FAC Explorer

Audit 411778

FY End
2026-05-31
Total Expended
$15.49M
Findings
2
Programs
3
Organization: Davenport Residence, Inc. (CT)
Year: 2026 Accepted: 2026-09-23
Auditor: SEWARD AND MONDE

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1236170 2026-001 Material Weakness Yes L
1236171 2026-002 Material Weakness Yes E

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects $12.85M Yes 0
14.195 Section 8 Housing Assistance Payments Program $2.50M Yes 2
14.191 Multifamily Housing Service Coordinators $136,607 Yes 0

Contacts

Name Title Type
SLZGUPK9QMY1 Sabine Cox Auditee
2032304809 Michele Loso Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Davenport Residence, Inc. (Davenport Residence and Dunbar Residence), HUD Project No. 017-11230, under programs of the federal government for the fiscal year ended May 31, 2026. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations 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 Davenport Residence, Inc. (Davenport Residence and Dunbar Residence), it is not intended to and does not present the financial position, changes in net assets, or cash flows of Davenport Residence, Inc.
Davenport Residence, Inc. has received a U.S. Department of Housing and Urban Development FHA insured loan under Section 223(f) 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. The balance of the loan outstanding at May 31, 2026 consists of: CFDA Number 14.155; Program Name Section 223(f) FHA Insured Loan; Outstanding Balance at May 31, 2026 $12,590,913.

Finding Details

Finding 2026-001
Finding No. 2026-001 Program: Section 8 Housing Assistance Payments Program Federal Assistance Listing No.: 14.195 Federal Grantor: U.S. Department of Housing and Urban Development Condition: Requests for rent increases for fiscal year 2026 were not submitted timely. Criteria: HUD regulations require that a rent increase be requested at least 60 days prior to date of requested increase. Cause: Due to employee turnover and transitions. Effect: Noncompliance with HUD regulations. Context: During testing, it was noted that a rent increase effective for October 1, 2025 was submitted in December 2025. Recommendation: Management should establish procedures to ensure that rent increase requests to HUD be submitted timely. Views of Responsible Officials and Planned Corrective Actions: The proper procedure and regulatory requirements regarding timely rent increase submission have been reviewed Property Management staff for implementation effective immediately.
Finding 2026-002
Finding No. 2026-002 Program: Section 8 Housing Assistance Payments Program Federal Assistance Listing No.: 14.195 Federal Grantor: U.S. Department of Housing and Urban Development Condition: Certain tenant files at Davenport Residence, Inc., lacked compliance with HUD documentation and verification requirements. Criteria: HUD Handbook 4350.3 REV-1, Occupancy Requirements of Subsidized Multifamily Housing Programs. Cause: Due to employee turnover and transitions. Effect: Noncompliance with HUD regulations. Context: During testing, 6 of the 15 tenant files tested did not contain evidence that household income had been verified through the Enterprise Income Verification (EIV) system within 90 days of submitting move-in data to TRACS. 6 of the 15 tenant files tested were missing the required EIV Summary Report used to verify tenant personal identifiers. 8 of the 15 tenant files tested did not contain signed HUD Form 50059 documents. Recommendation: Management should establish procedures to ensure that EIV reports and HUD forms are completed in accordance with HUD requirements. Views of Responsible Officials and Planned Corrective Actions: The proper procedure and regulatory requirements for running and reviewing all EIV Reports and the completion, execution, and retention of signed HUD-50059 forms have been reviewed with Property ent staff for implementation effective immediately.