Finding 1131706 (2024-001)

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Requirement
N
Questioned Costs
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Year
2024
Accepted
2025-04-17
Audit: 353899
Organization: Schoolhouse Apartments, Inc. (CT)
Auditor: Seward and Monde

AI Summary

  • Issue: Rent increase requests for FY 2024 were submitted late, violating HUD regulations.
  • Requirements Impacted: HUD mandates that requests must be made at least 60 days before the increase date.
  • Follow-Up: Management has improved tracking and established monthly meetings to ensure timely submissions moving forward.

Finding Text

Statement of Condition: Requests for rent increases for FY 2024 were not submitted timely. Criteria: HUD regulations require that a rent increase be requested at least 60 days prior to date of requested increase. Effect: Noncompliance with HUD regulations. Cause: Due to employee turnover and transitions. Context: During testing, it was noted that a rent increase effective for January 1, 2024 was submitted on March 7, 2024. Recommendation: Management should establish procedures to ensure that rent increase requests to HUD be submitted timely. Management’s Response and Corrective Action Plan: Management has since revised the Budget Process, to include improved tracking and regular monthly update meetings with all relevant departments to ensure timely submissions for rental increases and affiliated paperwork, effective immediately.

Categories

HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $2.78M
14.195 Section 8 Housing Assistance Payments Program $646,104