The Housing Authority of the County of San Bernardino, San Bernardino, CA, Used Shelter Plus Care Program Funds for Ineligible and Unsupported Participants
We audited the Housing Authority of the County of San Bernardino’s Shelter Plus Care program due to a public complaint alleging that the Authority disregarded U.S. Department of Housing and Urban Development (HUD) program requirements related to participants’ eligibility. Our objective was to determine whether the Authority administered its program funds in accordance with HUD rules and requirements, specifically related to participants’…
May 28, 2015
Report
#2015-LA-1004
Sutton Irvine Residence, Inc., Irvine, CA, Did Not Operate Its Section 202 - Funded Project in Accordance With HUD Rules and Requirements
We audited Sutton Irvine Residence, Inc.’s Section 202-funded project based on concerns expressed by the U.S. Department of Housing and Urban Development’s (HUD) Office of General Counsel, Departmental Enforcement Center, regarding the management of the project. The concern was that Sutton Irvine had defaulted on its mortgage payments to HUD and may have diverted project funds for nonproject expenses. Our audit objective was to…
April 23, 2015
Report
#2015-LA-1003
Veterans First, Santa Ana, CA, Did Not Administer and Spend Its HUD Funding in Accordance With HUD Requirements
We audited Veterans First’s Supportive Housing Program (SHP) based on a referral from the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General’s Office of Investigation and a hotline complaint, alleging that Veterans First employees were directed to prepare false accounting documents. Our objective was to determine whether expenditures Veterans First charged to its SHP grants and program fees it charged to…
April 15, 2015
Report
#2015-LA-1002
The Oakland Housing Authority Complied With HUD Requirements on the Use of Housing Choice Voucher Exception Payment Standards
The U. S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), conducted a limited review of the Oakland Housing Authority’s Moving to Work Housing Choice Voucher program’s use of exception payment standards exceeding the Authority’s 110 percent limit on fair market rents. The review was initiated as a result of a congressional request alleging fraud, waste, and abuse by public housing agencies…
April 14, 2015
Memorandum
#2015-LA-1801
New Image Emergency Shelter, Long Beach, CA, Did Not Adequately Support HOPWA Salary and Operating Expenses
We audited New Image Emergency Shelter’s Housing Opportunities for Persons With AIDS (HOPWA) program based on a referral from the U.S. Department of Housing and Urban Development, Office of Inspector General’s (HUD OIG) Office of Investigation and a citizen complaint, alleging that New Image lacked adequate documentation to support program expenditures and employee salaries. Our objective was to determine whether New Image administered and…
January 28, 2015
Report
#2015-LA-1001
The City of Los Angeles, CA, Did Not Always Ensure That Community Development Block Grant-Funded Projects Met National Program Objectives
We initiated a review of the City of Los Angeles’ Community Development Block Grant (CDBG) program due to concerns that CDBG-funded assets may be at risk. We performed our review to address questionable costs identified during a prior Office of Inspector General review (audit report 2014-LA-0001). Our objective was to determine whether the City maintained the required documentation for its CDBG-funded projects to support its vested…
September 28, 2014
Report
#2014-LA-1007
Final Civil Action – Reunion Mortgage, Inc. Settled Allegations of Making False Claims to the Federal Housing Administration
We assisted the U.S. Attorney’s Office of the Northern District of California in the civil investigation of Reunion Mortgage, Inc. (Reunion). Reunion is a former Federal Housing Administration (FHA)-approved mortgage lender, with its principal place of business located in Milpitas, CA. Based in large part on our review of loans underwritten by Reunion between December 2007 through October 2009, the U.S. Attorney’s Office filed a…
September 24, 2014
Memorandum
#2014-CF-1810
Final Civil Action – Judgment Imposed on Loan Officer Regarding Allegations of Making a False Certification to HUD for a Home Purchase Under the Federal Housing Administration Program
We conducted a civil fraud review of an alleged loan origination fraud scheme involving a loan officer that assisted a borrower to purchase a home under the U.S. Department of Housing and Urban Development (HUD), Federal Housing Administration (FHA) program. The alleged scheme involved submitting a false loan application and other documentation to obtain an FHA-insured loan on a home in Brentwood, CA. Based in part on OIG’s review,…
September 24, 2014
Memorandum
#2014-CF-1809
The City of Pomona, CA, Did Not Administer Its Neighborhood Stabilization Program in Accordance With HUD Rules and Requirements
We audited the City of Pomona’s Neighborhood Stabilization Programs (NSP1 and NSP3). We initiated the audit because of a hotline complaint with concerns regarding the administration of program funds. Our objective was to determine whether the City administered its NSP funds in accordance with applicable U.S. Department of Housing and Urban Development (HUD) rules and requirements. Specifically, we wanted to determine whether…
September 24, 2014
Report
#2014-LA-1006
Final Civil Action – NDC Real Estate Management, Inc. Settled Allegations of Falsifying or Modifying Records and Documents to Maximize HUD’s Section 8 Housing Assistance Payments
We assisted the U.S. Attorney’s Office for the Eastern District of Kentucky in the investigation of NDC Real Estate Management, Inc. (NDC). The investigation began due to a qui tam filing in the U.S. District Court for the Eastern District of Kentucky. The False Claims Act allows private persons to file suit for violations of the False Claims Act on behalf of the Government. A suit filed by an individual on behalf of the…
September 01, 2014
Memorandum
#2014-CF-1808