Corrective Action Plans

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CORRECTIVE ACTION PLAN St. Camillus Residential Health Care Facility respectfully submits the following corrective action plan for the year ended December 31, 2023. Name and address of independent public accounting firm: Bonadio & Co., LLP 432 N. Franklin Street, Suite 100 Syracuse, New York 1320...
CORRECTIVE ACTION PLAN St. Camillus Residential Health Care Facility respectfully submits the following corrective action plan for the year ended December 31, 2023. Name and address of independent public accounting firm: Bonadio & Co., LLP 432 N. Franklin Street, Suite 100 Syracuse, New York 13204 Audit Period: January 1, 2023 – December 31, 2023 The finding from the 2023 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. Finding 2023-001 - Section 232 HUD Insured Mortgage, 14.129 Condition: St. Camillus Residential Health Care Facility (the Facility) has an outstanding receivable from its affiliate, Integrity Home Care Services, Inc. (Integrity), amounting to $435,362. Recommendation: The Facility management should contact HUD representative if the previously communicated repayment plan changed significantly. Action Taken: Integrity Home Care Services, Inc is in the process of being sold to Comfort Care 247. All proceeds from the sale will go towards the repayment of the receivable balance. The sale is currently under review by the New York State Department of Health. If you have any questions regarding this plan, please contact Michael Zingaro at 315-703-0646 or via email at Michael.Zingaro@St-Camillus.org Sincerely, Michael Zingaro Vice President of Finance St. Camillus RHCF
Finding 392365 (2023-001)
Significant Deficiency 2023
Section 202 Supportive Housing for the Elderly – Assistance Listing No. 14.157 Recommendation: The Auditors recommend that the Organization obtain approval from HUD to repay the loan advances after the initial due date and to establish internal controls to monitor the repayment of loan advances to e...
Section 202 Supportive Housing for the Elderly – Assistance Listing No. 14.157 Recommendation: The Auditors recommend that the Organization obtain approval from HUD to repay the loan advances after the initial due date and to establish internal controls to monitor the repayment of loan advances to ensure compliance with HUD requirements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Procedures have been put in place that all replacement reserve requests due to cash shortfalls are elevated to the VP of Operations who will ensure a plan is in place for timely repayment. Name(s) of the contact person(s) responsible for corrective action: Steve Lodi Planned completion date for corrective action plan: March 21, 2024.
Name of Auditee: Drake Manor Housing Development Fund Corporation Name of Audit Firm: EFPR Group, CPAs, PLLC Period Covered by the Audit: Year ended December 31, 2023 CAP Prepared by: Brian Tasso, Controller Phone: 781-932-9229 (A) Current Finding on the Schedule of Findings and Responses (3) Audit ...
Name of Auditee: Drake Manor Housing Development Fund Corporation Name of Audit Firm: EFPR Group, CPAs, PLLC Period Covered by the Audit: Year ended December 31, 2023 CAP Prepared by: Brian Tasso, Controller Phone: 781-932-9229 (A) Current Finding on the Schedule of Findings and Responses (3) Audit Finding 2023-003 - Financial Reporting (d) Comments on the finding and recommendation: Management agrees with the finding. (e) Actions Taken: Management has taken appropriate actions to timely submit the audit information. (f) Anticipated Completion Date: Management anticipates timely filing the required financial information for December 31, 2023 by the due date of March 31, 2024.
Name of Auditee: Drake Manor Housing Development Fund Corporation Name of Audit Firm: EFPR Group, CPAs, PLLC Period Covered by the Audit: Year ended December 31, 2023 CAP Prepared by: Brian Tasso, Controller Phone: 781-932-9229 (A) Current Finding on the Schedule of Findings and Responses (2) Audit ...
