FAC Explorer

Audit 374015

FY End
2024-03-31
Total Expended
$3.55M
Findings
2
Programs
2
Organization: Blossom Village Housing Development Fund Corporation (NY)
Year: 2024 Accepted: 2025-12-11
Auditor: BONADIO & CO LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1164470 2024-002 Material Weakness Yes P
1164471 2024-002 Material Weakness Yes P

Programs

ALN Program Spent Major Findings
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $1.93M Yes 0
14.181 SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES $67,347 Yes 1

Contacts

Name Title Type
NWF8UQF88D23 Seanelle Hawkins Auditee
5853256530 Michael Vollmer Auditor
No contacts on file

Notes to SEFA

The Corporation has received Section 811 capital advances from the U.S. Department of Housing and Urban Development’s (HUD) Supportive Housing for Persons with Disabilities program (Assistance Listing No. 14.181). Under the terms of the capital advance agreements, the Corporation must continue to operate the project for the specified purpose for a period of 40 years. Failure to operate the project in accordance with the capital advance agreement would result in the Corporation being required to repay HUD the entire capital advance, plus interest, since the date of the first advance. The Corporation has a note payable to the Housing Trust Fund Corporation in the amount of $1,932,574. The note does not bear interest and does not require any principal payments until March 2067, when the entire amount is due. The Corporation must keep the related housing available for a period of 50 years for low-income elderly individuals. Failure to keep the related housing available for these individuals would result in the Corporation being required to repay the entire loan balance at the time of default. The note is secured by the related property and building.

Finding Details

Finding 2024-002
Program U.S. Department of Housing and Urban Development (HUD) – Supportive Housing for Persons with Disabilities (Section 811) and Project Rental Assistance, Assistance Listing No. 14.181. This finding was partially reported as finding 2023-001 in the prior year. Condition/Context A haphazard sample of three tenant files out of twenty-four (not a statistically valid sample) were selected for testing and the required documentation to determine eligibility, as required by the HUD regulations, could not be located as follows:  For one of the files, Form HUD-50059, Owner’s Certification of Compliance with HUD’s Tenant Eligibility and Rent Procedures was not provided.  For one of the files, there was no verification of income by a third party provided.  For all of the files, there was no signed move-in/move-out inspection form provided. Additionally, our testing indicated that the required deposits to the replacement reserve account had not been made for the last quarter of the Corporation’s fiscal year for any tenants. Criteria Tenant files and all required documents should be completed and maintained as required by HUD requirements and replacement reserve deposits need to be made timely. Cause There were no procedures in place to ensure that all tenant files were properly completed and maintained or ensure that replacement reserve deposits were made. Effect Inadequate tenant file documentation and lack of timely replacement reserve deposits has resulted in the Corporation’s inability to comply with the HUD Regulatory Agreement. Recommendation We recommend the Corporation establish procedures and internal controls to ensure that all required documentation is maintained, and all required reserve deposits are made timely, in accordance with HUD requirements. Finding 2024-002 Program U.S. Department of Housing and Urban Development (HUD) – Supportive Housing for Persons with Disabilities (Section 811) and Project Rental Assistance, Assistance Listing No. 14.181. This finding was partially reported as finding 2023-001 in the prior year. Condition/Context A haphazard sample of three tenant files out of twenty-four (not a statistically valid sample) were selected for testing and the required documentation to determine eligibility, as required by the HUD regulations, could not be located as follows:  For one of the files, Form HUD-50059, Owner’s Certification of Compliance with HUD’s Tenant Eligibility and Rent Procedures was not provided.  For one of the files, there was no verification of income by a third party provided.  For all of the files, there was no signed move-in/move-out inspection form provided. Additionally, our testing indicated that the required deposits to the replacement reserve account had not been made for the last quarter of the Corporation’s fiscal year for any tenants. Criteria Tenant files and all required documents should be completed and maintained as required by HUD requirements and replacement reserve deposits need to be made timely. Cause There were no procedures in place to ensure that all tenant files were properly completed and maintained or ensure that replacement reserve deposits were made. Effect Inadequate tenant file documentation and lack of timely replacement reserve deposits has resulted in the Corporation’s inability to comply with the HUD Regulatory Agreement.