FAC Explorer

Audit 390549

FY End
2025-06-30
Total Expended
$12.60M
Findings
2
Programs
2
Organization: La Casa De Felicidad Housing Development Fund Corporation (NY)
Year: 2025 Accepted: 2026-03-06
Auditor: COHNREZNICK LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1176679 2025-001 Material Weakness Yes E
1176680 2025-001 Material Weakness Yes E

Programs

ALN Program Spent Major Findings
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY $11.44M Yes 1
14.157 Section 202 Project Based Assistance Contract $1.16M Yes 1

Contacts

Name Title Type
RCGEYNAPUDT8 Lukeman Ogunyinka Auditee
2122439090 Wanda Ellison-Osborne Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of La Casa de Felicidad Housing Development Fund Corporation (the "Corporation") under programs of the federal government for the year ended June 30, 2025. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations ("CFR") Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ("Uniform Guidance"). Because the Schedule presents only a selected portion of the operations of the Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Corporation. The amount for CFDA 14.195 represents tenant assistance revenue for the year ended June 30, 2025. The amount for CFDA 14.157 represents the outstanding mortgage note balance as of June 30, 2025.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
The Corporation has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
La Casa de Felicidad Housing Development Fund Corporation has received a U.S. Department of Housing and Urban Development direct loan under Section 202 of the National Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. La Casa de Felicidad Housing Development Fund Corporation received no additional loans during the year. The balance of the loan outstanding at June 30, 2025 consists of: See the Notes to the SEFA for chart/table

Finding Details

Finding 2025-001
Criteria In accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs, for all new admissions, including Initial Certifications (IC), the owner must review the Income Report within 90 days after transmission of the move-in certification to TRACS to confirm/validate the income reported by the household. Condition In connection with our review of 1 lease file for move-ins we noted the following deficiency: 1 file did not have timely income verification through Enterprise Income Verification System (EIV). Cause Management's policies with respect to the determination of 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 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 Identification as a Repeat Finding N/A Recommendation Management should establish procedures and monitor compliance with those procedures to ensure that 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. HUD Auditor Noncompliance Code R. Section 8 program administration Uniform Guidance Auditor Noncompliance Code E- Eligibility Finding Resolution Status: In process Views of Responsible Officials Management has addressed the issue by recertifying the tenant and does not expect late recertifications or income verification to occur again.