We performed this review at the request of the U.S. Department of Housing and Urban Development's (HUD) Multifamily Program Center, Richmond field office, due to concerns regarding the appropriateness of HUD's current regulatory agreement with the Yorkville Cooperative (Cooperative). Our objective was to determine if HUD entered into the appropriate regulatory agreement with the Cooperative for its Section 221(d)(3) program. HUD and…

We audited the U.S. Department of Housing and Urban Development’s Office of Healthy Homes and Lead Hazard Control’s (OHHLHC) selection procedures used to award American Recovery and Reinvestment Act of 2009 (Recovery Act) grants. Our objective was to determine whether OHHLHC awarded (1) Recovery Act funds in accordance with the selection criteria specified in the fiscal year 2008 notices of funding availability (notices) and the…

As part of our organization’s commitment to ensure the proper use of recovery funding, we performed a review of the City of Grand Prairie’s (City) operations to evaluate its capacity to administer the $3.2 million received under the Housing and Economic Recovery Act of 2008 and the American Recovery and Reinvestment Act of 2009 (Recovery Act). Specifically, our objective was to review and assess the City’s capacity and risks in the…

We performed an audit of the State of Louisiana, Office of Community Development (State), Recovery Workforce Training Program (Program) administered by the State’s subrecipient, Louisiana Workforce Commission (LWC). We initiated the audit as part of the Office of Inspector General (OIG) Gulf Coast Region’s audit plan and examination of relief efforts provided by the Federal Government in the aftermath of Hurricanes Katrina and Rita…

As part of the Office of the Inspector General’s (OIG) directive to determine whether safeguards exist to ensure that American Recovery and Reinvestment Act of 2009 (Recovery Act) funds are used for their intended purposes, we conducted a capacity review of the City San Antonio, TX (City) operations. Our objective was to determine whether the City had the capacity to account for Recovery Act funds and the controls to ensure that it…

We completed a capacity review of the County of Riverside’s (County) Neighborhood Stabilization Program (Program). We performed the audit because Housing and Economic Recovery Act of 2008 reviews are part of the Office of the Inspector General’s annual audit plan and the program was identified as high risk. In addition, the County was awarded significant Program funds of $48.6 million. Our objective was to determine whether the…

As part of the Office of Inspector General’s (OIG) obligation to ensure accountability and transparency in the use of the American Recovery and Reinvestment Act of 2009 (Recovery Act) funds, we performed a capacity review to assess the City of Utica, New York’s (City) administration of its lead-based paint hazard control program. The City was awarded $2.04 million under the Recovery Act to carry out lead-based paint hazard control…

We audited the SFDS Development Corporation (agent), management agent for three U.S. Department of Housing and Urban Development (HUD) subsidized Section 202 elderly housing direct loan properties, in response to a complaint to the Office ofInspector General (OlG) Hotline that alleged misappropriation of HUD funds by the agent. The objective of our review was to assess the merits of the complaint. It was expanded to assess the agent's…

We reviewed the County because it received more than $19 million in NSP funds and in 2008, HUD rated the County’s HOME program as high risk. Our objectives were to determine whether the County had the capacity to effectively and efficiently administer its NSP and whether it accurately reported HOME commitments within HUD’s Integrated Disbursement and Information System (IDIS). Based on the review, the County had the capacity to…

We completed an audit of Community Development Block Grant (CDBG) program administered by the City of Paterson (City). Our audit objectives were to determine whether the City (1) disbursed CDBG funds efficiently and effectively in accordance with its submission to HUD and applicable rules and regulations and (2) had a financial management system in place to adequately safeguard the funds. The City did not always disburse CDBG funds…

We performed a review of the Lutheran Gardens Corporation (Corporation) trust fund account in response to a HUD request, dated March 30, 2009. HUD believed that as much as $2.72 million was withdrawn from a trust account in violation of a trust agreement (agreement) with HUD, dated April 22, 2005, and questioned certain disbursements. Our objective was to determine whether the Corporation withdrew and expended trust funds in…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, audited Kier Property Management and Real Estate, LLC (Kier) to determine whether Kier properly accounted for property and management agent costs and properly accomplished its occupancy functions. Kier recorded more than $2 million in notes payable in the properties’ books for notes that did not properly restrict repayment of the principal to…

We reviewed the County because it received more than $19 million in NSP funds and in 2008, HUD rated the County’s HOME program as high risk. Our objectives were to determine whether the County had the capacity to effectively and efficiently administer its NSP and whether it accurately reported HOME commitments within HUD’s Integrated Disbursement and Information System (IDIS). Based on the review, the County had the capacity to…

As part of the Office of the Inspector General’s (OIG) directive to determine whether safeguards exist to ensure that American Recovery and Reinvestment Act of 2009 (Recovery Act) funds are used for their intended purposes, we audited the Dallas Housing Authority’s (Authority) Recovery Act Public Housing Capital Fund formula grant (grant). Our objective was to evaluate the Authority’s capacity in the areas of internal controls,…

We audited the Section 8 Project-Based Voucher program operated by the State of Massachusetts, Department of Housing and Community Development (DHCD), as part of our annual audit plan. Our objective was to determine whether the DHCD properly administered its Project-Based Voucher program in compliance with U.S. Department of Housing and Urban Development (HUD) requirements. The DHCD generally administered its program in compliance…

We audited the Scranton Housing Authority (Authority) based on a referral from our Office of Investigation. Our audit objective was to determine whether the Authority followed applicable procurement regulations and used U.S. Department of Housing and Urban Development (HUD) funds properly. The Authority did not purchase goods, services and property in accordance with applicable HUD requirements, the terms of its annual consolidated…

In accordance with our goal to review and ensure the proper administration of Neighborhood Stabilization Program (NSP) funds provided under the Housing and Economic Recovery Act of 2008 (HERA) and/or the American Recovery and Reinvestment Act of 2009 (ARRA), we conducted a capacity review of the operations of the State of Maine’s (State) Department of Economic and Community Development, Office of Community Development (Department).…

The State of Arkansas (State) is scheduled to receive more than $15.67 million under the American Recovery and Reinvestment Act of 2009 (Recovery Act). As part of our organization’s commitment to ensure the proper use of Recovery Act funds, we reviewed the State’s controls and operations. Specifically, our objective was to determine whether the State has the capacity to account for Recovery Act funding and the controls to ensure…

The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General performed an audit of Leader Financial Services (Leader), a Government National Mortgage Association (Ginnie Mae) issuer servicing Federal Housing Administration (FHA)-insured loans. We initiated the audit based on the 62 percent delinquency rate of Leader’s mortgage-servicing package purchased from Fidelity Home Mortgage Corporation (Fidelity).…