Improve its procedures for detecting and sanctioning improper voluntary terminations.
2017-KC-0003 | May 21, 2017
HUD Did Not Ensure That Lenders Properly Processed Voluntary Terminations of Insurance Coverage on FHA Loans and Disclosed All Implications of the Terminations to the Borrowers
Housing
- Status2017-KC-0003-001-COpenClosedClosed on December 05, 2019
- Status2017-KC-0003-002-AOpenClosed$285,215Funds Put to Better Use
Recommendations that funds be put to better use estimate funds that could be used more efficiently. For example, recommendations that funds be put to better use could result in reductions in spending, deobligation of funds, or avoidance of unnecessary spending.
Closed on September 30, 2021Update Handbook 4000.1 to require the voluntary termination of insurance consent form to include an explanation that voluntary termination differs from mortgage insurance premium cancellation and the disclosure of any outstanding partial claims to put $285,215 to better use.
2017-PH-1003 | May 21, 2017
The Yorkville Cooperative, Fairfax, VA, Did Not Administer Its HUD-Insured Property and Housing Assistance Contract According to Applicable Requirements
Housing
- Status2017-PH-1003-001-AOpenClosed$970,381Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
Closed on August 05, 2025Provide documentation to show that prices paid for purchases of products and services totaling $970,381 were fair and reasonable or reimburse the project from nonproject funds for any amounts that were not fair and reasonable.
- Status2017-PH-1003-001-BOpenClosed$716,693Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
Closed on October 26, 2022Provide documentation to show that payments for work totaling $716,693 complied with applicable building codes or reimburse the project from nonproject funds for payments that did not comply with the codes and take action to bring the work up to code.
- Status2017-PH-1003-001-COpenClosed$163,885Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
Closed on September 08, 2022Provide documentation to support payments totaling $163,885 or reimburse the project from nonproject funds for payments that it cannot support.
- Status2017-PH-1003-001-DOpenClosedClosed on September 24, 2019
Develop and implement written procedures to ensure that it obtains written cost estimates as required and maintains complete documentation to support expenditures and that contractors performing or managing construction, removal, repair, or improvement work are properly licensed as required.
- Status2017-PH-1003-002-AOpenClosed$296,787Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
Closed on September 24, 2019Reimburse the project $296,787 from nonproject funds for the ineligible legal expenses.
- Status2017-PH-1003-002-BOpenClosed$3,892Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
Closed on September 24, 2019Reimburse HUD $3,892 from nonproject funds for the overpayment of housing assistance.
- Status2017-PH-1003-002-COpenClosedClosed on May 20, 2021
Correct the errors in the tenant files identified during the audit.
2017-FW-1006 | April 25, 2017
The Housing Authority of the City of Jasper, TX, Did Not Operate Its Public Housing Programs in Compliance With HUD’s Requirements
General Counsel
- Status2017-FW-1006-001-KOpenClosedClosed on August 27, 2019
We recommend that the Director, Departmental Enforcement Center take appropriate administrative sanctions, including suspension, limited denial of participation, or debarment against the executive director.
- Status2017-FW-1006-001-LOpenClosedClosed on August 21, 2017
We recommend that the Director, Departmental Enforcement Center seek civil money penalties, as appropriate, against the executive director.
- Status2017-FW-1006-001-MOpenClosed$10,000Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
Closed on July 02, 2020We recommend that the Associate General Counsel for Program Enforcement determine legal sufficiency and, if legally sufficient, pursue remedies under the Program Fraud Civil Remedies Act against the executive director.
2017-BO-1005 | April 20, 2017
Health Concepts Ltd’s., Providence, RI Service Charges at FHA-Insured Nursing Homes Did Not Always Comply With Management Agreements.
Housing
- Status2017-BO-1005-001-AOpenClosedClosed on November 21, 2018
Develop and implement adequate controls over payments for services that are part of the management fee.
- Status2017-BO-1005-001-BOpenClosedClosed on December 17, 2018
Amend and resubmit the management agreements and the management certifications for HUD approval and ensure that the agreements do not conflict with the management certifications.
- Status2017-BO-1005-001-COpenClosedClosed on February 25, 2019
Identify all unallowable fees and reimburse from non-project funds.
2017-CH-1801 | March 30, 2017
Judgment Imposed on the Former President and Founder of MDR Mortgage Corporation Regarding Allegations of Failing To Comply With HUD’s Federal Housing Administration Requirements
General Counsel
- Status2017-CH-1801-001-AOpenClosed$3,452,499Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
Closed on October 11, 2019Acknowledge that the judgment awarded $10,373,998 against the former president and founder of MDR Mortgage to the U.S. Government, of which HUD’s loss totaled $3,452,499.
2017-CF-1803 | March 28, 2017
Final Civil Action – United Shore Financial Services, LLC, Settled Allegations of Failing To Comply With HUD’s Federal Housing Administration Loan Requirements
General Counsel
- Status2017-CF-1803-001-AOpenClosed$45,000,000Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
Closed on March 23, 2023Acknowledge that $45 million in the attached settlement agreement represents an amount due HUD, less the Department of Justice’s civil debt collection fees.
2017-PH-1002 | March 23, 2017
The Owner of Laurentian Hall Apartments, Pittsburgh, PA, Did Not Always Manage Its HUD-Mortgaged Project in Accordance With HUD Requirements
Housing
- Status2017-PH-1002-001-AOpenClosed$282,578Funds Put to Better Use
Recommendations that funds be put to better use estimate funds that could be used more efficiently. For example, recommendations that funds be put to better use could result in reductions in spending, deobligation of funds, or avoidance of unnecessary spending.
Closed on January 29, 2020Pay the project $282,578 from non-project funds for the fair value of the commercial rent not collected from the lessees.
- Status2017-PH-1002-001-BOpenClosed$36,858Funds Put to Better Use
Recommendations that funds be put to better use estimate funds that could be used more efficiently. For example, recommendations that funds be put to better use could result in reductions in spending, deobligation of funds, or avoidance of unnecessary spending.
Closed on June 09, 2020Request approval from HUD to lease the commercial space. If HUD approves the request, then execute a lease at fair market rent thereby increasing the project’s rent revenue by at least $36,858 per year.
- Status2017-PH-1002-001-COpenClosed$31,769Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
Closed on January 31, 2020Request approval from HUD for the $31,769 in project operating funds spent on building improvements or repay the project from nonproject funds for any amount not approved.