Name of Auditee: Drake Manor Housing Development Fund Corporation Name of Audit Firm: EFPR Group, CPAs, PLLC Period Covered by the Audit: Year ended December 31, 2023 CAP Prepared by: Brian Tasso, Controller Phone: 781-932-9229 (A) Current Finding on the Schedule of Findings and Responses (2) Audit Finding 2023-002 - Unauthorized Use of Project Funds (a) Comments on the finding and recommendation: Management agrees with the finding. (b) Actions Taken: Management will deposit the $17,167 as soon as possible. (c) Anticipated Completion Date: Management anticipates this finding will be resolved by December 31, 2024.
Name of Auditee: Drake Manor Housing Development Fund Corporation Name of Audit Firm: EFPR Group, CPAs, PLLC Period Covered by the Audit: Year ended December 31, 2023 CAP Prepared by: Brian Tasso, Controller Phone: 781-932-9229 (A) Current Finding on the Schedule of Findings and Responses (1) Audit ...
Name of Auditee: Drake Manor Housing Development Fund Corporation Name of Audit Firm: EFPR Group, CPAs, PLLC Period Covered by the Audit: Year ended December 31, 2023 CAP Prepared by: Brian Tasso, Controller Phone: 781-932-9229 (A) Current Finding on the Schedule of Findings and Responses (1) Audit Finding 2023-001 - Supportive Housing for the Elderly - 14.157 (a) Comments on the finding and recommendation: Management agrees with the finding. (b) Actions Taken: Management will deposit the $4,749 as soon as cash flow permits. (c) Anticipated Completion Date: Management anticipates this finding will be resolved by December 31, 2024.
Finding: 2023-001 – Compliance and Controls over Compliance – Eligibility Supportive Housing for Persons with Disabilities (Section 811), CFDA No. 14.181 Material Weakness & Noncompliance In 2023, Home Share did not have controls in place to ensure that eligibility criteria and rent calculations w...
Finding: 2023-001 – Compliance and Controls over Compliance – Eligibility Supportive Housing for Persons with Disabilities (Section 811), CFDA No. 14.181 Material Weakness & Noncompliance In 2023, Home Share did not have controls in place to ensure that eligibility criteria and rent calculations were being reviewed and/or approved by someone other than the individual making the initial determination or annual recertification. Actions Taken or Planned: Management agrees with this finding. Beginning in September 2023, management has changed the contractor they work with for the eligibility determination process. Management is working with the contractor to include a second individual in this process so that there will be a review performed by someone other than the individual making the initial determination or annual recertification. Contact Persons: Robert Pickering, Chief Financial Officer
Finding 2023-001: The Corporation did not make all of the reserve for replacement deposits as required by HUD for the year ended June 30, 2023. Comments on the Finding and Each Recommendation: Management should transfer $14,000 from the operating cash account to the reserve for replacement fund. Act...
Finding 2023-001: The Corporation did not make all of the reserve for replacement deposits as required by HUD for the year ended June 30, 2023. Comments on the Finding and Each Recommendation: Management should transfer $14,000 from the operating cash account to the reserve for replacement fund. Action(s) taken or planned on the finding: On September 1, 2023, management transferred $10,000 from the operating cash account to the reserve for replacement fund. Management will transfer the remaining $4,000 from the operating account to the reserve for replacement fund as soon as possible.
View Audit 302490 Questioned Costs: $1
Finding 2023-002: During the year ended June 30, 2023, the Community paid for payroll expenditures on behalf of other communities managed by the Agent totaling $12,960. Comments on the Finding and Each Recommendation: The other communities managed by the Agent should reimburse the Community in the a...
Finding 2023-002: During the year ended June 30, 2023, the Community paid for payroll expenditures on behalf of other communities managed by the Agent totaling $12,960. Comments on the Finding and Each Recommendation: The other communities managed by the Agent should reimburse the Community in the amount of $12,960. Action(s) taken or planned on the finding: Agree. On September 6, 2023, the Agent has issued a credit to the Community of $12,960.
