Finding Text
Finding Reference Number: 2024-003 Type of Finding: Noncompliance and Significant Deficiency in Internal Control over Compliance Major Program: 14.275 - Housing Trust Fund (Grantor - Department of Housing and Urban Development) Compliance Requirement: Eligibility Criteria: The Compliance Supplement and the loan agreements with Delaware State Housing Authority require that all units at House of Joseph Residence be rented to extremely low-income families. Title 24 of the U.S. Code of Federal Regulations (CFR) Part 93 defines extremely low-income families as those whose annual income does not exceed 30 percent of the area median income, as determined by HUD. Condition: During the year ended December 31, 2024, one of the seven units at the House of Joseph Residence was occupied by a tenant whose income exceeded 30 percent of the area median income, and therefore, did not qualify as extremely low-income. Cause: Oversight of compliance requirement by program staff. Effect: The Organization was not in full compliance with program requirements, as one unit was rented to an ineligible tenant. Recommendation: We recommend the Organization strengthen its tenant intake procedures by implementing formal controls to verify and document income eligibility prior to approving residency at the House of Joseph Residence.