Finding Text
FINDING No. 2024-001: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Rental Housing Projects, ALN 14.155
Finding Resolution Status: Unresolved.
Information on Universe Population Size: One hundred nineteen tenants.
Sample Size Information: Twenty tenants.
Identification of Repeat Finding and Finding Reference Number: No.
Criteria: HUD regulation requires all initial and ongoing tenant eligibility documentation to be obtained timely and maintained during tenancy. Additionally, unit inspections must be performed annually.
Statement of Condition: Missing documentation in tenant files:
• Two Form 50059 were signed after the effective date by the tenants.
• One tenant file was unable to be obtained.
• One tenant file did not contain a background check.
• Three tenant files did not contain annual unit inspection reports.
Cause: The Project did not maintain appropriate tenant eligibility documentation as required by HUD.
Effect or Potential Effect: Unable to verify tenant eligibility and cost of assistance may be disallowed.
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 will be adopted. Recommendation: The Project should implement procedures to ensure that initial and ongoing tenant eligibility documentation is obtained timely, and that unit inspections are performed annually.
Response Indicator: Agree.
Completion Date: 3/31/2025
Response: Staff training has been provided with additional HUD training inclusive of EIV reporting and included in monthly report procedures.