Finding Text
Federal Program: Section 207/223(f) - Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects
Assistance Listing Number: 14.155
Federal Agency: U.S. Department of Housing and Urban Development
Pass-Through Agency: N/A
Award Number: 033-11073
Award Year: 2024
Compliance Requirement: Eligibility
Questioned Costs: Not Determinable
Criteria: The Corporation is required to have all new residents sign a Form HUD-9887 and a Resident Rights and Responsibilities document upon move-in.
Condition and Context: The Corporation did not have these documents signed and maintained in the resident file for one out of four residents selected for testwork.
Cause: The Corporation lacks an adequate review process for the resident files to ensure all required documents are obtained and stored in the resident file. While the majority of required information was present, missing documents were not detected in a timely manner.
Effect or Potential Effect: As a result of the review process, noncompliance due to error or fraud could occur without being detected and corrected, timely.
Recommendation: Management should implement a structured review process for the resident files to ensure they are complete and missing information is detected timely.
Management's Response: The Corporation will implement a standard review process over the resident files to prevent and detect errors on a timely basis.