U.S. Department of Housing and Urban Development - Supportive Housing for the Elderly (Section 202) Program and Home Investment Partnership Program Finding No. 2022-001; Federal Assistance Listing Number 14.157; Finding No. 2022-002; and Federal Assistance Listing Number 14.239 Criteria Tenant lease files are required to be maintained and tenant eligibility determined in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs Condition In connection with our lease file review, we noted that: 1. One out of three tenants? recertification was not performed timely; and 2. One out of three tenants? income verification was not performed timely with the use of the HUD Enterprise Income Verification ("EIV") timeliness. Cause Management's policies with respect to recertifications and eligibility and the maintenance of tenant lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs were not consistently followed. Effect or Potential Effect The procedures for determining tenant recertification eligibility and maintaining tenant lease files were not consistently applied in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. This could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Questioned Costs N/A Context One out of three tenants' recertification was not performed timely, and one out of three tenants tested did not have the EIV run timely Identification as a Repeat Finding Yes Recommendation Management should establish procedures and monitor compliance with those procedures to insure that recertifications are performed timely and signed, tenant eligibility is correctly determined and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Auditor Noncompliance Code: E-Eligibility for Uniform Guidance; Z-Other Finding Resolution Status: Resolved Views of Responsible Officials and Planned Corrective Actions: Due to either tenant non-compliance or challenges with scheduling meetings with tenants or obtaining verifications, some recertifications were completed late. REACH has policies in place to complete recertifications timely and will be providing ongoing training and guidance to staff to make sure the policies are being followed.
Finding No. 2022-003; Federal Assistance Listing Number 14.157 Criteria In accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs, HUD projects are required to establish and maintain at all times a fully funded separate bank account for tenant security deposits collected. Condition As of December 31, 2022 management has not fully funded the tenant security deposits cash account. The tenant security deposits cash account was underfunded by $1,142 Cause The tenant security deposits liability exceeds the tenant security deposits cash account by $1,142 as of December 31, 2022.. Effect or Potential Effect Management commingled tenant security deposits with its operating cash and did not have sufficient cash balance in the tenant security deposits cash account to cover the tenant security deposits liability as of December 31, 2022. Questioned Costs N/A Context Security deposit account is underfunded by $1,142. Identification as a Repeat Finding No Recommendation Management should transfer $1,142 from the operating account in order to fully fund the tenant security deposits account. Auditor Noncompliance Code: N-Special tests and provisions for Uniform Guidance; M-Security deposits Finding Resolution Status: Unresolved Views of Responsible Officials and Planned Corrective Actions: The difference of $1,142 primarily relates to what is showing as delinquent security deposits. Upon further review, Fiscal discovered that $402 of one tenant?s and $269 of another tenant?s security deposits were duplicated. The community manager will do a ledger adjustment for these instances. A third tenant?s deposit was never collected in 2019 and $323 of this deposit is to be reversed. Only $353 is truly outstanding. Fiscal asked the Maples I community manager to attempt to collect $303 SD ($353 less $50 paid) in 2023. Going forward, security deposits receivable will be reviewed monthly. Fiscal will work with property management department to notify them if a security deposit is outstanding after a tenant has moved in.
U.S. Department of Housing and Urban Development - Supportive Housing for the Elderly (Section 202) Program and Home Investment Partnership Program Finding No. 2022-001; Federal Assistance Listing Number 14.157; Finding No. 2022-002; and Federal Assistance Listing Number 14.239 Criteria Tenant lease files are required to be maintained and tenant eligibility determined in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs Condition In connection with our lease file review, we noted that: 1. One out of three tenants? recertification was not performed timely; and 2. One out of three tenants? income verification was not performed timely with the use of the HUD Enterprise Income Verification ("EIV") timeliness. Cause Management's policies with respect to recertifications and eligibility and the maintenance of tenant lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs were not consistently followed. Effect or Potential Effect The procedures for determining tenant recertification eligibility and maintaining tenant lease files were not consistently applied in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. This could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Questioned Costs N/A Context One out of three tenants' recertification was not performed timely, and one out of three tenants tested did not have the EIV run timely Identification as a Repeat Finding Yes Recommendation Management should establish procedures and monitor compliance with those procedures to insure that recertifications are performed timely and signed, tenant eligibility is correctly determined and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Auditor Noncompliance Code: E-Eligibility for Uniform Guidance; Z-Other Finding Resolution Status: Resolved Views of Responsible Officials and Planned Corrective Actions: Due to either tenant non-compliance or challenges with scheduling meetings with tenants or obtaining verifications, some recertifications were completed late. REACH has policies in place to complete recertifications timely and will be providing ongoing training and guidance to staff to make sure the policies are being followed.