View Audit 302489 Questioned Costs: $1
Finding 2023-001: The required deposit per the June 30, 2022 Computation of Surplus Cash, Distributions and Residual Receipts was not deposited to the residual receipts fund within 90 days after the fiscal year end. Comments on the Finding and Each Recommendation: Management should ensure that surpl...
Finding 2023-001: The required deposit per the June 30, 2022 Computation of Surplus Cash, Distributions and Residual Receipts was not deposited to the residual receipts fund within 90 days after the fiscal year end. Comments on the Finding and Each Recommendation: Management should ensure that surplus cash is deposited to the residual receipts account within 90 days after the fiscal year end. Action(s) taken or planned on the finding: On June 6, 2023, management transferred $6,157 from operating cash to the residual receipts account. No further action is required.
View Audit 302489 Questioned Costs: $1
Finding 2023-001: The Corporation did not make all of the reserve for replacement deposits as required by HUD for the year ended June 30, 2023. Comments on the Finding and Each Recommendation: Management should transfer $1,840 from the operating cash account to the reserve for replacement fund. Acti...
Finding 2023-001: The Corporation did not make all of the reserve for replacement deposits as required by HUD for the year ended June 30, 2023. Comments on the Finding and Each Recommendation: Management should transfer $1,840 from the operating cash account to the reserve for replacement fund. Action(s) taken or planned on the finding: On September 1, 2023, management transferred $1,840 from the operating cash account to the reserve for replacement fund.
View Audit 302486 Questioned Costs: $1
Finding 2023-001: The Corporation did not make all of the reserve for replacement deposits as required by HUD for the year ended June 30, 2023. Comments on the Finding and Each Recommendation: Management should transfer $2,236 from the operating cash account to the reserve for replacement fund. Acti...
Finding 2023-001: The Corporation did not make all of the reserve for replacement deposits as required by HUD for the year ended June 30, 2023. Comments on the Finding and Each Recommendation: Management should transfer $2,236 from the operating cash account to the reserve for replacement fund. Action(s) taken or planned on the finding: Management will transfer $2,236 from the operating cash account to the reserve for replacement fund as soon as possible.
View Audit 302479 Questioned Costs: $1
2023-007 - Special Tests – Internal Control and Compliance over Housing Quality Standards Inspections (Material Weakness) Condition: We found five (5) instances out of 9 in which the City did not conduct the HQS failed inspection follow up in a timely manner. We also noted three (3) instances out of...
2023-007 - Special Tests – Internal Control and Compliance over Housing Quality Standards Inspections (Material Weakness) Condition: We found five (5) instances out of 9 in which the City did not conduct the HQS failed inspection follow up in a timely manner. We also noted three (3) instances out of 40 samples for eligibility testing has HQS inspections that are over a year apart, which shows that the City did not conduct the HQS biennial inspection in a timely manner. Management concurs. Corrective Actions: Management has directed staff to abide by the PHA policy and HUD regulations for the HQS inspection process. Management will continue to enforce HUD regulations and the use of the PHA’s administrative plan to ensure staff will conduct the HQS biennial inspection in a timely manner. Name of Responsible Person: Ron Garcia, Director of Community Development Imelda Delgado, Housing Manager Projected Implementation Date: Immediately implemented.
2023-005 - Reporting – Internal Control and Compliance over Reporting (Material Weakness) Condition: Community Development Block Grants-Entitlement Grants Cluster The City did not submit the required Cash on Hand Quarterly Report in a timely manner. The quarterly Cash on Hand Quarterly Report for th...
