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We further recommend that the Southwest Region Director of Multifamily Housing verify that the owner is providing oversight to its onsite staff and its recently implemented quality control program is working as designed and in accordance with HUD requirements.

Publication Report

2018-FW-1002 | January 30, 2018

Villa Main Apartments, Port Arthur, TX, Subsidized Nonexistent Tenants, Unsupported Tenants, and Uninspected Units

We audited the multifamily Section 8 project-based rental assistance (PBRA) program at the Villa Main Apartments.  We selected Villa Main in accordance with the Office of Inspector General’s (OIG) goal to review the U.S. Department of Housing and… more

Related Recommendations

Housing

  •   2018-FW-1002-001-A
    $534,741.00

    We recommend that the Southwest Region Director of Multifamily Housing require Villa Main Apartments owner to repay HUD $534,741 for 39 subsidized units with ineligible “ghost” tenants.

  •   2018-FW-1002-001-B
    $1,095,364.00

    We recommend that the Southwest Region Director of Multifamily Housing require Villa Main Apartments owner to provide support that the subsidized 43 units without annual physical inspections, without required EIV reports, or with missing files were eligible or repay HUD $1,095,364 for those subsidies.

  • We recommend that the Southwest Region Director of Multifamily Housing require Villa Main Apartments owner to implement appropriate controls to ensure tenants are eligible, housing assistance subsidies are accurate, and that units are inspected as required.

  • We further recommend that the Southwest Region Director of Multifamily Housing ensure that the project-based contract administrator’s review process includes steps to obtain reasonable assurance that tenants being reported as subsidized at Villa Main qualify for the program and live in the subsidized units.

General Counsel

  • Closed on July 06, 2018

    We also recommend that the Director of the HUD Departmental Enforcement Center consider whether administrative action against the appropriate owner(s) is warranted.