Federal Reports

We audited the Federal Housing Administration (FHA), Office of Asset Sales’ U.S. Department of Housing and Urban Development (HUD)‐Held Vacant Loan Sales (HVLS) program. The audit objective was to assess the extent to which HUD tracks and measures its loan sales’ program success and its achievement of mission outcomes as they relate to the Affordable Housing Action Plan. HUD did not have adequate information to measure its loan sales’ program success as it relates to the affordable housing initiatives. HUD does not require third-party purchasers to report their identifying information, nor does it require them to report their final use of purchased properties, resulting in incomplete program outcome data. There were inconsistencies in the sales outcome reports provided by purchasers to HUD; and purchasers across HVLS sales did not provide sufficient documentation to support their reported uses of the mortgage loans and underlying properties. Postsale reporting is critical because HUD uses it to ensure that purchasers comply with the program requirements. However, because of inadequate measurement information, we were not able to determine HUD’s success rate in achieving mission objectives. With better postsale reporting, HUD can better assess whether the HVLS program outcomes are furthering HUD’s goals to promote affordable housing, expand opportunities for home ownership, and revitalize communities.

This report summarizes EPA Office of Inspector General work and accomplishments from April 1, 2024, through September 30, 2024.