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The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted HUD’s Office of General Counsel, Office of Program Enforcement, in the civil investigation of Southern Blvd I, L.P.  The owner executed a housing assistance payments contract for a 73-unit multifamily housing development named Southern Blvd I located in Bronx, NY.  The project received HUD project-based Section 8 assistance for 72 of these units.

On May 17, 2016, the Office of Program Enforcement issued a letter with a notice of intent to file legal action under the Program Fraud Civil Remedies Act of 1986 against Southern Blvd I, L.P., in connection with its participation in the project-based Section 8 Program.  The Government alleged that between 2013 and 2014, Southern Blvd I, L.P., violated HUD requirements in at least three ways:  it failed to verify assets and income, it failed to transfer overhoused tenants, and it failed to use or document the use of HUD’s EIV system.

On September 27, 2017, Southern Blvd I, L.P., entered into an agreement with the Federal Government to pay $40,000 to settle the false certification allegations.  The settlement agreement was not an admission of liability or fault on the part of any party.


Key Details
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Funds Put to Better Use
Funds 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.

Questioned Costs
Questioned 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.


Sensitive information refers to information that could have a damaging import if released to the public and, therefore, must be restricted from public disclosure.


We believe these open recommendations, if implemented, will have the greatest impact on helping HUD achieve its mission to create strong, sustainable, inclusive communities and quality affordable homes for all.

General Counsel

  •   2018-CF-1803-001-A

    Closed on March 30, 2018

    Acknowledge that $40,000 in the attached settlement represents an amount due HUD.