2023-005 - Reporting – Internal Control and Compliance over Reporting (Material Weakness) Condition: Community Development Block Grants-Entitlement Grants Cluster The City did not submit the required Cash on Hand Quarterly Report in a timely manner. The quarterly Cash on Hand Quarterly Report for the all of the four (4) reporting periods were submitted on February 26, 2024. The City did not submit any of the four (4) quarterly Section 15011 Reports for the year ended June 30, 2023. Housing Voucher Cluster The audited Financial Data Schedule (FDS) for the fiscal year ended June 30, 2022 was not submitted on or before the March 31, 2023 due date. The unaudited Financial Data Schedule (FDS) for the fiscal year ended June 30, 2023 was not submitted on or before the August 31, 2023 due date. We also noted for 2 out of 4 VMS reports tested, there was no evidence of review and approval prior to submission to HUD. A nonstatistical sample of 4 out of 12 VMS reports were selected for test work. Management concurs. Corrective Actions: Due to large staff turnover in the Housing Department and Finance Department during the last 2 years, the reporting has been delayed. The City will submit all the approved reports stated above timely going forward. Name of Responsible Person: Ron Garcia, Director of Community Development Imelda Delgado, Housing Manager Rose Tam, Director of Finance Albert Trinh, Accounting Manager Projected Implementation Date: Immediately implemented.
Management recognizes the error made by not depositing the surplus cash in the proper account within 60 days of year end. We will address going forward.
Management recognizes the error made by not depositing the surplus cash in the proper account within 60 days of year end. We will address going forward.
Recommendation: We recommend the Authority review their process and internal controls for rent reasonableness to ensure compliance with HUD requirements and their administrative plan. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in res...
Recommendation: We recommend the Authority review their process and internal controls for rent reasonableness to ensure compliance with HUD requirements and their administrative plan. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: HAPGC will acquire and implement a rent reasonableness software system that will assist in the proper application and documentation of rent reasonableness requirements. Name(s) of the contact person(s) responsible for corrective action: Jessica Anderson-Preston Planned completion date for corrective action plan: July 31, 2024
Recommendation: We recommend the Authority review their process and internal controls for new tenants to ensure compliance with HUD requirements and their administrative plan. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response t...
Recommendation: We recommend the Authority review their process and internal controls for new tenants to ensure compliance with HUD requirements and their administrative plan. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Under the leadership of the newly appointed Executive Director, HAPGC will develop and implement to internal control policies to ensure waiting list selection notices are properly documented in client files, and voucher forms and HAP contracts are appropriately executed. Additional efforts will be placed on increasing the number internal quality control reviews performed of re-examination transactions to ensure adherence to the above listed compliance items. Name(s) of the contact person(s) responsible for corrective action: Jessica Anderson-Preston Planned completion date for corrective action plan: November 30, 2024.
Recommendation: We recommend the Authority review their process and internal controls over eligibility to ensure compliance with HUD requirements and their administrative plan. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response t...
Recommendation: We recommend the Authority review their process and internal controls over eligibility to ensure compliance with HUD requirements and their administrative plan. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Under the leadership of the newly appointed Executive Director, HAPGC will assess the overall operations of the Housing Choice Voucher Program. The assessment will include the following: a review of the overall effectiveness of the current voucher department management, a review and comprehensive update of the Administrative Plan; comprehensive staff training on the proper implementation and correct calculation and documentation of HUD program eligibility requirements including but not limited to income, assets, and expenses related to deductions from annual income and other factors that affect the determination of adjusted income. HAPGC will also implement policies to ensure the timely completion of annual re-examinations, and the proper retainage of supporting documentation for re-examination actions. Additional efforts will be placed on increasing the number internal quality control reviews performed of re-examination transactions to ensure adherence to the above listed compliance items. Efforts will also be place on increasing staffing levels and decreasing the amount of time required to fill vacant positions. Name(s) of the contact person(s) responsible for corrective action: Jessica Anderson-Preston Planned completion date for corrective action plan: November 30, 2024.
View Audit 302221 Questioned Costs: $1
Oversight agency for audit: U.S. Department of Housing and Urban Development Mount St. Mary's Housing Development Fund Company, Inc. respectfully submits the following corrective action plan for the year ended December 31, 2023. Name and address of independent public accounting firm: EFPR Group, CPA...
