Finding Text
Criteria - Eligibility
Management is responsible for determining tenant eligibility and maintaining lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized
Multifamily Housing Programs.
Condition
In connection with our lease file review, we noted the following deficiencies:
1 out of 9 tenants tested did not have the accurate amount of adjusted annual income reported on HUD Form 50059 and did not utilized the Enterprise Income Verification system timely.
7 out of 9 tenants tested did not utilize the Enterprise Income Verification system timely.
Cause
The Project failed to follow the policies and procedures which have been established for proper tenant file maintenance and determining tenant eligibility in accordance with HUD guidelines.
Effect or Potential Effect
The procedures for determining tenant 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.
Context
A sample of 9 tenant files from a population of 82 were selected. We identified exceptions in 8 out of the 9 files tested. The sample in not a statistically valid sample.
Identification as a Repeat Finding
Repeat finding of Finding No. 2022-001
Questioned Costs
None
Recommendation
Management should establish procedures and monitor compliance with those procedures to ensure that the determination of tenant eligibility and the maintenance of lease files are in accordance with guidelines specified by HUD.
Auditor Noncompliance Code: R - Section 8 program administration
Finding Resolution Status: In-Process
Views of Responsible Officials
Going forward, management will ensure that the EIV system is utilized correctly and timely. Tenant files have been noted on the late EIV reports. Management is now running EIV reports from corporate to eliminate the pate processing or missing EIV reports.