U.S. flag

An official website of the United States government Here’s how you know

The .gov means it’s official.

Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you're on a federal government site.

The site is secure.

The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.

At the request of the Region X Multifamily Hub, we audited the John C Cannon Retirement and Assisted Living Residence (project) to determine if the project owner used project funds in accordance with the regulatory agreement. We found that the project owner failed to get HUD approval for leases costing $189,000, used project funds to obtain unneeded equipment costing $10,700, and failed to keep adequate documentation to support expenditures costing $317,000.

We recommend that the Director, Office of Insured Health Care Facilities, require the owner to repay the amount spent for the unapproved leases and unnecessary equipment. We also recommend the Director, Office of Insured Health Care Facilities, require the project owner to provide documentation supporting expenses paid for with project funds. Further, we recommend the Regional Counsel pursue double damages remedies, civil money penalties, and/or administrative sanctions, as appropriate, against the former administrator and the board of directors.