HUD’s Office of Community Planning and Development’s (CPD) Coronavirus Aid, Relief, and Economic Security Act, Emergency Solutions Grants (ESG-CV) program
HUD OIG is reviewing HUD’s Office of Community Planning and Development’s (CPD) Coronavirus Aid, Relief, and Economic Security Act, Emergency Solutions Grants (ESG-CV) program. The CARES Act provided $4 billion in ESG-CV funds to be used to prevent, prepare for, and respond to coronavirus, among individuals and families who are homeless or receiving homeless assistance. Our objective is to determine what challenges grantees of ESG-CV funds have faced in implementing the program and utilizing grant funds.
Disaster Preparedness of Federal Agencies
HUD OIG will summarize the conclusions/findings and recommendations reported by seven participating OIGs and the General Accountability Office related to natural disaster preparedness. Our objective is to inform Federal agencies and the OIG community of the reported conclusions/findings and recommendations regarding preparing for and responding to natural disasters.
Temporary Endorsement Policy Related to COVID-19 Forbearance Activity
HUD OIG is auditing HUD’s administration of its temporary endorsement policy related to COVID-19 forbearance activity. The temporary policy allowed mortgagees to endorse mortgages that were placed into forbearance prior to endorsement as long as they met certain requirements and executed a 2-year partial indemnification agreement. Our objectives are to determine whether the policy was properly followed by mortgagees, review HUD’s plan to monitor and enforce the indemnification agreements, and review HUD’s decision to end the policy.
HUD Communication to Homeowners Regarding COVID-19 Policies
HUD OIG is auditing HUD’s proactive communication to homeowners with FHA-insured single family mortgages. The CARES Act and various HUD guidance contain key information that is relevant for homeowners such as details about mortgage loan forbearance protections. Our objective is to assess HUD’s communication to homeowners through its website, joint website, and other proactive methods about protections, repayment options, loss mitigation options, and responsibilities related to COVID-19.
Impact of COVID-19 on Nursing Homes
HUD OIG is conducting a review of HUD's Office of Residential Care Facilities. Media reports have shown that the COVID-19 virus impacted nursing homes nationwide. Our audit objective is to determine the biggest challenges that nursing home owners face related to COVID-19 and whether they are prepared to meet their future financial obligations.
Public and Indian Housing Supplemental Operating Funds
HUD OIG is conducting a limited review of HUD's administration of supplemental operating funds under the CARES Act. The CARES Act authorized an additional $685 million in public housing operating funds to prevent, prepare for, and respond to COVID-19. The review objective is to assess Public Housing Agencies' (PHA) experiences and challenges and HUD's efforts in providing guidance related to the administration of supplemental operating funds under the CARES Act.
Status of Office of Native American Programs (ONAP) CARES Act Funds
HUD OIG is conducting a limited review of the emergency Indian Housing Block Grant (IHBG) and Indian Community Development Block Grant (ICDBG) funds authorized under the CARES Act. HUD awarded $200 million in IHBG CARES Act funding and $100 million in ICDBG CARES Act funding. The audit objective is to determine the status of emergency IHBG and ICDBG CARES Act funds and any areas of potential concern.
HUD's Oversight of REAC Inspections
HUD OIG is auditing HUD's Real Estate Assessment Center (REAC) inspection process. REAC's inspection process helps to ensure decent, safe and sanitary affordable public housing . The audit objectives are to (1) determine whether HUD's Real Estate Assessment Center ensured that, before it postponed physical inspections due to COVID-19, public housing properties were inspected within required timeframes, (2) evaluate the Center’s plan to restart inspections of public housing properties that were postponed due to COVID-19, and (3) determine whether the Center was evaluating the physical conditions of public housing properties approved under the NSPIRE demonstration program to ensure that residents were living in decent, safe, and sanitary housing.
Administration of Procurement Activities under the CARES Act
HUD OIG is auditing HUD's COVID-19 procurement activities. Due to the pandemic, regular contracting requirements were revised to help meet the needs of contractors who did not have access to the Federal work sites or could not complete contracts in a timely manner due to quarantining, social distancing, or other COVID-19 related interruptions. The audit objective is to determine what HUD has done to accommodate contractors' pandemic related issues while ensuring that HUD meets is business objectives.
The purpose of this memorandum is to notify you that we are researching prior audits of HUD’s Single Family Default Monitoring System to provide HUD information regarding lessons learned and risks identified in these prior audits that HUD should act on now to ensure program integrity and mitigate the risk of financial loss for COVID-19 related forbearance assistance and foreclosure moratorium related to single family loans.