We audited the State of North Carolina’s Community Development Block Grant Disaster Recovery (CDBG-DR) funds.  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…

We audited Bank2’s origination of Section 184 Loan Guarantees for Indian Housing program loans.  We selected Bank2’s Section 184 program because (1) an internal audit report and corrective action verification determined that the U.S. Department of Housing and Urban Development (HUD) lacked proper oversight of the program and lenders did not underwrite loans in accordance with HUD requirements 2) Bank2 is one of the largest Section…

We audited the North Carolina Department of Commerce’s Neighborhood Stabilization Program (NSP) grants as part of our annual audit plan because the Department received more than $57 million in NSP1 and NSP3 funding.  Our audit objective was to determine whether the Department administered its NSP1 and NSP3 grants in accordance with the U.S. Department of Housing and Urban Development’s (HUD) requirements. The Department did not…

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…

We audited the Greensboro Housing Authority’s Rental Assistance Demonstration Program (RAD) conversion.  Our objective was to determine whether the Authority administered its RAD conversion in accordance with U.S. Department of Housing and Urban Development (HUD) requirements.  Specifically, we wanted to determine whether the Authority (1) executed appropriate written agreements, (2) ensured that project financing sources…

We audited the North Carolina Department of Commerce’s Small Cities Community Development Block Grant as part of the activities in our annual audit plan.  Our audit objectives were to determine whether the Department of Commerce (1) awarded funds to local governments that met a CDBG national objective, (2) spent funds only for activities that were eligible and supported, and (3) included all methods of distribution in its action…

We audited the Lexington Housing Authority’s Rental Assistance Demonstration Program (RAD) conversion.  We selected the Authority based on concerns from the U.S. Department of Housing and Urban Development’s (HUD) North Carolina State Office of Public Housing and a request from the Housing Authority’s Board of Commissioners.  Our audit objective was to determine whether the Authority administered its RAD program in…

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…

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. …

We audited the Sanford Housing Authority’s Section 8 Housing Choice Voucher Programs as a result of problems identified during a technical assistance review performed by the U.S. Department of Housing and Urban Development’s (HUD) North Carolina State Office of Public Housing.  Additionally, our audit is in keeping with our annual audit plan to ensure that public housing agencies sufficiently administer HUD’s programs in…

We audited the Sanford Housing Authority’s procurement and financial operations.  We selected the Authority based on concerns from the U.S. Department of Housing and Urban Development’s (HUD) North Carolina State Office of Public Housing, following a technical assistance review performed. The technical assistance review identified issues with the Authority’s procurement practices and financial operations, among other items.…

We audited the Muscogee (Creek) Nation’s use of U.S. Department of Housing and Urban Development (HUD) funds in accordance with the Office of Inspector General’s goal to ensure the integrity and soundness of HUD’s Public and Indian Housing programs and to follow up on weaknesses identified in other reviews.  The audit objective was to determine whether the Nation complied with HUD requirements when it housed families and procured…

We audited the Housing Authority of the City of Durham’s Section 8 Housing Choice Voucher program’s housing quality standards based on our recent audit of the Authority’s program, during which potential issues with the Authority’s inspections were noted, and as part of our annual audit plan.  Our audit objective was to determine whether the Authority ensured that program units met the U.S. Department of Housing and Urban…

We audited the Housing Authority of the City of Durham’s Section 8 Housing Choice Voucher program based on a hotline citizen complaint and as part of the activities in our fiscal year 2015 annual audit plan.  Our objective was to determine whether the Authority administered its program in accordance with the U.S. Department of Housing and Urban Development’s (HUD) and its own requirements and whether the complaint was valid. The…

We reviewed the City of Moore, OK, because it received $52.2 million in Community Development Block Grant Disaster Recovery (CDBG-DR) funding in response to the tornado that struck Moore on May 20, 2013.  Further, the City only recently became a CDBG entitlement grantee, and there was a substantial increase between its regular CDBG funding and its CDBG-DR funding.  Also, our annual audit plan placed a priority on reviewing…

We audited the City of High Point’s lead-based paint procurement and eligibility operations.  We selected the Authority based on concerns from the U.S. Department of Housing and Urban Development’s (HUD) Office of Healthy Homes and Lead Hazard Control.  Our audit objective was to determine whether the City administered its lead-based paint hazard control grants in accordance with HUD’s regulations and grant requirements for…

Our office assisted the U.S. Department of Justice (DOJ), U.S. Attorney’s Office, Eastern District of New York, in conducting an investigation of Bank of America’s origination of mortgage loans insured by the Federal Housing Administration (FHA) from May 1, 2009, through March 31, 2012.   On August 20, 2014, Bank of America entered into a settlement agreement to pay $16.65 billion, of which $9.65 billion resolved pending and…

We audited the U.S. Department of Housing and Urban Development’s (HUD) Greensboro, NC, Office of Public Housing as part of a nationwide audit of HUD’s oversight of environmental reviews.  We selected the Greensboro Office based on our risk assessment.  Our audit objectives were to determine whether the Greensboro Office of Public Housing ensured that it performed the required reviews and did not release funds until all…

We audited the Section 8 program administered by Summit Bradford Apartments in Tulsa, OK.  We selected Bradford because we were informed that its management agent may have received Section 8 subsidies for vacant units.  Our objective was to determine whether Summit Bradford Apartments, LP, the owner, and Summit Housing Partners, LLC, the management agent, administered Bradford’s Section 8 program in compliance with its…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted the Office of the United States Attorney, Civil Division, of the Eastern District of North Carolina with a review of loans allegedly improperly originated by Numerica Mortgage, LLC.  Numerica was a Federal Housing Administration (FHA) direct endorsement mortgagee.  The allegations originated with the office of the North…