Finding Text
Finding reference number: #2023-001
CFDA title and number (federal award identification number and year): Mortgage Insurance for Rental Housing, CFDA No. 14.134 (Project identification number 073-35311, 2007)
Auditor non-compliance code: J – Unauthorized management fees
Finding resolution status: Outstanding
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size is not applicable to the finding.
Statistically valid sample: Not applicable
Name of federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: Not applicable
Questioned costs: $10,483
Statement of condition of #2023-001 (CFDA No. 14.134): The Corporation did not obtain a HUD approved management certification (HUD Form 9839-B) for the new management agent effective beginning September 1, 2023.
Criteria: The Regulatory Agreement requires the Property to have a HUD approved management certification (HUD Form 9839-B) in order to manage the Property.
Effect or potential effect: The Corporation is not in compliance with the Regulatory Agreement.
Cause: The Corporation has not received HUD's approval of the management certification.
Recommendation: The management certification should be submitted to HUD for retroactive approval for the period beginning September 1, 2023.
Completion date: Outstanding
Reporting response: The Corporation concurs with the recommendation and will submit the management certification to HUD for approval retroactively.