Audit 33760

Assistance listing title and number (Federal award identification number and year): Section 8 Housing Assistance Program, Assistance Listing. No. 14.195, IL06M000196, 2012 Finding resolution status: In process Universe population size: 147 resident files Sample size information: The sample size is not applicable to the finding. Noncompliance information: See statement of condition #2022-001 for noncompliance information. Statistically valid sample: Not applicable Name of Federal Agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $0 Statement of condition #2022-001 (Assistance Listing No. 14.195): During the year ended December 31, 2022, Villagebrook Apartments did not recertify residents timely as required by HUD Handbook 4350.3. Criteria: In accordance with the HAP Contract and HUD Handbook 4350.3, the Agent must certify and recertify residents and update other applicable forms in accordance with HUD regulations and contractual requirements. Effect: The Property is not in compliance with the terms of the HAP Contract or HUD Handbook 4350.3. Current, future, and potentially prior funding under the HAP Contract could be impacted as a result of the recertifications not being completed timely. Cause: The Property was understaffed during the year ended December 31, 2022 and the employees responsible for completing recertifications were not doing so timely. Recommendation: The Agent should complete a review of all resident files and complete all recertifications that were not completed timely. The Agent should ensure that all residents are recertified timely in the future. Reporting views of the responsible officials: The Agent reported this concern and agrees with the finding and recommendation. The Agent has taken actions to address the staffing at the Property and to provide additional training to the employees in recertification requirements. The Agent has undertaken a 100% file review and is in the process of completing all recertifications that were not previously completed timely.

Assistance listing title and number (Federal award identification number and year): Section 8 Housing Assistance Program, Assistance Listing No. 14.195, IL060061003, 2011 Finding resolution status: In process Universe population size: 12 months of deposits to the reserve for replacements. Sample size information: 12 months of deposits to the reserve for replacements. Noncompliance information: See statement of condition #2022-002 for noncompliance information. Statistically valid sample: Not applicable Name of Federal Agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $0 Statement of condition #2022-002 (Assistance Listing No. 14.195): During the year ended December 31, 2022, monthly deposits to the reserve for replacement account have not been made for Liberty Lake. Criteria: Pursuant to section 2.6(c) of the original HAP Contract (form HUD-52522D), Liberty Lake shall make monthly deposits into a separate reserve for replacements account. Effect: Liberty Lake is not in compliance with the terms of the original HAP contract. The reserve for replacements account is underfunded at December 31, 2022. Cause: The Corporation purchased the Property on September 24, 2021 and has not received correspondence from HUD related to required deposits to the reserve for replacements. Recommendation: Management should inquire with HUD to determine the amount of monthly funding required and transfer funds from the operating account to the reserve for replacements account to fully fund the reserve. Reporting views of the responsible officials: Management concurs with the finding and recommendation and will work with HUD to determine the funding required for the reserve for replacements.

Assistance listing title and number (Federal award identification number and year): Section 8 Housing Assistance Program, Assistance Listing. No. 14.195, IL06M000196, 2012 Finding resolution status: In process Universe population size: 147 resident files Sample size information: The sample size is not applicable to the finding. Noncompliance information: See statement of condition #2022-001 for noncompliance information. Statistically valid sample: Not applicable Name of Federal Agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $0 Statement of condition #2022-001 (Assistance Listing No. 14.195): During the year ended December 31, 2022, Villagebrook Apartments did not recertify residents timely as required by HUD Handbook 4350.3. Criteria: In accordance with the HAP Contract and HUD Handbook 4350.3, the Agent must certify and recertify residents and update other applicable forms in accordance with HUD regulations and contractual requirements. Effect: The Property is not in compliance with the terms of the HAP Contract or HUD Handbook 4350.3. Current, future, and potentially prior funding under the HAP Contract could be impacted as a result of the recertifications not being completed timely. Cause: The Property was understaffed during the year ended December 31, 2022 and the employees responsible for completing recertifications were not doing so timely. Recommendation: The Agent should complete a review of all resident files and complete all recertifications that were not completed timely. The Agent should ensure that all residents are recertified timely in the future. Reporting views of the responsible officials: The Agent reported this concern and agrees with the finding and recommendation. The Agent has taken actions to address the staffing at the Property and to provide additional training to the employees in recertification requirements. The Agent has undertaken a 100% file review and is in the process of completing all recertifications that were not previously completed timely.

Assistance listing title and number (Federal award identification number and year): Section 8 Housing Assistance Program, Assistance Listing No. 14.195, IL060061003, 2011 Finding resolution status: In process Universe population size: 12 months of deposits to the reserve for replacements. Sample size information: 12 months of deposits to the reserve for replacements. Noncompliance information: See statement of condition #2022-002 for noncompliance information. Statistically valid sample: Not applicable Name of Federal Agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $0 Statement of condition #2022-002 (Assistance Listing No. 14.195): During the year ended December 31, 2022, monthly deposits to the reserve for replacement account have not been made for Liberty Lake. Criteria: Pursuant to section 2.6(c) of the original HAP Contract (form HUD-52522D), Liberty Lake shall make monthly deposits into a separate reserve for replacements account. Effect: Liberty Lake is not in compliance with the terms of the original HAP contract. The reserve for replacements account is underfunded at December 31, 2022. Cause: The Corporation purchased the Property on September 24, 2021 and has not received correspondence from HUD related to required deposits to the reserve for replacements. Recommendation: Management should inquire with HUD to determine the amount of monthly funding required and transfer funds from the operating account to the reserve for replacements account to fully fund the reserve. Reporting views of the responsible officials: Management concurs with the finding and recommendation and will work with HUD to determine the funding required for the reserve for replacements.