We audited the New Brunswick Housing Authority because it was classified as a troubled public housing agency and based on our risk analysis of public housing agencies located in the State of New Jersey.  The objective of the audit was to determine whether the Authority administered its operating and capital funds in accordance with U.S. Department of Housing and Urban Development (HUD) requirements. We found that the Authority did not…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted the U.S. Department of Justice (DOJ) and the U.S. Attorney’s Office for the Southern District of New York in a civil investigation of Residential Home Funding Corp.  Residential Home is a Federal Housing Administration (FHA)-approved mortgage lender having its principal place of business in White Plains, NY. On September 18, 2017,…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited Majestic Management, LLC’s management agent activities for the public housing program at the East St. Louis Housing Authority.  Our objective was to determine whether Majestic Management made only eligible and supported payments for payroll, complied with procurement requirements, and properly performed initial tenant certifications and annual…

We audited the City of New York’s Community Development Block Grant Disaster Recovery-funded Public Housing Rehabilitation and Resilience Program.  Our objective was to determine whether the City had established adequate controls to ensure that it followed U.S. Department of Housing and Urban Development (HUD), Federal, and City requirements when disbursing disaster funds under its program.  We found that the City generally had…

We audited MB Financial Bank, a Federal Housing Administration (FHA)-approved direct endorsement lender, as part of our efforts to protect the integrity of the U.S. Department of Housing and Urban Development’s (HUD) single-family housing mortgage insurance programs.  We selected MB Financial for review based on an analysis of underwriting and default data maintained by HUD.  Our objective was to determine whether MB Financial…

We audited the State of New York’s Community Development Block Grant Disaster Recovery-funded Non-Federal Share Match Program.  We conducted this audit because the State had used approximately $223 million for the program as of December 2016 and a U.S. Department of Housing and Urban Development (HUD) review of the program had identified weaknesses related to compliance monitoring and recordkeeping.  Our objective was to determine…

We audited the U.S. Department of Housing and Urban Development’s (HUD) resident home-ownership program grant for Lakeview East Cooperative (project) based on the results of a risk assessment of multifamily housing programs 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 audit plan.  Our objective was to determine whether…

We audited the Stone Terrace Apartments’ Section 8 housing assistance payments program based on a citizen’s complaint alleging mismanagement of its housing assistance payments contract.  The audit was part of the activities in our fiscal year 2017 annual audit plan.  Our audit objective was to determine whether the management agent administered the project’s program in accordance with the owner’s contract with the U.S. Department of…

We audited Alpine First Preston Joint Venture II, LLC, a contracted asset manager in HUD’s real estate-owned Management and Marketing III program, as part of the activities included in our 2017 annual audit plan and because it was the sole contractor to market and sell U.S. Department of Housing and Urban Development (HUD) owned properties located in Illinois. Our audit objective was to determine whether Alpine complied with its contract with…

We performed the 21st review of the Lower Manhattan Development Corporation’s (LMDC) administration of the $2.783 billion in Community Development Block Grant (CDBG) Disaster Recovery funds awarded 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 objective of the audit was to determine whether LMDC disbursed CDBG Disaster Recovery funds in accordance…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), in coordination with the U.S. Department of Justice’s Civil Division and the U.S. Attorney’s Office for the Northern District of Illinois’ Eastern Division, conducted a joint review of the former president and founder of MDR Mortgage Corporation. MDR Mortgage provided annual verifications to HUD in 2006, 2007, and 2008, certifying that none of its…

We reviewed Seneca Mortgage’s servicing of Federal Housing Administration (FHA)-insured mortgages and its implementation of the U.S. Department of Housing and Urban Development’s (HUD) Loss Mitigation program.  We selected Seneca Mortgage based on the results of our single-family risk assessment.  The objective of the audit was to determine whether Seneca Mortgage complied with HUD’s Loss Mitigation program requirements and…

We completed a review of the New Rochelle Municipal Housing Authority’s administration of its public housing program.  We selected the Authority based on a management request from the U.S. Department of Housing and Urban Development’s (HUD) New York Office of Public Housing.  The Authority was designated as a troubled housing authority and had indicators of noncompliance with program requirements, such as using program funds to pay…

We completed a review of the City of New York, Office of Management and Budget’s administration of the Interim Assistance Rapid Repairs Program, funded with Community Development Block Grant Disaster Recovery (CDBG-DR) funds provided by the U.S. Department of Housing and Urban Development (HUD) to assist in the disaster recovery and rebuilding efforts resulting from Hurricane Sandy.  The objective of the audit was to determine whether City…

(REISSUED February 17, 2017) We audited the Town of Amherst’s Housing Choice Voucher program administered through a contractor, Belmont Housing Resources for Western New York, to address our audit plan priority to ensure that the U.S. Department of Housing and Urban Development’s (HUD) public and Indian housing programs are sufficiently administered by public housing agencies (PHA).  We selected this auditee based on a risk analysis of…

We audited the Tarrytown Municipal Housing Authority’s administration of its public housing program based on an Office of Inspector General risk assessment.  The objectives of the audit were to evaluate the Authority’s financial controls to determine whether (1) U.S. Department of Housing and Urban Development (HUD) funds were used for eligible, reasonable, and supported expenses and (2) adequate financial controls were maintained to…

We completed a review of the City of New York, Mayor’s Office of Housing Recovery Operations’ administration of the Build it Back Single Family Program, funded with Community Development Block Grant Disaster Recovery (CDBG-DR) funds provided by the U.S. Department of Housing and Urban Development (HUD) to assist in the disaster recovery and rebuilding efforts resulting from Hurricane Sandy.  The objective of the audit was to determine…

We audited the U.S. Department of Housing and Urban Development’s (HUD) resident home-ownership program grant for West Park Place Condominium (project) based on the results of a risk assessment of multifamily housing programs in Region 5’s jurisdiction (States of Illinois, Indiana, Michigan, Minnesota, Ohio, and Wisconsin) and the activities in our fiscal year 2016 annual audit plan.  Our objective was to determine whether the West Park…

We audited Mortgage Services III, LLC, a Federal Housing Administration (FHA)-approved direct endorsement lender, as part of the activities in our fiscal year 2016 annual audit plan.  We selected Mortgage Services for review based on an analysis of data in the U.S. Department of Housing and Urban Development’s (HUD) Single Family Data Warehouse system  for single-family lenders with home offices in Region 5’s jurisdiction. …

We audited Folts, Inc.’s management of the Folts Adult Home and Folts Home projects to address our concern with U.S. Department of Housing and Urban Development (HUD)-assisted health care facilities.  We selected this auditee as the result of a risk assessment of nursing homes located in New York State, which considered HUD’s risk indicators and factors such as loan default; internal control issues; and financial statements not being filed…