Audit 52119

FINDING No. 2022-001: Section 202 Supportive Housing for the Elderly, CFDA 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: Sixty-seven tenants. Sample Size Information: Ten tenants. Identification of Repeat Finding and Finding Reference Number: Yes, 2021-001. Criteria: HUD regulations require that the owner/manager must indicate on the application the date and time received; provide the form HUD-92006 (Supplemental Information to Application for Assistance) to applicants to complete, sign and date; upon receipt of an application for tenancy or assistance; sign the lease and lease addendums; perform background/credit checks prior to tenant moving into a unit; and perform income verification through the Enterprise Income Verification (EIV) certification during the recertification process. Statement of Condition: Three applications for tenancy did not have any indication of the date and time received, ten applications did not have the Form HUD-92006 attached, three tenant files did not have certain lease addendums signed by the manager, two tenant files did not have the lease signed by the manager, two tenant files did not have a background check performed prior to move-in, and one tenant file did not have an EIV verification performed during the recertification process. Cause: The manager inadvertently excluded the date and time received on applications, the manager did not provide or maintain the Form HUD-92006 for applications, did not sign and date the lease and lease addendums maintained in the tenant files, did not perform the background check prior to tenants moving in, and entered the incorrect social security number when performing EIV income verification. Effect or Potential Effect: Unable to determine date and time for the receipt of applications for proper wait listing placement and subsequent selection to occupy a unit, not maintaining files in accordance with HUD requirements, and verifying tenant eligibility and cost of assistance and residency may be disallowed. Auditor Non-Compliance Code: R ? Section 8 Program Administration Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations will be adopted. Recommendation: The Project should implement procedures to ensure all applicant and tenant documentation is properly completed and maintained, the manager verifies eligibility by obtaining all required documents for potential tenants and maintains and verifies tenant income through the EIV system in a timely manner. Response Indicator: Agree. Completion Date: 06/30/2023 Response: Individual and group manager training will be conducted in following the proper procedures when taking applications and maintaining the waiting list. A previous manager who is no longer an employee completed many of the files pulled for review. Going forward Compliance will also review random move-in files to determine that proper procedures are being followed.

FINDING No. 2022-002: Section 202 Supportive Housing for the Elderly, CFDA 14.157 Finding Resolution Status: Resolved. Information on Universe Population Size: Four move-out tenants. Sample Size Information: Four move-out tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulations require the owner must refund the full security deposit plus accrued interest and/or provide the tenant with an itemized list of any unpaid rent, damages to the unit, and an estimated cost for repaid along with a statement of the tenant?s rights under state and local laws within 21 days after the move-out date. Statement of Condition: One tenant was not refunded their security deposits within 21 days after their move-out date. Cause: The manager did not adhere to state laws and HUD regulations for refunding security deposits resulting in the untimely refund of the security deposit. Effect or Potential Effect: The Project is not in compliance with HUD regulations and state laws regarding the refunding of security deposits with the required timeframe. Auditor Non-Compliance Code: M ? Security Deposits Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations have been adopted. Recommendation: The Project should implement procedures to ensure the manager complies with state laws and HUD regulations for timely refunding of security deposits. Response Indicator: Agree. Completion Date: 07/19/2022 Response: All managers have been provided training on proper procedures inclusive of security deposit refund state laws.

FINDING No. 2022-001: Section 202 Supportive Housing for the Elderly, CFDA 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: Sixty-seven tenants. Sample Size Information: Ten tenants. Identification of Repeat Finding and Finding Reference Number: Yes, 2021-001. Criteria: HUD regulations require that the owner/manager must indicate on the application the date and time received; provide the form HUD-92006 (Supplemental Information to Application for Assistance) to applicants to complete, sign and date; upon receipt of an application for tenancy or assistance; sign the lease and lease addendums; perform background/credit checks prior to tenant moving into a unit; and perform income verification through the Enterprise Income Verification (EIV) certification during the recertification process. Statement of Condition: Three applications for tenancy did not have any indication of the date and time received, ten applications did not have the Form HUD-92006 attached, three tenant files did not have certain lease addendums signed by the manager, two tenant files did not have the lease signed by the manager, two tenant files did not have a background check performed prior to move-in, and one tenant file did not have an EIV verification performed during the recertification process. Cause: The manager inadvertently excluded the date and time received on applications, the manager did not provide or maintain the Form HUD-92006 for applications, did not sign and date the lease and lease addendums maintained in the tenant files, did not perform the background check prior to tenants moving in, and entered the incorrect social security number when performing EIV income verification. Effect or Potential Effect: Unable to determine date and time for the receipt of applications for proper wait listing placement and subsequent selection to occupy a unit, not maintaining files in accordance with HUD requirements, and verifying tenant eligibility and cost of assistance and residency may be disallowed. Auditor Non-Compliance Code: R ? Section 8 Program Administration Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations will be adopted. Recommendation: The Project should implement procedures to ensure all applicant and tenant documentation is properly completed and maintained, the manager verifies eligibility by obtaining all required documents for potential tenants and maintains and verifies tenant income through the EIV system in a timely manner. Response Indicator: Agree. Completion Date: 06/30/2023 Response: Individual and group manager training will be conducted in following the proper procedures when taking applications and maintaining the waiting list. A previous manager who is no longer an employee completed many of the files pulled for review. Going forward Compliance will also review random move-in files to determine that proper procedures are being followed.

FINDING No. 2022-002: Section 202 Supportive Housing for the Elderly, CFDA 14.157 Finding Resolution Status: Resolved. Information on Universe Population Size: Four move-out tenants. Sample Size Information: Four move-out tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulations require the owner must refund the full security deposit plus accrued interest and/or provide the tenant with an itemized list of any unpaid rent, damages to the unit, and an estimated cost for repaid along with a statement of the tenant?s rights under state and local laws within 21 days after the move-out date. Statement of Condition: One tenant was not refunded their security deposits within 21 days after their move-out date. Cause: The manager did not adhere to state laws and HUD regulations for refunding security deposits resulting in the untimely refund of the security deposit. Effect or Potential Effect: The Project is not in compliance with HUD regulations and state laws regarding the refunding of security deposits with the required timeframe. Auditor Non-Compliance Code: M ? Security Deposits Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations have been adopted. Recommendation: The Project should implement procedures to ensure the manager complies with state laws and HUD regulations for timely refunding of security deposits. Response Indicator: Agree. Completion Date: 07/19/2022 Response: All managers have been provided training on proper procedures inclusive of security deposit refund state laws.