HUD OIG performed an audit of Mortgage Counseling Services, Inc., a Federal Housing Administration approved non-supervised lender. The review was performed based on the lender’s high default rates. The purpose of the audit was to determine whether the lender followed the U.S. Department of Housing and Urban Development’s (HUD) requirements for (1) borrower eligibility and creditworthiness and property eligibility when underwriting loans and (…

We audited the SFDS Development Corporation (agent), management agent for three U.S. Department of Housing and Urban Development (HUD) subsidized Section 202 elderly housing direct loan properties, in response to a complaint to the Office ofInspector General (OlG) Hotline that alleged misappropriation of HUD funds by the agent. The objective of our review was to assess the merits of the complaint. It was expanded to assess the agent's…

The City of Atlanta (City) received a $12.3 million Neighborhood Stabilization Program (NSP) grant from HUD that was authorized under Title III of the Housing and Economic Recovery Act. Also, the City applied for an additional $57.9 million in NSP funds under the American Recovery and Reinvestment Act of 2009. We selected the City for review due to the amount of its NSP funding and because of performance concerns identified during our…

We audited the management agent operations of the South Bronx Community Management Co., Inc. (agent), as they relate to the administration of the U.S. Department of Housing and Urban Development (HUD)-Section 202 direct loan for elderly and handicapped housing project Maria Isabel at the request of the HUD New York City Office of Multifamily Housing. The audit disclosed that the agent generally complied with HUD financial and unit maintenance…

HUD OIG performed an audit of the Housing Authority of the City of Conyers' administration of its disbursements and procurement procedures. The Georgia State Office of Public Housing requested the audit due to concerns regarding the use of its funds and violation of its procurement procedures The purpose of the audit was to determine whether the Authority used its federal funds in compliance with HUD regulations and other requirements. The…

We completed the thirteenth report in our ongoing audits of the Lower Manhattan Development Corporation’s (the auditee) administration of the $2.783 billion in Community Development Block Grant Disaster Recovery Assistance funds provided to the State of New York in the aftermath of the September 11, 2001, terrorist attacks on the World Trade Center in New York City. The auditee disbursed approximately $50.3 million of these funds during our…

We audited the City of Atlanta’s (City) HOME Investment Partnerships Program (HOME) because it has received more than $17 million in HOME funding since 2005. Our objective was to determine whether the City accurately entered commitments into the U.S. Department of Housing and Urban Development’s (HUD) Integrated Disbursement and Information System (information system) for HOME-funded activities. The City did not comply with HUD requirements…

We audited the U.S. Department of Housing and Urban Development’s (HUD) HOME Investment Partnerships Program (HOME) as part of our fiscal year 2009 annual audit plan. Our audit objectives were to assess the adequacy of HUD’s monitoring and implementation of requirements to recapture HOME funds not committed within two years and spent within five years, assess the adequacy of HUD’s monitoring and use of its Integrated Disbursement and…

We are conducting an audit of the Lackawanna Municipal Housing Authority’s (Authority) administration of its capital fund program. We selected this auditee because the Authority pledged its future capital fund appropriations to perform a special project as part of the Capital Fund Financing Program. Specifically, the Authority incurred a $4.25 million long-term liability to perform lead-based paint abatement and modernization work at 90…

HUD OIG performed an audit of the Housing Authority of the City of Newnan’s activities with its related nonprofit organization, the Newnan Housing Development Corporation. The review was performed based on concerns that the Authority encumbered its assets, used its federal funds to support nonprofit development activities, and had a conflict-of-interest transaction. The purpose of the audit was to determine whether the Authority…

We completed the twelfth report in our ongoing audits of the Lower Manhattan Development Corporation's (the auditee) administration of the Community Development Block Grant Disaster Recovery Assistance funds provided to the State of New York in the aftermath of the September 11, 2001, terrorist attacks on the World Trade Center in New York City. During our audit period, April 1 through September 30, 2008, the auditee disbursed approximately $…

We completed an audit of the City of Rome, New York's (City), administration of its economic development activity known as General Cable under its Community Development Block Grant (CDBG) program. The objectives of our audit were to determine whether the City (1) administered this economic development activity effectively, efficiently, and economically in accordance with applicable U.S. Department of Housing and Urban Development (HUD) rules…

We audited the North Hempstead Housing Authority's (Authority) administration of its Housing Choice Voucher and Family Self-Sufficiency to determine whether the Authority administered these programs in compliance with HUD regulations. The Authority properly determined Section 8 tenant eligibility and accurately calculated rental subsidies. However, the Authority improperly selected both units and tenants for project-based voucher assistance,…

We audited the Jonesboro Housing Authority's (Authority) Section 8 Housing Choice Voucher program as part of the U.S. Department of Housing and Urban Development (HUD) Office of Inspector General's (OIG) annual audit plan. Our objective was to determine whether the Authority's Section 8 housing choice voucher units met HUD standards. The Authority's Section 8 units generally met housing quality standards. Our inspection of 16 Section 8 units…

HUD OIG performed an audit of the City of Augusta's HOME Investment Partnerships program as part of the U.S. Department of Housing and Urban Development's annual audit plan. The purpose of the audit was to determine whether the City complied with HOME program requirements for monitoring (1) HOME community housing development organizations and subrecipients and (2) the use of CHDOs' proceeds. This is the second of two audit reports on the HOME…

We completed an audit of the City of Newburgh, New York's administration of its Community Development Block Grant (CDBG) program. The objectives of our audit were to determine whether the City (1) administered its CDBG program effectively, efficiently, and economically in accordance with applicable rules and regulations, and (2) expended CDBG funds for eligible activities that met a national objective of the program. The audit disclosed that…