U.S. Department of Housing and Urban Development Office of Inspector General

Today, we issued our annual independent evaluation of the effectiveness of HUD’s information security (InfoSec) program and practices under the Federal Information Security Modernization Act of 2014 (FISMA). FISMA requires all Inspectors General (IG) to annually assess the effectiveness of their Federal agency’s InfoSec programs. The Office of Management and Budget (OMB) publishes metrics annually for the IG community to use during these assessments that are combined as a part of a governmentwide maturity model. HUD’s FY 2024 overall FISMA maturity was assessed at level 3, the “consistently implemented” maturity level. This maturity level was an increase from where HUD was assessed in FY 2023, which was level 2, “defined.” OMB guidance states that an agency InfoSec program is effective at a maturity level 4, which is the “managed and measurable” maturity level. HUD made significant improvements in metrics, maturing in 22 of the 37 that were evaluated and, for the first time, achieved maturity level 4, managed and measurable, in 14 metrics. Read more: https://lnkd.in/eZBESgM6

Former City of Amarillo Employee Sentenced for Embezzlement of HUD Emergency Shelter Grant Funds A HUD OIG and FBI investigation resulted in the prosecution of a former City of Amarillo homeless management information specialist and grant manager for her role in conspiracy to embezzle rental subsidies in the amount of $465,511 from HUD’s Emergency Shelter Grant (ESG) program.   From September 2020 through April 2023, the defendant used a fictitious landlord and clients that received ESG rental subsidies to embezzle HUD ESG funds to her bank account. To carry out the scheme, the defendant created fictitious home addresses, fake lease agreements, and inspection reports to cover the fraudulent scam. On October 22, the defendant was prosecuted by the U.S. Attorney’s Office for the Northern District of Texas and was sentenced to 24 months in prison, one year of supervised release, and ordered to pay restitution in the amount of $465,511 to the City of Amarillo.  See related guilty plea press release: https://lnkd.in/eynXmnub

Through our oversight work at HUD OIG, we endeavor to help prevent lead exposure to those living in HUD-assisted housing. Our work extends beyond National Lead Poisoning Prevention Week. #NLPPW2024 See below for a sample of what we're working on: https://lnkd.in/eTqBH2kq https://lnkd.in/eHACGV6a https://lnkd.in/ebEWMh77

We recently found that three of the largest PHAs didn't always meet the requirement to do lead-based paint visual assessments within 12 months. Today, we highlighted how HUD can assist PHAs to support timely and efficient visual assessments of lead-based paint. #NLPPW2024 Read more: https://lnkd.in/eHSUFPTg

An essential part of our mission is to investigate allegations wherein those in HUD-assisted housing are negligently exposed to lead and other environmental hazards. Take a look at several cases involving HUD OIG’s Office of Investigations. #NLPPW2024 Read more: https://lnkd.in/gnfRTuQ7 https://lnkd.in/dGFhGzz2 https://lnkd.in/gsfzNxyn

As a part of our efforts related to HUD’s lead poisoning prevention efforts, HUD OIG has examined and reported on the Department’s oversight programs, as well as several large housing authorities’ management of health hazards in the public housing and voucher programs. #NLPPW2024  Read more:  https://lnkd.in/egU9x4Gb https://lnkd.in/eSj5itCH https://lnkd.in/eCGYqXSc https://lnkd.in/ed_HuruU https://lnkd.in/ebvFAx3E

Addressing lead contamination is a key initiative established for HUD OIG by Inspector General Rae Oliver Davis. During this year’s Lead Poisoning Prevention Week #NLPPW2024 we will highlight our related oversight and enforcement promoting safe, affordable HUD-assisted housing. If you or someone you know has information about environmental hazards in HUD-assisted housing report it to the HUD Office of Inspector General Hotline at 1-800-347-3735 or visit the website at www.hudoig.gov/hotline 

Today we issued our report highlighting HUD’s Top Management Challenges for FY25. In addition to describing the most serious management and performance challenges facing the Department, the report discusses progress HUD made in the past fiscal year including addressing priority open recommendations which, if implemented, will have the largest impact on helping the Department achieve its mission and address its top management challenges.     The Top Management Challenges facing HUD for FY25 identified by HUD OIG are:     1. Promoting Health and Safety in HUD-Assisted Housing  2. Increasing Access to Affordable Housing   3. Mitigating Counterparty Risks   4. Grants Management  5. Enhancing Oversight of Disaster Recovery  6. Managing Fraud Risk and Improper Payments   7. Improving IT Modernization and Cybersecurity   8. Increasing Effectiveness in Procurement Read more: https://lnkd.in/eMaUt4XX

HUD OIG joined the U.S. Attorney for the District of Montana to announce that a former executive director of the Whitefish Housing Authority admitted to embezzling at least $100K from the organization from approximately May 2023 to January 2024. The defendant stole housing authority money by diverting and inflating payroll, fraudulently paying personal expenses with the Whitefish Housing Authority credit card and creating and paying fraudulent invoices to businesses over which he had control. He faces a maximum of 10 years in prison, a $250K fine and 3 years of supervised release. 👉  Read more: https://lnkd.in/epEvTqRN

Bob Dean Jr. and Affiliated Corporate Entities Agree to $8.2M Consent Judgment to Resolve Allegations of Financial Misconduct Stemming from Evacuation of Nursing Homes During Hurricane Ida A former business owner and his companies have agreed to an $8.2 million consent judgment to resolve allegations that they violated the National Housing Act of 1934 (NHA), by misappropriating and misusing the assets and income of four nursing homes in Louisiana before and after Hurricane Ida’s landfall in August 2021. It is alleged that in the five years leading up to Hurricane Ida, the defendant funneled money that should have been used to prepare an evacuation site for nursing home residents to his personal bank accounts, leaving his nursing homes — and, more importantly, the nursing homes’ residents — unprepared for a hurricane. As a result, when Hurricane Ida made landfall in August 2021, the residents of his nursing homes had to ride out the storm in an overcrowded and ill-prepared industrial warehouse that he owned through a corporate entity. 👉 Read more: https://lnkd.in/e5BgNx8W