An independent public accountant performed audits of the Willow Run (FHA no. 092-44100) and Willow Run II (FHA no. 092-35650) multifamily properties for the years 2005, 2006, 2007, and 2008 under the name of The Blackwing Group, LLC.  According to the Minnesota Board of Accountancy, neither the independent public accountant nor The Blackwing Group, LLC, had ever been licensed to perform public accounting engagements in the State of…

We audited the U.S. Department of Housing and Urban Development’s (HUD) multifamily program based on the results of our audit of Village North Apartments, Salt Lake City, UT (HUD Office of Inspector General (OIG) audit report 2017-DE-1001).  During that audit, we found indications that tenants were able to move into units and become heads of household without being put on the established waiting list.  Our objective was to determine…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited CitiMortgage’s processing of partial claims.  Our audit objective was to determine whether CitiMortgage filed for partial claims only after completing the loan modifications and reinstating the loans. CitiMortgage improperly filed for 66 partial claims before completing the loan modifications and reinstating the loans. The Federal Housing…

We audited the U.S. Department of Housing and Urban Development’s (HUD) process for ensuring that nonpayment orders adequately prevented the payment of claims on Federal Housing Administration (FHA) loans.  The audit was initiated in response to an Office of Inspector General preaudit analysis of HUD data, which determined that nonpayment orders may not always prevent claims from being paid.  Our audit objective was to determine…

We audited the County of San Diego’s Continuum of Care program funds received from the U.S. Department of Housing and Urban Development (HUD).  We audited the County because HUD had not reviewed its Continuum of Care grant program in more than 10 years and as a spinoff of an audit of a County subgrantee, Mental Health Systems, Inc. (2017-LA-1003, issued June 2, 2017).  Our audit objective was to determine whether the County…

This audit report was reissued on February 13, 2018 to correct the Combined Statement of Budgetary Resources for the period ended September 30, 2017 on page 44.  The Budget Authority and Outlays, Net section is now included. This audit report was previously reissued on November 27, 2017 to correct an error in a number reported for deobligations on page 16 from $206.9 million to $71.9 million.  The sentence was changed from “Of the $…

We audited general and application controls over selected Federal Housing Administration (FHA) information systems and the credit reform estimation and reestimation process as part of the internal control assessments required for the fiscal year 2017 financial statement audit under the Chief Financial Officer’s Act of 1990.  Our objective was to review the controls for compliance with U.S. Department of Housing and Urban Development (HUD)…

We audited the multifamily Section 8 project-based rental assistance (PBRA) program at the Villa Main Apartments.  We selected Villa Main in accordance with the Office of Inspector General’s (OIG) goal to review the U.S. Department of Housing and Urban Development’s (HUD) multifamily housing programs and because the OIG Office of Investigation conducted an investigation and suggested that the complex might not have had appropriate controls…

We audited the Jefferson Parish Community Development Department in response to a citizen complaint and in accordance with our annual audit plan to review the U.S. Department of Housing and Urban Development’s (HUD) community planning and development programs, including the Community Development Block Grant (CDBG) and HOME Investment Partnerships programs.  Our objective was to determine whether the Parish (1) ensured that payments to…

We audited Hudson County, NJ’s HOME Investment Partnerships program (HOME) as part of the activities in our annual audit plan.  We selected the County based on a risk analysis that considered the amount of funding, the risk score assigned to it by the U.S. Department of Housing and Urban Development (HUD), and our identification of potential issues.  Our objective was to determine whether the County committed and disbursed HOME funds…

The U.S. Department of Housing and Urban Development (HUD) Office of Inspector General (OIG) reviewed concerns from a complaint within HUD regarding the physical condition of HUD-insured residential care facilities (RCF).  This review is part of an ongoing effort of the Office of Inspector General (OIG).  At least 10 RCFs had received a score below 31 out of a possible 100 on their most recent Real Estate Assessment Center (…

We audited the Town of Apple Valley’s Community Development Block Grant program due to a hotline complaint (HC-2016-2372) alleging that the Town did not use its program funds in accordance with U.S. Department of Housing and Urban Development (HUD) program regulations and requirements.  Specifically, the complainant wrote a letter to the previous HUD Secretary alleging that the Town misused program funds.  Our audit objective was to…

We audited the Yabucoa Volunteers of America Elderly Housing, Inc., Section 202 Supportive Housing for the Elderly Program.  We selected the Yabucoa housing project for review based on concerns regarding the slow progress of the project as noted during the audit of the Puerto Rico Department of Housing multifamily special escrow funds.  The objective of this audit was to determine whether Volunteers used Section 202 funds in…

We audited the Municipality of San Juan’s Emergency Solutions Grant (ESG) program.  We selected the Municipality for review as part of our strategic plan based on the large amount of ESG funds approved and because the U.S. Department of Housing and Urban Development (HUD) classified the Municipality as a high-risk grantee in its 2016 risk assessment.  Our main objective was to determine whether the Municipality administered its ESG…

We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of grants funded through its resident home-ownership program under the Low-Income Housing Preservation and Resident Homeownership Act of 1990, based on the results we reported for HUD’s program grants for Carmen-Marine Apartments (2015-CH-1010) and West Park Place Condominium (2016-CH-1009) and the preliminary results of our audit of HUD’s program grant for…

We audited the Commonwealth of Kentucky’s (Commonwealth) administration of the U.S. Department of Housing and Urban Development’s (HUD) Neighborhood Stabilization Program (NSP) based on a referral from the Louisville, KY, Office of Community Planning and Development and in accordance with our annual audit plan.  Our objective was to determine whether the Commonwealth administered its NSP1 and NSP3 grants in accordance with HUD’s…

Reissued 11/27/17 The subject report has been reissued to correct the memorandum number.  This reissued memorandum now correctly shows the report number.The number was corrected from 2018-AT-0801 to 2018-AT-1801. The purpose of this memorandum is to provide time-sensitive information regarding the Office for the Socioeconomic and Community Development’s (ODSEC) proposed framework for the administration of the Community…

We audited the Federal Housing Administration-insured nursing home, Riverside Health and Rehabilitation Center (the project), of East Hartford, CT, based on our risk assessment of nursing homes in the New England region.  Additionally, the U.S. Department of Housing and Urban Development (HUD) identified the project as potentially troubled as of January 9, 2017, and four physical inspections performed by HUD’s Real Estate Assessment Center…

We audited DuPage County’s Community Development Block Grant Disaster Recovery program.  The audit was part of the activities in our fiscal year 2017 annual audit plan.  We selected the County’s program for review because the County had spent the most program funds authorized under the Disaster Relief Appropriations Act of 2013 in Region 5’s jurisdiction.[1]  Our objective was to determine whether the County administered its…

We audited Mary Scott Nursing Center (project) based on our analysis of risk factors related to the U.S. Department of Housing and Urban Development’s (HUD) multifamily nursing projects in Region 5’s jurisdiction (States of Illinois, Indiana, Michigan, Minnesota, Ohio, and Wisconsin).  The audit was part of the activities in our fiscal year 2017 annual audit plan.  Our objective was to determine whether the project’s owner and…