Finding Text
Finding # 2024-006
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: HUD Handbook 4350.3, Chapter 6, Section 1 Part 6-5B, "the head of household, spouse, any individual listed as co-head, and all adult members of the household must sign the lease, HUD issued lease addendums, and owner's lease addendums".
Statement of Condition / Context: Of the 3 files tested, noted 2 files did not have all tenants listed on the lease and HUD addendums as required by HUD Handbook 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 6, Section 1 6-5B and ensure that leases and addendums 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 6, Section 1 6-5B. All tenants will be listed on the leases and required HUD addendums.
"