Nova Management, Houston, Texas

Published by the Department of Housing and Urban Development, Office of Inspector General on 1996-09-09.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

                                              U. S. Department of Housing and Urban Development
                                              Southwest District
                                              1600 Throckmorton
                                              P.O. Box 2905
                                              Fort Worth, Texas 76113-2905
                                              (817) 885-5551 Fax (817) 885-2725

September 9, 1996                             96-FW-212-1804

MEMORANDUM FOR: Albert Cason, Director, Multifamily Housing Division, 6EHM

FROM: D. Michael Beard, District Inspector General for Audit, 6AGA

SUBJECT: Nova Management
         Houston, Texas

   As part of our Operation Safe Home effort, we conducted a review of the operations of
Nova Management as it related to three HUD projects with HUD insured/held mortgages.
Based on this review, a draft finding was provided to you and to the President of Nova

    As a result of your efforts, based on the draft, a successful settlement agreement was
reached with Nova Management. As you are aware, Nova agreed to repay the three projects
as follows:
                                  Project              Amount
                                Dyersdale              $ 58,409
                                Gulf Coast               46,283
                                Columbus                 43,560
                                   Total              $148,252

    Your staff advised that Nova made the last payment under the settlement agreement on
August 10, 1996. Also, the President of Nova Management has apparently taken a more
active interest in the day-to-day operations to ensure that HUD requirements are being
followed. Therefore, the combined efforts of the HUD Multifamily staff and the OIG Audit
staff led to the successful completion of this Operation Safe Home effort.

  If you have any questions, please contact Darrel M. Vaught, Assistant District Inspector
General for Audit.