Department of Housing and Urban Development Finding 2022-001 Section 202 Supportive Housing for the Elderly, AL 14.157 Statement of Condition The Project management was unable to provide a copy of the HUD approved management agent certification (HUD Form 9839) in effect for the period November 12, 2021 to May 10, 2022 (day before sale). Criteria HUD management agent certifications are required to be submitted to and approved by HUD. Cause The procedures in place to ensure that documentation of HUD approval of the management agent was retained were not followed. Effect or Potential Effect The management agent may not have been approved by HUD to provide services to the Organization. Questioned Costs None Recommendation The property obtained a HUD-approved management agent certification effective upon sale of the property on May 11, 2022. Additionally, the management company has prior HUD approval for other entities, and no management fees were paid to the new management agent during the audit period. Auditor Noncompliance Code: Z - Other (REAC); N - Special Tests and Provisions (UG) Finding Resolution Status: Resolved Reporting Views of Responsible Officials The Organization agrees with the finding and notes that the property has transitioned to a new owner with a HUD-approved management agent certification.
Department of Housing and Urban Development Finding 2022-002 Section 202 Supportive Housing for the Elderly, AL 14.157 Statement of Condition During the procedures applied to a sample of six tenant lease files, we noted six instances of noncompliance with HUD regulations regarding tenant eligibility and the maintenance of lease files, where the project did not maintain evidence of EIV report data in the lease file. Criteria Tenant lease files are required to be maintained and tenant eligibility determined in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Cause The project failed to follow the policies and procedures which have been established for proper tenant file maintenance and determining tenant eligibility. Effect or Potential Effect Noncompliance with HUD guidelines could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Questioned Costs None Recommendation Management should establish procedures and monitor compliance with those procedures to insure 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. Auditor Noncompliance Code: R - Section 8 program administration (REAC); E - Eligibility (UG) Finding Resolution Status: Unresolved Views of Responsible Officials Management agrees with the finding. The property was sold subsequent to year end with HUD approval and all tenant files were transferred to buyer. Therefore we consider this matter closed.
Department of Housing and Urban Development Finding 2022-001 Section 202 Supportive Housing for the Elderly, AL 14.157 Statement of Condition The Project management was unable to provide a copy of the HUD approved management agent certification (HUD Form 9839) in effect for the period November 12, 2021 to May 10, 2022 (day before sale). Criteria HUD management agent certifications are required to be submitted to and approved by HUD. Cause The procedures in place to ensure that documentation of HUD approval of the management agent was retained were not followed. Effect or Potential Effect The management agent may not have been approved by HUD to provide services to the Organization. Questioned Costs None Recommendation The property obtained a HUD-approved management agent certification effective upon sale of the property on May 11, 2022. Additionally, the management company has prior HUD approval for other entities, and no management fees were paid to the new management agent during the audit period. Auditor Noncompliance Code: Z - Other (REAC); N - Special Tests and Provisions (UG) Finding Resolution Status: Resolved Reporting Views of Responsible Officials The Organization agrees with the finding and notes that the property has transitioned to a new owner with a HUD-approved management agent certification.
Department of Housing and Urban Development Finding 2022-002 Section 202 Supportive Housing for the Elderly, AL 14.157 Statement of Condition During the procedures applied to a sample of six tenant lease files, we noted six instances of noncompliance with HUD regulations regarding tenant eligibility and the maintenance of lease files, where the project did not maintain evidence of EIV report data in the lease file. Criteria Tenant lease files are required to be maintained and tenant eligibility determined in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Cause The project failed to follow the policies and procedures which have been established for proper tenant file maintenance and determining tenant eligibility. Effect or Potential Effect Noncompliance with HUD guidelines could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Questioned Costs None Recommendation Management should establish procedures and monitor compliance with those procedures to insure 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. Auditor Noncompliance Code: R - Section 8 program administration (REAC); E - Eligibility (UG) Finding Resolution Status: Unresolved Views of Responsible Officials Management agrees with the finding. The property was sold subsequent to year end with HUD approval and all tenant files were transferred to buyer. Therefore we consider this matter closed.
