Finding Text
Finding 2024-001: U.S. Department of Housing and Urban Development, Supportive Housing for Persons with Disabilities (Section 811)
Statement of Condition: During the year ending June 30, 2024, required annual tenant recertifications were not conducted.
Criteria: According to HUD Handbook 4350.3, tenants are required to be recertified annually to ensure they still meet program requirements. The recertification process ensures that tenant's income and family composition are verified annually to determine continued eligibility for assistance and to adjust rent payments accordingly.
Effect: Noncompliance with HUD regulations and potential errors in rental assistance, as well as the suspension of subsidy payments by HUD.
Cause: Management oversight.
Context: The population size is 9 tenants. Per our testing, one of the tenant recertifications had not been performed.
Questioned Costs: $0
Recommendation: We recommend that management ensure the required recertifications are performed annually.
Views of Responsible Officials and Corrective Action Plan: Management has hired additional employees to fully staff the leasing department. Management will ensure that all required recertifications are performed going forward.