Finding 1150445 (2024-003)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-08-20
Audit: 364591
Organization: Community Housing, Inc. (OR)
Auditor: Cohnreznick LLP

AI Summary

  • Core Issue: HQS inspections were not conducted in 2024, violating HUD requirements for maintaining subsidized housing standards.
  • Impacted Requirements: Inspections must occur every year for larger projects and every two to three years for smaller ones, as per federal guidelines.
  • Recommended Follow-Up: Management should implement and monitor procedures to ensure timely inspections and compliance with HUD standards, addressing staffing shortages effectively.

Finding Text

Finding No. 2024-003; Federal Assistance Listing Number 14.239 Criteria During the period of affordability (i.e., the period for which the nonfederal entity must maintain subsidized housing) for HOME assisted rental housing, the participating jurisdiction must perform on-site inspections to determine compliance with property standards and verify the information submitted by the owners no less than (a) every three years for projects containing one to four units, (b) every two years for projects containing five to 25 units, and (c) every year for projects containing 26 or more units. The participating jurisdiction must perform on-site inspections of rental housing occupied by tenants receiving HOME/HOME-ARP-assisted tenantbased rental assistance to determine compliance with housing quality standards (24 CFR sections 92.209(i), 92.251(f), and 92.504(d)). Condition The owner did not ensure passing HQS inspections were performed in 2024. Cause Management did not have in place proper procedures and controls to ensure that HQS inspections were performed during the year ended December 31, 2024. Effect or Potential Effect Housing units may be out of compliance with HUD Quality Standards. Questioned Costs N/A Context In connection with the procedures applied to tenant file testing there were 3 instances of the 3 files tested where the passing HQS inspections were not performed during the year ended Identification as a Repeat Finding Yes: 2023-004 Recommendation Management should establish procedures and monitor compliance with those procedures to insure that recertifications are performed timely and signed, tenant eligibility is correctly determined and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Auditor Noncompliance Code: N-Special tests and provisions for Uniform Guidance Finding Resolution Status: Unresolved Views of Responsible Officials and Planned Corrective Actions: REACH has policies in place to ensure that HQS inspections are done in a timely manner. Staffing shortages at the Property had an impact on the completion of HQS inspections in 2024. As new staff are brought onboard training is provided and management will continue to coordinate and provide assistance to on-site staff to ensure that the inspections are being completed and properties are in compliance.

Categories

HUD Housing Programs Special Tests & Provisions Eligibility Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 573995 2024-001
    Significant Deficiency Repeat
  • 573996 2024-002
    Significant Deficiency Repeat
  • 573997 2024-004
    Significant Deficiency
  • 573998 2024-005
    Significant Deficiency Repeat
  • 573999 2024-001
    Significant Deficiency Repeat
  • 574000 2024-002
    Significant Deficiency Repeat
  • 574001 2024-004
    Significant Deficiency
  • 574002 2024-005
    Significant Deficiency Repeat
  • 574003 2024-003
    Significant Deficiency Repeat
  • 1150437 2024-001
    Significant Deficiency Repeat
  • 1150438 2024-002
    Significant Deficiency Repeat
  • 1150439 2024-004
    Significant Deficiency
  • 1150440 2024-005
    Significant Deficiency Repeat
  • 1150441 2024-001
    Significant Deficiency Repeat
  • 1150442 2024-002
    Significant Deficiency Repeat
  • 1150443 2024-004
    Significant Deficiency
  • 1150444 2024-005
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.239 Home Investment Partnerships Program $750,000
14.157 Supportive Housing for the Elderly $105,207