Finding 1161116 (2025-003)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2025-10-21

AI Summary

  • Issue: High Street Homes, Inc. failed to obtain a signed lease agreement for a tenant, leading to incomplete documentation.
  • Requirements Impacted: All HUD forms must be signed by both the Project and the tenant before occupancy.
  • Recommended Follow-Up: Review all tenant files for completeness, implement a checklist for required documents, and provide staff training on HUD compliance.

Finding Text

Statement of Condition: As a result of our audit procedures, we noted one instance whereby High Street Homes, Inc. did not obtain a signed lease agreement for the tenant. Criteria: All required HUD forms must be properly signed by the Project and the tenant, as applicable. Cause: Management did not obtain a lease signed by the tenant and Project management prior to tenant moving in. Effect: The Project had incomplete documentation on file for the tenant. Recommendation: The Project should perform a review of all tenant files to ensure all tenant files are complete with required documentation. Views of Responsible Officials and Planned Corrective Actions: High Street Homes, Inc. acknowledges the deficiency related to tenant eligibility documentation . Management recognizes the importance of maintaining complete tenant files to ensure compliance with HUD requirements. Corrective actions taken include: mmediate review of all current tenant files to confirm lease agreements and all required HUD forms are properly executed and on file.  Establishment of a tenant file checklist to ensure all required documentation is obtained and reviewed prior to tenant move-in.  Implementation of supervisory review of tenant files to verify completeness before occupancy is finalized.  Staff training on HUD eligibility and documentation requirements to reinforce compliance. High Street Homes, Inc. is committed to ensuring full compliance with HUD tenant eligibility documentation requirements.

Corrective Action Plan

Recommendation: The Project should perform a review of all tenant files to ensure all tenant files are complete with required documentation. Planned Corrective Actions: High Street Homes, Inc. acknowledges the deficiency related to tenant eligibility documentation. Management recognizes the importance of maintaining complete tenant files to ensure compliance with HUD requirements. Corrective actions taken include: • Immediate review of all current tenant files to confirm lease agreements and all required HUD forms are properly executed and on file. • Establishment of a tenant file checklist to ensure all required documentation is obtained and reviewed prior to tenant move-in. • Implementation of supervisory review of tenant files to verify completeness before occupancy is finalized. • Staff training on HUD eligibility and documentation requirements to reinforce compliance. High Street Homes, Inc. is committed to ensuring full compliance with HUD tenant eligibility documentation requirements.

Categories

Eligibility HUD Housing Programs

Other Findings in this Audit

  • 1161113 2025-002
    Material Weakness Repeat
  • 1161114 2025-003
    Material Weakness Repeat
  • 1161115 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.181 SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES $42,319