Oversight agency for audit: U.S. Department of Housing and Urban Development Mount St. Mary's Housing Development Fund Company, Inc. respectfully submits the following corrective action plan for the year ended December 31, 2023. Name and address of independent public accounting firm: EFPR Group, CPAs, PLLC 6390 Main Street, Suite 200 Williamsville, NY 14221 Audit period: December 31, 2023 The finding from the December 31, 2023 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. Section I of the schedule, Summary of Auditors’ Results, does not include findings and is not addressed. (A) Findings - Financial Statement Audit None (B) Findings - Federal Award Programs Audits U.S. Department of Housing and Urban Development (1) Finding 2023-001: Section 202 Capital Advance Funding and Project Rental Assistance Contract, Assistance Listing Number 14.157 (a) Recommendation: The Company should collect the balance due as soon as possible. (b) Action Taken: In March 2024, the Company obtained the final payment to repay the $11,700 of past due receivables. Management has established a new report to monitor the shared expenses on a monthly basis and ensure timely payment of shared expenses. If the U.S. Department of Housing and Urban Development has questions regarding this plan, please call James Lonergan at 716-847-1635. Sincerely yours, _____________________________ James Lonergan, Executive Director
Finding 392042 (2023-001)
Significant Deficiency 2023
Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Finding 2023-001: Surplus cash in the amount of $29,198 from the surplus cash calculation for the year ended December 31, 2022, was not deposited into the residual receipts account until January 2024. Comments on the...
Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Finding 2023-001: Surplus cash in the amount of $29,198 from the surplus cash calculation for the year ended December 31, 2022, was not deposited into the residual receipts account until January 2024. Comments on the Finding and Each Recommendation Management anticipated receiving formal notification from HUD for the amount due after the audit had been completed and submitted to the Agency. Management will implement procedures in order to remit surplus cash payments due to the residual receipts account within the 90 days following fiscal year end going forward. Actions Taken on the Finding Management remitted the payment due to the residual receipts account in January 2024. Management will remit surplus cash payments due to the residual receipts account within the 90 days following fiscal year end going forward. CAP prepared by: Joshua Sroka President Atlas Realty Management Company 814-536-3573 Anticipated completion date: March 31, 2024
View Audit 302169 Questioned Costs: $1
Finding: 2023-001 - Housing Insprections. Name of Contact Person: Steven Henriquez, Chief Financial Officer. Corrective Action Plan: We have corrected the missing inspections that happened due to a staffing shortage at the time. Moving forward, all new move-ins and move-outs are to be inspected by C...
Finding: 2023-001 - Housing Insprections. Name of Contact Person: Steven Henriquez, Chief Financial Officer. Corrective Action Plan: We have corrected the missing inspections that happened due to a staffing shortage at the time. Moving forward, all new move-ins and move-outs are to be inspected by CHF staff, with repairs to be done to correct any deficiencies. Proposed Implementation Date: Implemented December 31, 2023.
Views of Responding Officials: The Department agrees with the finding and will implement corrective action. Corrective Action Taken or Planned: The Supplemental Nutrition and Assistance Program office has worked with Statewide Branch and Staff Development offices to address refresher training ass...
Views of Responding Officials: The Department agrees with the finding and will implement corrective action. Corrective Action Taken or Planned: The Supplemental Nutrition and Assistance Program office has worked with Statewide Branch and Staff Development offices to address refresher training associated with budget calculations including the documentation and input of all data correctly. The Department is also in process of finalizing the new eligibility system – Benefit Eligibility Solution – slated to rollout statewide by late October 2024. As a condition of system rollout, all staff will be required to go through system training which will include a reinforcement of data entry practices and documentation requirements as a condition of eligibility determination. Expected Completion Date: October 31, 2024 Responding Officials: Ginet Hayes, Supplemental Nutrition and Assistance Administrator
View Audit 302108 Questioned Costs: $1
St. Francis School District has taken steps to ensure all transactions expensed to district funds including federal and state funds are properly reviewed by appropriate parties with knowledge of allowable costs and the specific expense incurred. Prior to Items being purchased with grant funds all re...