U.S. Department of Housing and Urban Development - Supportive Housing for the Elderly (Section 202) Program and Home Investment Partnership Program Finding No. 2022-001; Federal Assistance Listing Number 14.157; Finding No. 2022-002; and Federal Assistance Listing Number 14.239 Criteria Tenant lease files are required to be maintained and tenant eligibility determined in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs Condition In connection with our lease file review, we noted that: 1. One out of three tenants? recertification was not performed timely; and 2. One out of three tenants? income verification was not performed timely with the use of the HUD Enterprise Income Verification ("EIV") timeliness. Cause Management's policies with respect to recertifications and eligibility and the maintenance of tenant lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs were not consistently followed. Effect or Potential Effect The procedures for determining tenant recertification eligibility and maintaining tenant lease files were not consistently applied in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. This could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Questioned Costs N/A Context One out of three tenants' recertification was not performed timely, and one out of three tenants tested did not have the EIV run timely Identification as a Repeat Finding Yes Recommendation Management should establish procedures and monitor compliance with those procedures to insure that recertifications are performed timely and signed, tenant eligibility is correctly determined and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Auditor Noncompliance Code: E-Eligibility for Uniform Guidance; Z-Other Finding Resolution Status: Resolved Views of Responsible Officials and Planned Corrective Actions: Due to either tenant non-compliance or challenges with scheduling meetings with tenants or obtaining verifications, some recertifications were completed late. REACH has policies in place to complete recertifications timely and will be providing ongoing training and guidance to staff to make sure the policies are being followed.
Finding No. 2022-003; Federal Assistance Listing Number 14.157 Criteria In accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs, HUD projects are required to establish and maintain at all times a fully funded separate bank account for tenant security deposits collected. Condition As of December 31, 2022 management has not fully funded the tenant security deposits cash account. The tenant security deposits cash account was underfunded by $1,142 Cause The tenant security deposits liability exceeds the tenant security deposits cash account by $1,142 as of December 31, 2022.. Effect or Potential Effect Management commingled tenant security deposits with its operating cash and did not have sufficient cash balance in the tenant security deposits cash account to cover the tenant security deposits liability as of December 31, 2022. Questioned Costs N/A Context Security deposit account is underfunded by $1,142. Identification as a Repeat Finding No Recommendation Management should transfer $1,142 from the operating account in order to fully fund the tenant security deposits account. Auditor Noncompliance Code: N-Special tests and provisions for Uniform Guidance; M-Security deposits Finding Resolution Status: Unresolved Views of Responsible Officials and Planned Corrective Actions: The difference of $1,142 primarily relates to what is showing as delinquent security deposits. Upon further review, Fiscal discovered that $402 of one tenant?s and $269 of another tenant?s security deposits were duplicated. The community manager will do a ledger adjustment for these instances. A third tenant?s deposit was never collected in 2019 and $323 of this deposit is to be reversed. Only $353 is truly outstanding. Fiscal asked the Maples I community manager to attempt to collect $303 SD ($353 less $50 paid) in 2023. Going forward, security deposits receivable will be reviewed monthly. Fiscal will work with property management department to notify them if a security deposit is outstanding after a tenant has moved in.
U.S. Department of Housing and Urban Development - Supportive Housing for the Elderly (Section 202) Program and Home Investment Partnership Program Finding No. 2022-001; Federal Assistance Listing Number 14.157; Finding No. 2022-002; and Federal Assistance Listing Number 14.239 Criteria Tenant lease files are required to be maintained and tenant eligibility determined in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs Condition In connection with our lease file review, we noted that: 1. One out of three tenants? recertification was not performed timely; and 2. One out of three tenants? income verification was not performed timely with the use of the HUD Enterprise Income Verification ("EIV") timeliness. Cause Management's policies with respect to recertifications and eligibility and the maintenance of tenant lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs were not consistently followed. Effect or Potential Effect The procedures for determining tenant recertification eligibility and maintaining tenant lease files were not consistently applied in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. This could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Questioned Costs N/A Context One out of three tenants' recertification was not performed timely, and one out of three tenants tested did not have the EIV run timely Identification as a Repeat Finding Yes Recommendation Management should establish procedures and monitor compliance with those procedures to insure that recertifications are performed timely and signed, tenant eligibility is correctly determined and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Auditor Noncompliance Code: E-Eligibility for Uniform Guidance; Z-Other Finding Resolution Status: Resolved Views of Responsible Officials and Planned Corrective Actions: Due to either tenant non-compliance or challenges with scheduling meetings with tenants or obtaining verifications, some recertifications were completed late. REACH has policies in place to complete recertifications timely and will be providing ongoing training and guidance to staff to make sure the policies are being followed.