Finding 1096685 (2024-002)

2024-002 – Supportive Housing for Elderly Persons ALN 14.182 Statement of Condition: During the audit, we noted that the Project failed to complete and submit recertifications within the required timeframe, leading to significant subsequent adjustments to project subsidy. Criteria: Per HUD Handbook 4350.3, management agents of HUD-assisted properties, are required to complete tenant recertifications annually. Recertifications must be completed within 12 months of the last certification and submitted timely to HUD’s Tenant Rental Assistance Certification System (TRACS). Effect of Condition: Late recertifications can lead to inaccurate tenant rent calculations and potential noncompliance with HUD requirements. Cause of Condition: The late recertifications were due to insufficient tracking and oversight of recertification deadlines by management. Recommendation: We recommend that management implement a formal process for tracking recertification deadlines, including regular reviews to ensure timely completion. Staff should receive additional training on HUD recertification requirements, and compliance monitoring procedures should be strengthened to prevent recurrence. Response: See Corrective Action Plan.