Finding Text
Assistance Listing (Federal award identification number and year): Section 8 Housing Assistance Payments Program Assistance Listing No. 14.195 (FL29-M000-038 and 1981)
Auditor non-compliance code: R - Section 8 Program Administration
Finding resolution status: Cleared
Universe population size: 73 resident files
Sample size information: 8 resident files
Statistically valid sample: Yes
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: N/A
Statement of condition #2024-002: During the period January 1, 2024 through December 12, 2024 (before sale), 4 of the 8 resident files selected for testing under the HUD Consolidated Audit Guide could not be obtained.
Criteria: In accordance with the HAP Contract and HUD Handbook 4350.3, the Company must certify and recertify residents and update other applicable forms in accordance with HUD regulations and contractual requirements.
Effect: The Company is not in compliance with the terms of the HAP Contract or HUD Handbook 4350.3. Current, future, and potentially prior funding under the HAP Contract could be impacted as a result of these resident files.
Cause: The Property was sold on December 13, 2024. After the sale was completed, the Agent no longer had access to the resident files.
Recommendation: The Agent should request the missing resident files from the new owners.
Management's response: The Agent concurs with the recommendation. The Agent had made multiple attempts to obtain the resident files from the new owners, but the Agent has been unable to obtain the resident files. No further action is required due to the sale of the Property.