Finding 1155090 (2024-002)

Material Weakness Repeat Finding
Requirement
F
Questioned Costs
-
Year
2024
Accepted
2025-09-24

AI Summary

  • Core Issue: The property did not meet maintenance standards, scoring only 42 on the 2024 REAC inspection.
  • Impacted Requirements: Compliance with HUD regulations for property upkeep was not followed, leading to a failing inspection score.
  • Recommended Follow-Up: Management must address all issues from the NSPIRE report promptly to achieve a passing score in future inspections.

Finding Text

Finding No. 2024-2; Section 8, Assistance Listing 14.195 Criteria In accordance with the HAP contract, management is required to maintain the property in good repair. Condition Management failed to maintain the property in good repair and received a score of 42 in its 2024 REAC Physical Inspection. Cause The procedures to ensure compliance with HUD regulations regarding physical condition of the property were not followed. Effect or Potential Effect The project was unable to obtain a passing score on its REAC inspection. Questioned Costs None Recommendation Management should correct all findings noted in the NSPIRE Physical Inspection Report in the time frames requested in the physical inspection. Auditor Noncompliance Code Section 8 program administration I - Failure to maintain property/open physical inspection Finding Resolution Status In process. A second inspection was completed in 2024 and the property received a score of 56. Reporting Views of Responsible Officials This property has suffered post hurricane with reduced population, staffing shortages, and increased costs. The NSPIRE scores reflect the challenges the property faces. Scores have improved but additional work will need to be completed to ensure a passing score. The property is a subsidized cooperative will limited resources. The property and the Agent will continue to improve conditions at the property to ensure a passing score. Staff is being trained and the managing agent is supplementing the on site staff. Additional training is being provided

Corrective Action Plan

B. Current Findings on the Schedule of Findings, Physical Inspection and Recommendations 2. Finding 2024-2 c. Comments on the Finding and Each Recommendation This property has suffered post hurricane with reduced population, staffing shortages, and increased costs. The NSPIRE scores reflect the challenges the property faces. Scores have improved but additional work will need to be completed to ensure a passing score. The property is a subsidized cooperative will limited resources. d. Action(s) Taken or Planned on the Finding The property and the Agent will continue to improve conditions at the property to ensure a passing score. Staff is being trained and the managing agent is supplementing the on site staff. Additional training is being provided.

Categories

HUD Housing Programs Reporting

Other Findings in this Audit

  • 1155089 2024-001
    Material Weakness Repeat
  • 1155091 2024-003
    Material Weakness Repeat
  • 1155092 2024-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.195 Project-Based Rental Assistance (pbra) $835,965