St. Francis School District has taken steps to ensure all transactions expensed to district funds including federal and state funds are properly reviewed by appropriate parties with knowledge of allowable costs and the specific expense incurred. Prior to Items being purchased with grant funds all requests are to be approved by the budget manager who oversees the specific funds. Orders may only be placed once approval is received from the budget manager and the Director of Finance. Payment of an invoice is not to be made until service has been rendered complete or item has been received in full. Budget managers approve all invoices prior to Director of Finance reviewing for final approval of payment.
Finding No. 2023-016 Department(s): New York City Housing Preservation & Development Program(s): Assistance Listing Number 14.871, Housing Voucher Cluster: Section 8 Housing Choice Vouchers Corrective Action(s): During the pandemic, HPD adopted HUD CARES Act waivers, intended to minimize health ...
Finding No. 2023-016 Department(s): New York City Housing Preservation & Development Program(s): Assistance Listing Number 14.871, Housing Voucher Cluster: Section 8 Housing Choice Vouchers Corrective Action(s): During the pandemic, HPD adopted HUD CARES Act waivers, intended to minimize health and safety risks to applicants, participants, owners and staff, and which included the temporary suspension of adverse actions. Although HPD continued to request recertification packages during the period of the waivers until today, from February 2020 through December 2021, HPD did not penalize families who did not submit complete recertification packages. Additionally, HPD is among the City agencies that experienced a staff retention crisis, with attrition rates among its Rental Subsidy Program administrative teams swelling from 12 percent in 2020 to 27 percent in 2022. During the audit period, HPD was experiencing its highest vacancy rate. This meant standard recertifications were delayed because participants did not respond to recertification packages they were asked to complete, HPD did not have the capacity to revoke subsidies for those who did not comply, and the agency had significant backlog as a result of staff vacancies. Though HPD’s vacancy rate improved, it takes significant time to train and prepare staff to do the work. Finally, even though HPD’s COVID-era policies involving adverse action have ceased and normal processes are now in effect, due process requires intensive tracking and follow up to ideally have participants comply with requirements but if necessary to terminate assistance for those who do not comply. Therefore, there will be a significant lag between the re-implementation of HPD’s policy to take enforcement actions when recertification packages are not completed or missing and HPD’s actually terminating assistance. Corrective Action(s): 1. Build on existing systems to more closely track recertifications that are mailed and not returned. 2. Develop more robust digital operations that were started during the pandemic leading to reporting capabilities that will help with tracking overdue recertifications. 3. Work more closely with Community Based Organizations that can assist participants complete and return recertification package. 4. Continue close coordination to implement the Housing Access and Stability staffing plan and identify priority hires to onboard critically needed staff timely. 5. Invest in a training team to meet the training needs of new staff. Anticipated Completion Date: April 2025 Person(s) Responsible for Implementation: Dinsiri Fikru, Assistant Commissioner, Division of Program Policy and Innovation, Office of Housing Access and Stability FIKRUD@hpd.nyc.gov
Finding No. 2023-015 Department(s): New York City Housing Preservation & Development Program(s): Assistance Listing Numbers: 14.249, Section 8 Project-Based Cluster: Section 8 Moderate Rehabilitation Single Room Occupancy 14.856, Section 8 Project-Based Cluster: Lower Income Housing Assistance P...
