Audit 411210

HUD Handbook 4350.3 requires owners to administer occupancy in accordance with HUD requirements and to accurately certify household information used to determine assistance. When a resident is absent from the unit for an extended period, the owner must determine whether the absence is temporary or whether the resident has permanently vacated the unit. Assistance payments must be supported by documentation demonstrating that continued occupancy and subsidy are appropriate. HUD generally limits temporary absenses for medical reasons 180 days. Resident moved to nursing facility on April 11, 2025. Management continues to claim subsidy for the unoccupied unit. No documentation was on file indicating that the resident was no longer residing in their unit. No documentation was on file supporting management's assessment of the absense as temporary. No physician's assessment of likelihood and anticipated timing of return to unit.

Owner/Agent must reexamine family income and composition at least once every 12 months and adjust the total rent payment and housing assistance payment, as necessary (24 CFR section 891.410). The owner is responsible for annually reexamining incomes of households occupying assisted units and making appropriate adjustments to the tenant payment and the project rental assistance payment (24 CFR section 891.410). Management reported incorrect income on the 50059 for 2/10 residents in the sample tested.

We identified deficiencies within tenant files indicating that management’s existing processes and controls were not sufficient to ensure consistent compliance with applicable HUD requirements. Specifically, tenant files did not consistently contain required supporting documentation, evidence of required reviews, or documentation necessary to demonstrate compliance with program requirements. These conditions resulted in instances where management was unable to demonstrate that tenant eligibility, rent calculations, and/or other compliance determinations were performed in accordance with applicable HUD requirements.