Audit 394206

Finding 2025-001: Mortgage Insurance - Rental Housing (Section 207), Federal Assistance Listing Number 14.134 Criteria: The HUD Handbook requires owners to perform and document inspections of each unit on at least an annual basis. Condition: Unit inspections were not performed during the year. Questioned costs: None. The finding relates solely to noncompliance with required inspections; no costs were affected Context: We reviewed 5 tenant files for documentation of unit inspections. Cause: North Street Apartments did not ensure unit inspections were performed during the year. Effect: The tenant’s unit may not be in a decent, safe, and sanitary condition. Recommendation: We recommend that North Street Apartments resume unit inspections and ensure those inspections are properly documented in the tenant files. Views of management and planned corrective action: North Street Apartments has resumed unit inspections and will ensure those inspections are properly documented in the tenant files.