Finding No. 2023-015 Department(s): New York City Housing Preservation & Development Program(s): Assistance Listing Numbers: 14.249, Section 8 Project-Based Cluster: Section 8 Moderate Rehabilitation Single Room Occupancy 14.856, Section 8 Project-Based Cluster: Lower Income Housing Assistance Program – Section 8 Moderate Rehabilitation Corrective Action(s): These deficiencies result from HPD adopting HUD CARES Act waivers, intended to minimize health and safety risks to applicants, participants, owners and staff, and which included the temporary suspension of inspections and adverse actions. HPD conducted limited inspections and did not take enforcement action during the waiver period of 2/1/2020 through 12/31/2021. These waivers ended in 2022 in the midst of a significant HPD staffing shortage. HPD is among the City agencies that experienced a staff retention crisis, with attrition rates among its Housing Maintenance Code inspection team that mirrored the 27 percent experienced in HPD’s rental subsidy program administration team. Although HPD’s COVID-era policies have ceased, and normal processes are now in effect, it will take a significant period of time for full standard operations to resume. Corrective Action(s): 1. Develop a detailed tracking process for routine inspection scheduling. 2. Prioritize inspections for units that are upcoming or those that have gone the longest without an inspection. 3. Develop a detailed tracking and follow up process for enforcing failed inspections. 4. Make every effort to ensure staff vacancy rates are addressed through in house recruitment or other means as needed. Anticipated Completion Date: April 2025 Person(s) Responsible for Implementation: Dinsiri Fikru, Assistant Commissioner, Division of Program Policy and Innovation, Office of Housing Access and Stability FIKRUD@hpd.nyc.gov
Finding No. 2023-014 Department(s): New York City Housing Preservation & Development Program(s): Assistance Listing Numbers: 14.249, Section 8 Project-Based Cluster: Section 8 Moderate Rehabilitation Single Room Occupancy 14.856, Section 8 Project-Based Cluster: Lower Income Housing Assistance P...
Finding No. 2023-014 Department(s): New York City Housing Preservation & Development Program(s): Assistance Listing Numbers: 14.249, Section 8 Project-Based Cluster: Section 8 Moderate Rehabilitation Single Room Occupancy 14.856, Section 8 Project-Based Cluster: Lower Income Housing Assistance Program – Section 8 Moderate Rehabilitation Corrective Action(s): During the pandemic, HPD adopted HUD CARES Act waivers, intended to minimize health and safety risks to applicants, participants, owners and staff, and which included the temporary suspension of adverse actions. Although HPD continued to request recertification packages during the period the waivers, February 2020 through December 2021, HPD did not penalize families who did not submit complete recertification packages at that time until more recently. Additionally, HPD is among the City agencies that experienced a staff retention crisis, with attrition rates among its Rental Subsidy Program administrative teams swelling from 12 percent in 2020 to 27 percent in 2022. During the audit period, HPD was experiencing its highest vacancy rate. This meant standard recertifications were delayed because participants did not respond to recertification packages they were asked to complete, HPD did not have the capacity to revoke subsidies for those who did not comply, and the agency had significant backlog as a result of staff vacancies. Though HPD’s vacancy rate improved, it takes significant time to train and prepare staff to do the work. Finally, even though HPD’s COVID-era policies involving adverse action have ceased and normal processes are now in effect, due process requires intensive tracking and follow-up to ideally have participants comply with requirements (but if necessary to terminate assistance for those who do not comply). Therefore, there will be a significant lag between the re-implementation of HPD’s policy to take enforcement actions when recertification packages are not completed or missing and HPD’s actually terminating assistance. Corrective Action(s): 1. Build on existing systems to more closely track recertifications that are mailed and not returned. 2. Develop more robust digital operations that were started during the pandemic leading to reporting capabilities that will help with tracking overdue recertifications. 3. Work more closely with Community Based Organizations that can assist participants complete and return recertification package. 4. Continue close coordination to implement the Housing Access and Stability staffing plan and identify priority hires to onboard critically needed staff timely. 5. Invest in a training team to meet the training needs of new staff. Anticipated Completion Date: April 2025 Person(s) Responsible for Implementation: Dinsiri Fikru, Assistant Commissioner, Division of Program Policy and Innovation, Office of Housing Access and Stability FIKRUD@hpd.nyc.gov
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