We audited the Jersey City Housing Authority's (Authority) administration of its capital fund programs. We selected the Authority because of the size of its capital fund programs and because of its US, Department of Housing and Urban Development (HUD) risk rating. Our audit objectives were to determine whether the Authority (I) obligated and expended funds under the Public Housing Capital Fund program (CFP) and Capital Fund Financing…

We conducted a review of Federal Housing Administration (FHA) loans underwritten by Security Atlantic Mortgage Company, Inc. (Security Atlantic), an FHA direct endorsement lender. This review was conducted as part of the Office of Inspector General’s (OIG) Operation Watchdog initiative to review the underwriting of 15 direct endorsement lenders at the suggestion of the FHA Commissioner. The Commissioner expressed concern regarding the…

We audited the Harrisburg Housing Authority’s (Authority) procurement function. We audited the Authority because a previous audit conducted in 2007 indicated that there was weakness in its purchasing process. Our objective was to determine whether the Authority procured goods and services in accordance with U.S. Department of Housing and Urban Development (HUD) regulations and other applicable requirements. We found that the Authority did not…

We audited the Philadelphia Housing Authority’s (Authority) administration of its housing quality standards inspection program for its Section 8 Housing Choice Voucher program as part of our fiscal year 2010 audit plan. The audit objective addressed in this report was to determine whether the Authority ensured that its program units met the U.S. Department of Housing and Urban Development’s (HUD) housing quality standards. The Authority did…

We completed an audit of the City of Jersey City’s (City) Community Development Block Grant (CDBG) float loan activity. Our audit objective was to determine whether the City ensured that CDBG funds used for the float loan complied with applicable rules and regulations. The City did not comply with applicable regulations and failed to take timely action when the float loan defaulted. Specifically, it did not (1) make a good faith effort to…

We audited the Harrisburg Housing Authority’s (Authority) administration of its Public Housing Capital Fund grant that it received under the American Recovery and Reinvestment Act of 2009 (Recovery Act). We selected the Authority for audit because the U.S. Department of Housing and Urban Development (HUD) awarded the Authority a $4.4 million formula grant. Our audit objective was to determine whether the Authority administered the grant funds…

We audited the Housing Authority of the City of Pottsville, PA’s (Authority) capital fund grant that it received under the American Recovery and Reinvestment Act of 2009 (Recovery Act). On March 18, 2009, the U.S. Department of Housing and Urban Development (HUD) awarded the Authority a $992,895 grant under the Recovery Act for its public housing capital fund program. Our audit objective was to determine whether the Authority administered its…

We audited Infinity Home Mortgage Company, Inc. (Infinity Home Mortgage), a nonsupervised lender approved to originate Federal Housing Administration (FHA) single-family mortgage loans. We selected Infinity Home Mortgage because its default rate for the State of Pennsylvania was significantly higher than the average default rate for the State. Our objective was to determine whether Infinity Home Mortgage complied with U.S. Department of Housing…

We completed an audit of the City of Jersey City's (City) capacity to administer Community Development Block Grant (CDBG) funding provided under the American Recovery and Reinvestment Act of 2009 (Recovery Act). Our objectives were to evaluate the City’s capacity in the areas of internal controls, eligibility, financial controls, procurement, and output/outcomes in administering CDBG funds. The City generally had adequate financial…

We completed an audit of Community Development Block Grant (CDBG) program administered by the City of Paterson (City). Our audit objectives were to determine whether the City (1) disbursed CDBG funds efficiently and effectively in accordance with its submission to HUD and applicable rules and regulations and (2) had a financial management system in place to adequately safeguard the funds. The City did not always disburse CDBG funds efficiently…

We audited the Scranton Housing Authority (Authority) based on a referral from our Office of Investigation. Our audit objective was to determine whether the Authority followed applicable procurement regulations and used U.S. Department of Housing and Urban Development (HUD) funds properly. The Authority did not purchase goods, services and property in accordance with applicable HUD requirements, the terms of its annual consolidated contributions…

We completed an audit of Ark Mortgage, Incorporated (Ark Mortgage), a nonsupervised direct endorsement lender located in North Brunswick, New Jersey. The audit objectives were to determine whether Ark Mortgage officials (1) originated insured loans in accordance with U.S. Department of Housing and Urban Development/Federal Housing Administration (HUD/FHA) requirements and (2) developed and implemented a quality control plan that complied with…

We completed an audit of Jersey Mortgage Company (Jersey Mortgage), a nonsupervised lender located in Cranford, New Jersey. The audit objectives were to determine whether Jersey Mortgage (1) approved Federal Housing Administration (FHA)-insured loans in accordance with the requirements of the U.S. Department of Housing and Urban Development (HUD)/FHA, which include adherence to prudent lending practices, and (2) developed and implemented a…

We audited the Philadelphia Housing Authority’s (Authority) administration of its housing assistance payments for leased housing under its Moving to Work Demonstration program as part of our fiscal year 2009 audit plan. This is the first of two audit reports that we plan to issue on the Authority’s leased housing program. The audit objective addressed in this report was to determine whether the Authority maintained adequate documentation to…

We audited the City of Altoona, Pennsylvania’s (City), Community Development Block Grant (CDBG) program based on a citizen complaint. Our audit objective was to determine if the City properly paid a subrecipient for eligible CDBG activities. We found that the City paid a subrecipient $914,335 for CDBG activities that it could not demonstrate were eligible. The City could not demonstrate that it paid a subreicipient for eligible activities that…

We audited the City of Altoona, Pennsylvania’s (City) capacity to administer funds it receives under the American Recovery and Reinvestment Act of 2009 (Recovery Act). The City will receive $1.3 million in Recovery Act funds to carry out Community Development Block Grant and Homelessness Prevention Rapid Re-Housing activities. Our objective was to determine whether the City had adequate capacity and controls to adequately administer its Recovery…

We audited the City of Bethlehem, Pennsylvania’s (City) community planning and development program. On March 6, 2009, the U.S. Department of Housing and Urban Development (HUD) awarded the City $1.1 million under the American Recovery and Reinvestment Act of 2009 (Recovery Act) for its community planning and development program. The U.S. Office of Management and Budget directed the Inspectors General to perform audits to ensure that funds…

We audited the Housing Authority of the City of York’s (Authority) administration of its housing quality standards inspection program for its Section 8 Housing Choice Voucher program as part of our fiscal year 2009 audit plan. The audit objective was to determine whether the Authority ensured that its program units met the U.S. Department of Housing and Urban Development’s (HUD) housing quality standards. The Authority did not ensure that its…

We audited the City of Reading's (City) asset control area program as part of a nationwide audit of the U.S. Department of Housing and Urban Development's (HUD) monitoring of program participants. Our objective was to determine whether the City administered its asset control area program in compliance with HUD requirements. We focused our review on whether the City complied with specific requirements in its asset control area agreement…

We completed an audit of the Union County Consortium's (County) administration of its Community Development Block Grant (CDBG) program to determine whether the County (1) disbursed CDBG funds efficiently and effectively in accordance with its submission to HUD and in compliance with HUD rules and regulations, (2) maintained a financial management system to adequately safeguard funds, and (3) established adequate controls to ensure that…