Finding Text
Finding # 2024-005
Federal Grantor: U.S. Department of Housing and Urban Development
AL # / Program: 14.181 - Supportive Housing for Persons with Disabilities
Type of Finding: Federal Award - Eligibility
Finding Resolution Status: In Process
Information on Universe Population Size: Lincoln Street Housing, Inc. owns a project with a total of 10 units of supportive housing for persons with disabilities in Fremont.
Sample size information: Audit procedures were performed on 3 tenant lease files.
Criteria: Per HUD Handbook 4350.3, Chapter 7, Section 7-4A "Owners must obtain third-party verification directly from the third party source for the following items: (a) Annual income from wages, unemployment, and Social Security benefits, (b) Reported family annual income from sources not reporting income data to the EIV system".
Statement of Condition / Context: Of the 3 files tested, noted 2 of the files did not have third party verification support for amounts listed on the Form HUD-50059 recertifications as required by HUD Handbooks and Regulations.
Cause: Internal control over compliance with program compliance requirements are not operating effectively.
Effect or Potential Effect: The Project is out of compliance with the Capital Advance Program Regulatory Agreement on form HUD-92466-CA.
Auditor Non-Compliance Code: R - Section 8 Program Administration
Questioned Costs: No questioned costs associated with this finding.
Recommendations: Management to review HUD Handbook 4350.3, Chapter 7, Section 1, 7-4A and ensure that annual recertification are performed and maintained in tenant file.
Response Indicator: Agree
Completion Date: 6/30/2025
Reporting Views of Responsible Officials and Planned Corrective Action: By April 30, 2025, HCEB will engage A&E Housing Group to complete a file audit for the 10 units of supportive housing for persons with disabilities in Fremont in accordance with HUD Handbook 4350.3, Chapter 7, Section 1, 7-4A. All missing documents will be completed, reviewed, and signed by the households.