Audit 382036

Finding No. 2025-001: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Resolved. Information on Universe Population Size: Three tenants. Sample Size Information: One tenant. Identification of Repeat Finding and Finding Reference Number: Yes, 2024-002. Criteria: HUD regulations require the owner must refund the full security deposit plus accrued interest and/or provide the tenant with an itemized list of any unpaid rent, damages to the unit, and an estimated cost for repairs along with a statement of the tenant’s rights under state and local laws within 21 days after the moveout date. Statement of Condition: One tenant was not refunded their security deposit within 21 days after their move-out date. Cause: The Project did not adhere to state laws and HUD regulations for refunding security deposits resulting in the untimely refund of the security deposit. Effect or Potential Effect: The Project is not in compliance with HUD regulations and state laws regarding the refunding of security deposits within the required timeframe. Auditor Non-Compliance Code: M – Security Deposits. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations have been adopted. Recommendation: The Project should comply with state law and HUD regulations forrefunding security deposits timely. Response Indicator: Agree. Completion Date: 10/31/2025 Response: Staff training has been provided and included in monthly reporting procedures.

Finding No. 2025-002: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: Sixty-one tenants. Sample Size Information: Ten tenants. Identification of Repeat Finding and Finding Reference Number: Yes, 2024-003. Criteria: HUD regulations require: • Verification of initial income through the use of EIV reports within 90 days of move-in; • Move-in unit inspection to be performed at move-in. Statement of Condition: Of the tenant files selected: • Four tenant files did not contain verification of the initial income through the use of EIV reports; • The move-in unit inspection was performed two months after the move-in date for one tenant. Cause: The Project did not adhere to HUD regulations for initial eligibility and did not perform timely income verification. In addition, the Project did not follow the HUD regulations in relation to uni tinspections. Effect or Potential Effect: Unable to verify tenant eligibility and cost of assistance may be disallowed. Unable to determine and assess whether a unit was move-in ready. Auditor Non-compliance Code: R – Section 8 Program Administration. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations will be adopted. Recommendation: The Project should implement procedures to ensure that all required tenant eligibility steps are performed in accordance with HUD regulations, utilize the EIV system for income verification, inspect units timely, and maintain all supporting documentation in the tenant files. Response Indicator: Agree. Completion Date: 9/30/2026 Response: Staff training has been provided with additional HUD training inclusive of EIV reporting and tenant file maintenance and included in monthly training procedures.