Finding Text
Finding 2023-001: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Section 223(f)/207)
Statement of Condition: During the year ending December 31, 2023, the Organization did not obtain the required signature of a tenant on the HUD-50059 at recertification.
Criteria: HUD Handbook 4530.3 REV-1 CHG-3, Chapter 7 section 3 states that signature of the head, co-head, spouse and all other adult members of the household on the HUD-50059 are required prior to submitting to the Contract Administrator or HUD.
Effect: Noncompliance with HUD regulations and potential errors in rental assistance.
Cause: Management oversight.
Context: Of the seven tenant files tested for eligibility compliance, one of the files did not have the signature of the tenant on the HUD-50059 prior to submitting to HUD/TRACs.
Questioned Costs: $0
Recommendation: We recommend that the management ensure the required household members sign the HUD-50059 prior to submitting to HUD.
Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding and obtained the required signatures on the HUD-50059. Management will ensure that all required signatures are obtained on all Form HUD-50059's prior to submitting to HUD going forward.