Finding Text
FINDING No. 2025-002: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, ALN 14.155 Finding Resolution Status: Unresolved. Information on Universe Population Size: HAP revenue. Sample Size Information: Monthly HAP requests. Identification of Repeat Finding and Finding Reference Number: Yes, 2024-002. Criteria: As required by HUD regulations, a HUD approved rent change must be executed as of its effective date. Statement of Condition: The Project did not implement the HUD approved rent change to its monthly HAP requests in a timely manner upon approval of the rent schedule. Cause: The Project did not follow HUD regulations for timely applying the gross rent change, resulting in an underpayment of HAP for each unit. Effect or Potential Effect: The Project did not request $7,220 of HAP funding in the audit period. Auditor Non-Compliance Code: R – Section 8 Program Administration. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations will be adopted. Recommendation: The Project should comply with HUD regulations for executing the rent change timely upon approval of the rent schedule. Response Indicator: Agree. Completion Date: 03/31/2026 Response: Management involved with implementing the rent increase has been notified and will ensure timely implementation moving forward.