Assistance Listing (Federal award identification number and year): Section 8 Housing
Assistance Payments Contract, CFDA# 14.195 (Project identification number HAP #CA16L000119)
Auditor non-compliance code: Z - Other
Finding resolution status: Completed
Universe population status: N/A
Sample size information: N/A
Statistically valid sample: N/A
Name of Federal agency: U.S Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: N/A
Statement of condition #2024-001: Pursuant to Section 10(e) of the Regulatory Agreement, the
Corporation is required to furnish HUD with a complete annual financial report based upon an
examination of the books and records of the Company prepared in accordance with GAAP, audited in
accordance with Generally Accepted Auditing Standards and Government Auditing Standards and any
additional requirements of HUD unless the report is waived in writing by HUD within ninety days, or
such period established in writing by HUD.
Criteria: The Corporation did not furnish HUD with a complete annual financial report within ninety
days following the end of the fiscal year ending June 30, 2024.
Effect: The Corporation was not in compliance with the Regulatory Agreement.
Cause: The accounting team did not provide financial information in a timely manner.
Recommendation: The annual financial statements should be issued in a timely manner pursuant to
the time frame set forth by HUD.
Management's response: Management concurs with the finding and recommendation. The audited
financial statements have been submitted to HUD. No further action is required.
Assistance Listing (Federal award identification number and year): Section 8 Housing
Assistance Payments Contract, CFDA# 14.195 (Project identification number HAP #CA16L000119)
Auditor non-compliance code: Z - Other
Finding resolution status: Completed
Universe population status: N/A
Sample size information: N/A
Statistically valid sample: N/A
Name of Federal agency: U.S Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: N/A
Statement of condition #2024-002: The Form SF-SAC Single Audit Data Collection Form for the
year ended June 30, 2024 was not submitted within the required timeframe to the federal audit
clearinghouse.
Criteria: Pursuant to the Uniform Guidance, the Corporation is required to submit Form SF-SAC Single
Audit Data Collection Form within the earlier of 30 calendar days after receipt of the auditor's report
or nine months after the end of the audit period.
Effect: The Corporation was not in compliance with the Uniform Guidance Section 200.512.
Cause: The Corporation did not submit Form SF-SAC Single Audit Data Collection Form within nine
months after the end of the audit period.
Recommendation: Management should submit the Form SF-SAC Single Audit Data Collection Form
within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end
of the audit period in the future.
Management's response: Agree. Form SF-SAC Single Audit Data Collection Form for the year ended
June 30, 2024 was submitted to the federal audit clearinghouse. No further action is required.
Assistance Listing (Federal award identification number and year): Section 8 Housing
Assistance Payments Contract, CFDA# 14.195 (Project identification number HAP #CA16L000119)
Auditor non-compliance code: I – Failure to maintain property / open physical inspection
Finding resolution status: Completed
Universe population status: N/A
Sample size information: N/A
Statistically valid sample: N/A
Name of Federal agency: U.S Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: N/A
Statement of condition #2024-003: The Property received an overall rating of satisfactory on the
Management Occupancy Review report performed on November 7, 2023. Management did not submit
responses to the findings until more than 30 days later, on May 7, 2024.
Criteria: Pursuant to the HAP Contract and Regulatory Agreement, the Property is to be maintained
in good repair and condition and considered decent, safe, and sanitary. Management is to conduct
routine unit and general property inspections and deficiencies should be corrected. Pursuant to Chapter
6 of the HUD Asset Management Handbook (4350.1 REV-1), deficiencies identified in a Management
and Occupancy Review must be corrected within 30 calendar days or as otherwise stipulated in the
corrective action plan provided.
Effect: The Corporation is not in compliance with the HAP Contract, Regulatory Agreement, or HUD
Asset Management Handbook.
Cause: Management has experienced high turnover in their administrative rolls, which led to the delay
in submission of responses.
Recommendation: Management should respond to all Management Occupancy Review findings
within 30 days going forward.
Management's response: Agree. Management has responded to all deficiencies and has received a
close out letter dated September 9, 2024.
Assistance Listing (Federal award identification number and year): Section 8 Housing
Assistance Payments Contract, CFDA# 14.195 (Project identification number HAP #CA16L000119)
Auditor non-compliance code: R – Section 8 Program Administration
Finding resolution status: Completed
Universe population status: 116 tenant files
Sample size information: 12 tenant files
Statistically valid sample: N/A
Name of Federal agency: U.S Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: N/A
Statement of condition #2024-004: During the year ended June 30, 2024, 1 of the 12 resident
files selected for testing under the HUD Consolidated Audit Guide was missing the most recent
executed HUD-50059 and most recent lease agreement and/or amendment.
Criteria: In accordance with the HAP Contract and HUD Handbook 4350.3, the Corporation must
certify and recertify residents and update other applicable forms in accordance with HUD regulations
and contractual requirements.
Effect: The Corporation 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 these resident files.
Cause: The Corporation was unable to locate the entirety of 1 of the 12 resident files selected for
testing at the Property.
Recommendation: The Corporation should ensure that all resident files are maintained at the site
for each resident of the Property, and the Corporation should ensure that the resident files include all
properly executed and documented resident eligibility forms.
Management's response: Management concurs with the finding and recommendation. The resident
file noted in the statement of condition was for a resident who moved out of the Property during the
year ended June 30, 2024. No further action is required related to this resident's file. However, the
Corporation intends to review and update, as necessary, the other resident files to ensure the Property
is in compliance with HUD requirements.
