Finding Text
Condition: The Organization did not comply with the HUD requirement to timely recertify tenant income
eligibility on an annual basis for three continuing tenants.
Criteria: HOME-assisted units in a rental housing project must be occupied only by households that are
eligible as low-income families and must meet certain limits on the rents that can be charged. The
Organization must determine annually if each family is income eligible by determining the family’s
annual income, including all persons in the household, as provided for in 24 CFR section 92.203.
Cause: Failure to follow internal control procedures during recertification of these tenants.
Effect: Failure to follow these requirements may result in the imposition of sanctions.
Questioned costs: $-0-
Context: We examined seven continuing tenant files out of a population of 66 residents in the
Cornerstone and Legacy projects in fiscal year 2024 for this compliance attribute and this condition was
noted in three of the selected continuing tenants.
Repeat Finding: No
Recommendation: The Cornerstone and Legacy projects were disposed of by sale and contribution,
respectively, and all HOME-related loans and related compliance requirements were assumed by
Foundation Communities (an unrelated nonprofit organization) or one of its affiliates during May 2024.
Therefore, we have no recommendation for this finding.
Reporting Views of Responsible Officials: Management agrees with the finding. No action is needed.