Finding Text
2023-001 - COMPLIANCE REQUIREMENT ELIGIBILITY: STATEMENT OF CRITERIA: THE SECTION 811 PROJECT RENTAL ASSISTANCE PROGRAM (PRAC), INDICATES THAT TENTANTS MUST HAVE VERY LOW-INCOME AND AT LEAST ONE ADULT MEMBER OF THE HOUSEHOLD MUST HAVE A DISABILITY. STATEMENT OF CONDITION: DURING THE YEAR, A TENANT WAS ADMITTED TO THE PROPERTY THAT DID NOT MEET THE "VERY LOW-INCOME" LEVEL. STATEMENT OF CAUSE: STAFF INCORRECTLY BELIEVED THAT THE PROJECT WAS SUBJECT TO "LOW-INCOME" LEVEL INSTEAD OF "VERY LOW-INCOME" LEVEL. STATEMENT OF EFFECT: THE PROJECT IS IN VIOLATION OF 24 CFR 891.305 AND HUD COULD IMPOSE CORRECTIVE ACTION. RECOMMENDATION: MANAGEMENT OF THE PROJECT SHOULD UPDATE THEIR UNDERSTANDING OF INCOME LEVELS ALLOWED AND IMPLEMENT A CONTROL TO HAVE OVERSIGHT ON NEW TENANT QUALIFICATIONS. MANAGEMENT RESPONSE: SEE CORRECTIVE ACTION PLAN FOR MANAGEMENT'S REPONSE.