HUD OIG has released its latest Semiannual Report to Congress, highlighting oversight work conducted from October 1, 2025, through March 31, 2026.The report reflects HUD OIG’s continued efforts to strengthen HUD programs, protect taxpayer dollars, and promote accountability through investigations, audits, evaluations, and oversight initiatives across the country.Highlights from the reporting period include:• $43 million in audit collections•…

We audited the U.S. Department of Housing and Urban Development (HUD), Federal Housing Administration (FHA) Claims Without Conveyance of Title (CWCOT) program.  We selected this review to assist HUD in recovering improper payments and to reduce the risk of losses to the FHA insurance fund. The objective of our audit was to assess whether HUD is appropriately demanding and collecting improper payments identified for CWCOT loans by its…

Our office is currently conducting three audits of crime prevention and eligibility determinations at Public Housing Authorities (PHA) in Washington, DC; Chicago; and Los Angeles.  The objective of our audits is to (1) determine whether the Authority complied with HUD’s and its own requirements for verifying eligibility of individuals for HUD-assisted housing based on criminal activity, citizenship, and immigration status, and (2) evaluate…

The U.S. Department of Housing and Urban Development (HUD) Office of Inspector General (OIG) conducted an evaluation of the operational effectiveness of information technology (IT) security controls for the HUDUSER system, which is operated by HUD’s Office of Policy Development and Research (PD&R).  The OIG identified four significant weaknesses involving website security, underscoring the need to strengthen technical security controls…

We conducted an audit on the effectiveness of the U.S. Department of Housing and Urban Development’s (HUD) Home Equity Conversion Mortgage (HECM) program’s Life Expectancy Set Asides (LESA).  The LESA is a set aside portion of the HECM mortgage that makes property tax, hazard insurance, and flood insurance payments on behalf of certain financially vulnerable borrowers.  While not guaranteed, the LESA funds are intended to last for the…

As part of our mission to safeguard the U.S. Department of Housing and Urban Development’s (HUD) programs from fraud, waste, and abuse, and to identify opportunities for HUD programs to progress and succeed, we selected Colorado for a review of potential improper payments.  Our audit objective was to determine whether Colorado made improper non-Federal match activity payments.  We also assessed whether the Office of Community Planning…

We found that the photovoltaic systems (PV) and water tanks installed in participant’s homes had deficiencies.  Such deficiencies included inverters and batteries with signs of rust; water intrusion that could lead to electrical shorts; electrical conduits that were degrading due to direct exposure to the sun; electrical conduits with water; and water tanks that were leaking, overflowing, or both.  Based on statistical projections, at…

We audited the U.S. Department of Housing and Urban Development (HUD), Office of Residential Care Facilities’ (ORCF), oversight of Section 232 residential care facilities’ mortgage insurance program.  We performed this audit because HUD-insured residential care facility loan defaults were rising.  As of June 2024, 167 of the 3,670 HUD-insured Section 232 borrowers, or nearly 5 percent, defaulted on their mortgages.  These 167…

We audited the Government National Mortgage Association’s (Ginnie Mae) management of its portfolio of federally guaranteed mortgage-backed securities (MBS).  We initiated this audit because of our internal monitoring of the Ginnie Mae portfolio as well as the issuance of a Financial Stability Oversight Council report in 2024 on the rising risks presented by nonbank mortgage companies.  Our audit objective was to assess Ginnie Mae's…

Fraud poses a significant risk to the integrity of federal programs and erodes public trust in government.  For the U.S. Department of Housing and Urban Development’s (HUD) disaster recovery programs, fraud results in communities and individuals not receiving needed assistance to recover from and mitigate future disasters.  Departments are required by law to develop and maintain governance structures, controls, and processes to…

In August 2024, we issued an audit report on the California Department of Housing and Community Development’s (HCD) fraud risk management practices, finding that HCD was not adequately prepared to prevent, detect, and respond to fraud due to the lack of focus it placed on fraud risks and establishing a robust fraud risk management framework for the Coronavirus Aid, Relief, and Economic Security Act (CARES) Act funding for the Emergency Solutions…

We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of the Moving to Work (MTW) demonstration program.  We also reviewed three of the 39 initial MTW public housing agencies (PHA) for compliance with the MTW program’s statutory requirements.  We selected the three PHAs for review based on our analysis of risk factors for initial MTW PHAs.  Our objective was to (1) assess HUD’s monitoring of initial MTW…

We recently issued an audit report on the City and County of Honolulu’s (City) fraud risk management practices, which determined the grantee did not adequately develop a fraud risk management framework for the Coronavirus Aid, Relief, and Economic Security (CARES) Act funding provided for the Emergency Solutions Grant (ESG) program to prevent, detect, and respond to fraud (Audit Report No. 2024-LA-1002, issued August 6, 2024). This audit follows…

We have reviewed the U.S. Department of Housing and Urban Development’s (HUD’s) Detailed Accounting Report and the related management assertions for National Drug Control Program activities for the fiscal year ended September 30, 2025. We also reviewed the Budget Formulation Compliance Report, which includes budget formulation information for fiscal year 2027, and the related management assertions for National Drug Control Program activities.…

Beginning in 2021, the U.S. Department of Housing and Urban Development (HUD) Office of Inspector General (OIG) conducted several audits to assess HUD’s anti-fraud efforts and to develop inventories of fraud risks for several of its programs.  Our previous work found that HUD’s fraud risk management program was in its early stages of development and we recommended that HUD perform program-specific fraud risk assessments and incorporate…

We audited the U.S. Department of Housing and Urban Development’s (HUD) Office of Single Family Housing’s efforts to increase the supply of affordable housing.  Our audit objective was to determine whether HUD met its intended outcome to increase the supply of affordable housing to owner-occupants, governmental entities, and HUD-approved non-profits by expanding the exclusive listing periods for its Real Estate Owned (REO) properties and…

The following is the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General’s (OIG) Annual Work Plan (AWP) for Fiscal Year (FY) 2026. The OIG conducts audits and evaluations to prevent and detect fraud and abuse and promote the economy, efficiency, and effectiveness of HUD’s programs and operations. The AWP highlights audits and evaluations the OIG will initiate in FY 2026, as well as ongoing projects that…

We contracted with the independent public accounting firm of Sikich CPA LLC to audit the financial statements of FHA as of and for the fiscal year ending September 30, 2025, and to provide reports on FHA’s (1) internal control over financial reporting and (2) compliance with laws, regulations, contracts, and grant agreements and other matters.  Our contract with Sikich required that the audit be performed in accordance with U.S. generally…

We audited the U.S. Department of Housing and Urban Development’s (HUD) Office of Lead Hazard Control and Healthy Homes’ (OLHCHH) oversight of Lead-Based Paint Hazard Control (LBPHC) and Lead Hazard Reduction Demonstration (LHRD) grant programs.  These programs help reduce lead hazards in low-income households, particularly with young children.  Between fiscal years 2020 and 2022, OLHCHH awarded more than $353 million in competitive…

Beginning in 2021, the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG) conducted several audits to assess HUD’s anti-fraud efforts and to develop inventories of fraud risks for several of its programs.  Our previous work found that HUD’s fraud risk management program was in its early stages of development and we recommended that HUD perform program-specific fraud risk assessments and incorporate…