Department of Housing and Urban Development Finding 2022-001 Section 202 Supportive Housing for the Elderly, AL 14.157 Statement of Condition The Project management was unable to provide a copy of the HUD approved management agent certification (HUD Form 9839) in effect for the period November 12, 2021 to May 10, 2022 (day before sale). Criteria HUD management agent certifications are required to be submitted to and approved by HUD. Cause The procedures in place to ensure that documentation of HUD approval of the management agent was retained were not followed. Effect or Potential Effect The management agent may not have been approved by HUD to provide services to the Organization. Questioned Costs None Recommendation The property obtained a HUD-approved management agent certification effective upon sale of the property on May 11, 2022. Additionally, the management company has prior HUD approval for other entities, and no management fees were paid to the new management agent during the audit period. Auditor Noncompliance Code: Z - Other (REAC); N - Special Tests and Provisions (UG) Finding Resolution Status: Resolved Reporting Views of Responsible Officials The Organization agrees with the finding and notes that the property has transitioned to a new owner with a HUD-approved management agent certification.
Department of Housing and Urban Development Finding 2022-002 Section 202 Supportive Housing for the Elderly, AL 14.157 Statement of Condition During the procedures applied to a sample of six tenant lease files, we noted six instances of noncompliance with HUD regulations regarding tenant eligibility and the maintenance of lease files, where the project did not maintain evidence of EIV report data in the lease file. Criteria Tenant lease files are required to be maintained and tenant eligibility determined in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Cause The project failed to follow the policies and procedures which have been established for proper tenant file maintenance and determining tenant eligibility. Effect or Potential Effect Noncompliance with HUD guidelines could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Questioned Costs None Recommendation Management should establish procedures and monitor compliance with those procedures to insure 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. Auditor Noncompliance Code: R - Section 8 program administration (REAC); E - Eligibility (UG) Finding Resolution Status: Unresolved Views of Responsible Officials Management agrees with the finding. The property was sold subsequent to year end with HUD approval and all tenant files were transferred to buyer. Therefore we consider this matter closed.
Department of Housing and Urban Development Finding 2022-001 Section 202 Supportive Housing for the Elderly, AL 14.157 Statement of Condition The Project management was unable to provide a copy of the HUD approved management agent certification (HUD Form 9839) in effect for the period November 12, 2021 to May 10, 2022 (day before sale). Criteria HUD management agent certifications are required to be submitted to and approved by HUD. Cause The procedures in place to ensure that documentation of HUD approval of the management agent was retained were not followed. Effect or Potential Effect The management agent may not have been approved by HUD to provide services to the Organization. Questioned Costs None Recommendation The property obtained a HUD-approved management agent certification effective upon sale of the property on May 11, 2022. Additionally, the management company has prior HUD approval for other entities, and no management fees were paid to the new management agent during the audit period. Auditor Noncompliance Code: Z - Other (REAC); N - Special Tests and Provisions (UG) Finding Resolution Status: Resolved Reporting Views of Responsible Officials The Organization agrees with the finding and notes that the property has transitioned to a new owner with a HUD-approved management agent certification.
Department of Housing and Urban Development Finding 2022-002 Section 202 Supportive Housing for the Elderly, AL 14.157 Statement of Condition During the procedures applied to a sample of six tenant lease files, we noted six instances of noncompliance with HUD regulations regarding tenant eligibility and the maintenance of lease files, where the project did not maintain evidence of EIV report data in the lease file. Criteria Tenant lease files are required to be maintained and tenant eligibility determined in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Cause The project failed to follow the policies and procedures which have been established for proper tenant file maintenance and determining tenant eligibility. Effect or Potential Effect Noncompliance with HUD guidelines could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Questioned Costs None Recommendation Management should establish procedures and monitor compliance with those procedures to insure 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. Auditor Noncompliance Code: R - Section 8 program administration (REAC); E - Eligibility (UG) Finding Resolution Status: Unresolved Views of Responsible Officials Management agrees with the finding. The property was sold subsequent to year end with HUD approval and all tenant files were transferred to buyer. Therefore we consider this matter closed.