Finding 1054813 (2023-001)

C. Federal Award Findings and Questioned Costs Finding No. 2023-001- Tenants are not recertified timely 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. Condition In connection with our review of 26 lease files we noted the following deficiency: 5 files did not have timely recertification of tenants and income verification documentation was performed later than the required recertification date. Cause Management's policies with respect to the determination of eligibility and the maintenance of tenant lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs were not consistently followed. Effect The procedures for determining tenant security deposits and eligibility and maintaining tenant lease files were not consistently applied in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. This could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Recommendation Management should establish procedures and monitor compliance with those procedures to ensure 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. . Reporting Views of Responsible Officials Management has addressed the issue by recertifying the tenants and does not expect late recertifications to occur again. Auditor Noncompliance Code E- Eligibility