Finding Text
Finding 2024-002: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Federal Assistance Listing Number 14.155
Criteria: Tenant files are required to contain signed copies of HUD-50059 acknowledging agreement with the rent calculation. In addition, documentation of the tenant’s age is required to support senior status.
Condition: During our audit for 2024, we tested 5 tenant files. One HUD-50059 form was missing a tenant signature. In addition, one tenant’s file was missing documentation of the tenant’s age.
Context: We reviewed 5 tenant files for the year. One was missing a tenant signature and one was missing documentation of the tenant’s age.
Cause: Bishop Harrison Apartments has had significant turnover in the apartment manager position.
Effect: Bishop Harrison Apartments was not in compliance with the HUD file requirements.
Recommendation: We recommend that Bishop Harrison Apartments review tenant files to ensure all required signatures and documentation of age have been obtained.
Views of Responsible Officials and Planned Corrective Actions: Bishop Harrison Apartments agrees with the finding and the auditor’s recommendations have been adopted. Bishop Harrison Apartments replaced the apartment manager after year-end and has reviewed all files to ensure appropriate documentation and calculations.