Finding 1155091 (2024-003)

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

AI Summary

  • Core Issue: Tenant lease files are not being maintained properly, leading to eligibility determination issues.
  • Impacted Requirements: Compliance with HUD Handbook 4350.3 is inconsistent, risking ineligible tenants and incorrect rent subsidies.
  • Recommended Follow-Up: Management should implement and monitor new procedures to ensure timely eligibility checks and proper lease file maintenance.

Finding Text

Finding No. 2024-3; Section 8, Assistance Listing 14.195 Criteria Tenant lease files are required to be maintained and tenant eligibility determined in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Condition In connection with our lease file review, we noted the following deficiencies: One of out of one new tenant tested did not have EIV run timely for recertification. Cause Management's policies with respect to the determination of tenant eligibility and the maintenance of tenant lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs were not consistently followed. Effect or Potential Effect The procedures for determining tenant eligibility and maintaining tenant lease files were not consistently applied in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. This could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Questioned Costs None Recommendation Management should establish procedures and monitor compliance with those procedures to ensure that 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 R - Section 8 program administration Finding Resolution Status In process Reporting Views of Responsible Officials We concur that EIV reports were not timely filed. Staff has been stabilized and will ensure that reports are run timely. Training and monitoring will be provided.

Corrective Action Plan

C. Current Findings on the Schedule of Findings, Section 8 program administration and Recommendations 3. Finding 2024-3 e. Comments on the Finding and Each Recommendation We concur that EIV reports were not timely filed. Action(s) Taken or Planned on the Finding f. Action(s) Taken or Planned on the Finding Staff has been stabilized and will ensure that reports are run timely. Training and monitoring will be provided.

Categories

HUD Housing Programs Eligibility Reporting Subrecipient Monitoring

Other Findings in this Audit

  • 1155089 2024-001
    Material Weakness Repeat
  • 1155090 2024-002
    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