined that verification memorandums were not being sent to individuals to verify that calls were official and were made by the individual as…

We completed a limited review of social security number validation procedures used by lenders to qualify single family loans for FHA mortgage insurance. Prior to 2005, the use of invalid or false social security numbers (SSNs) by borrowers and co-borrowers to obtain FHA insured mortgages was an issue. Effective June 2005, FHA required the lenders to validate borrowers social security numbers by matching their names and dates of birth…

We completed a limited review concerning college students living in Section 8 subsidized housing. We conducted the review in response to media and congressional attention and subsequent issuance of new regulations and policy guidance by HUD that restricted the eligibility of the students. The media had reported that taxpayer subsidized housing was being occupied by students to offset the high price of college. It also reported…

WASHINGTON DC— Today, the U.S. Housing and Urban Development Office of Inspector General issued an evaluation report about HUD’s processes for monitoring children with elevated blood lead levels (EBLL) and lead-based paint hazards in public housing.The evaluation examined HUD’s processes for addressing cases of EBLLs in children residing in public housing determined the effectiveness of two trackers that HUD uses to ensure appropriate…