Assistance Listing (Federal award identification number and year): Section 8 Housing
Assistance Payments Contract, CFDA# 14.195 (Project identification number HAP #CA16L000119)
Auditor non-compliance code: Z - Other
Finding resolution status: Completed
Universe population status: N/A
Sample size information: N/A
Statistically valid sample: N/A
Name of Federal agency: U.S Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: N/A
Statement of condition #2024-001: Pursuant to Section 10(e) of the Regulatory Agreement, the
Corporation is required to furnish HUD with a complete annual financial report based upon an
examination of the books and records of the Company prepared in accordance with GAAP, audited in
accordance with Generally Accepted Auditing Standards and Government Auditing Standards and any
additional requirements of HUD unless the report is waived in writing by HUD within ninety days, or
such period established in writing by HUD.
Criteria: The Corporation did not furnish HUD with a complete annual financial report within ninety
days following the end of the fiscal year ending June 30, 2024.
Effect: The Corporation was not in compliance with the Regulatory Agreement.
Cause: The accounting team did not provide financial information in a timely manner.
Recommendation: The annual financial statements should be issued in a timely manner pursuant to
the time frame set forth by HUD.
Management's response: Management concurs with the finding and recommendation. The audited
financial statements have been submitted to HUD. No further action is required.
Assistance Listing (Federal award identification number and year): Section 8 Housing
Assistance Payments Contract, CFDA# 14.195 (Project identification number HAP #CA16L000119)
Auditor non-compliance code: Z - Other
Finding resolution status: Completed
Universe population status: N/A
Sample size information: N/A
Statistically valid sample: N/A
Name of Federal agency: U.S Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: N/A
Statement of condition #2024-002: The Form SF-SAC Single Audit Data Collection Form for the
year ended June 30, 2024 was not submitted within the required timeframe to the federal audit
clearinghouse.
Criteria: Pursuant to the Uniform Guidance, the Corporation is required to submit Form SF-SAC Single
Audit Data Collection Form within the earlier of 30 calendar days after receipt of the auditor's report
or nine months after the end of the audit period.
Effect: The Corporation was not in compliance with the Uniform Guidance Section 200.512.
Cause: The Corporation did not submit Form SF-SAC Single Audit Data Collection Form within nine
months after the end of the audit period.
Recommendation: Management should submit the Form SF-SAC Single Audit Data Collection Form
within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end
of the audit period in the future.
Management's response: Agree. Form SF-SAC Single Audit Data Collection Form for the year ended
June 30, 2024 was submitted to the federal audit clearinghouse. No further action is required.
Assistance Listing (Federal award identification number and year): Section 8 Housing
Assistance Payments Contract, CFDA# 14.195 (Project identification number HAP #CA16L000119)
Auditor non-compliance code: I – Failure to maintain property / open physical inspection
Finding resolution status: Completed
Universe population status: N/A
Sample size information: N/A
Statistically valid sample: N/A
Name of Federal agency: U.S Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: N/A
Statement of condition #2024-003: The Property received an overall rating of satisfactory on the
Management Occupancy Review report performed on November 7, 2023. Management did not submit
responses to the findings until more than 30 days later, on May 7, 2024.
Criteria: Pursuant to the HAP Contract and Regulatory Agreement, the Property is to be maintained
in good repair and condition and considered decent, safe, and sanitary. Management is to conduct
routine unit and general property inspections and deficiencies should be corrected. Pursuant to Chapter
6 of the HUD Asset Management Handbook (4350.1 REV-1), deficiencies identified in a Management
and Occupancy Review must be corrected within 30 calendar days or as otherwise stipulated in the
corrective action plan provided.
Effect: The Corporation is not in compliance with the HAP Contract, Regulatory Agreement, or HUD
Asset Management Handbook.
Cause: Management has experienced high turnover in their administrative rolls, which led to the delay
in submission of responses.
Recommendation: Management should respond to all Management Occupancy Review findings
within 30 days going forward.
Management's response: Agree. Management has responded to all deficiencies and has received a
close out letter dated September 9, 2024.
Assistance Listing (Federal award identification number and year): Section 8 Housing
Assistance Payments Contract, CFDA# 14.195 (Project identification number HAP #CA16L000119)
Auditor non-compliance code: R – Section 8 Program Administration
Finding resolution status: Completed
Universe population status: 116 tenant files
Sample size information: 12 tenant files
Statistically valid sample: N/A
Name of Federal agency: U.S Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: N/A
Statement of condition #2024-004: During the year ended June 30, 2024, 1 of the 12 resident
files selected for testing under the HUD Consolidated Audit Guide was missing the most recent
executed HUD-50059 and most recent lease agreement and/or amendment.
Criteria: In accordance with the HAP Contract and HUD Handbook 4350.3, the Corporation must
certify and recertify residents and update other applicable forms in accordance with HUD regulations
and contractual requirements.
Effect: The Corporation 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 these resident files.
Cause: The Corporation was unable to locate the entirety of 1 of the 12 resident files selected for
testing at the Property.
Recommendation: The Corporation should ensure that all resident files are maintained at the site
for each resident of the Property, and the Corporation should ensure that the resident files include all
properly executed and documented resident eligibility forms.
Management's response: Management concurs with the finding and recommendation. The resident
file noted in the statement of condition was for a resident who moved out of the Property during the
year ended June 30, 2024. No further action is required related to this resident's file. However, the
Corporation intends to review and update, as necessary, the other resident files to ensure the Property
is in compliance with HUD requirements.