Investigators found the agency could not verify thousands of housing sites and lacked key conflict-of-interest safeguards.
Officials say they’re confident the appeal will be successful.
Multiple senators, meanwhile, say that Congress should act after a trustees report found the program would deplete earlier than forecast.
Crews were able to keep the flames contained to the warehouse in Tracy, about 60 miles east of San Francisco.

Iranian Foreign Minister Abbas Araghchi said that a deal has ‘never been closer.’
The decision comes as America’s student loan portfolio is now almost $1.7 trillion, with a quarter of borrowers defaulting.
Farm groups and lawmakers have warned for months that soaring input costs are squeezing producers.
The documentary ‘Flag Day’ goes behind the scenes with the inspiring Three Oaks, Michigan, community that unites for this annual event.
Oil cartel expects lower demand this year amid Middle East tensions.
The federal government only recommends three shots for all pregnant women.
The measures target procurement networks accused of assisting Iran in acquiring weapons and military-related equipment.
Cheng Li-wun, chairwoman of Taiwan’s main opposition party, the Kuomintang, is visiting the United States.
National Democrats backed Graham Platner hours after his primary win as Republicans opened the general election with an attack ad against him.
Washington has raised pressure on communist-led Cuba, and as U.S. forces have intensified fighting with Iran.
The secretary of state has said that U.S. authorities ‘cannot and will not allow any cases of Ebola to enter the United States.’
Pulte will serve in the acting role while continuing as director of the Federal Housing Finance Agency and chairman of Fannie Mae and Freddie Mac.
Taxpayers can secure credits of up to $1,700 for contributions to scholarship-granting organizations.