Finding Text
Finding # 2024-008
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 1, 7-4A "Owners must conduct a recertification of family income and composition at least annually."
Statement of Condition / Context: Of the 3 files tested, noted 1 file was missing the required annual recertification for the period under audit 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: We recommend the owner/agent review its policies and procedures to 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: The file in question contained completed recertification forms that were missing tenant signatures. HCEB will obtain signatures and place the recertification forms into the tenant file. All future completed recertifications will include tenant signatures.