Finding Text
FINDING No. 2023-002: Section 202 – Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Resolved. Information on Universe Population Size: Total assistance revenue. Sample Size Information: All monthly PRAC requests. Identification of Repeat Finding and Finding Reference Number: No. Criteria: As required by HUD regulations, applications for renewal of PRAC contracts must be completed 120 days prior to the PRAC expiration date and any changes to rents, utility allowance, etc. must be applied to the tenants HUD - 50059 form as of the effective date upon execution of the contrat renewal. Statement of Condition: The Project did not complete the renewal process 120 days prior to the PRAC expiration date of December 1, 2023. Cause: The Project did not follow HUD regulations for a timely contract renewal resulting in the delay of HUD funding. Effect or Potential Effect: The Project is not in compliance with HUD regulations for timely renewal of PRAC contract resulting in delayed receipt of HAP funds. 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 have been adopted. Recommendation: The Project should comply with HUD regulations for timely renewal of the PRAC contract to ensure no interruption in funding. Response Indicator: Agree. Completion Date: 3/18/2024. Response: A schedule of contract renewals is in process and will be reviewed on a regular basis accordingly. New manager training is ongoing.