Finding 1163216 (2025-001)

FINDING No. 2025-001: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: PRAC contracts and assistance. Sample Size Information: Monthly PRAC assistance. Identification of Repeat Finding and Finding Reference Number: No. Criteria: As required by HUD regulations, the PRAC contract renewal must be submitted at least 120 days prior to the existing contract expiration date. Additionally, PRAC loans approved from the replacement reserve account must be returned timely, as stipulated in form HUD-9250. Statement of Condition: The Project did not complete the PRAC renewal process timely. As a result, the Project needed to secure funding through a replacement reserve loan that was not repaid upon receipt of the PRAC funds. Cause: The Project did not follow HUD regulations for a timely PRAC contract renewal resulting in the delay of funding. Effect or Potential Effect: The Project is not in compliance with HUD regulations for a timely PRAC contract renewal and repayment provision stipulated in form HUD-9250. 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: Ensure the PRAC contract renewal is submitted timely and that all loans taken from the replacement reserve account are repaid upon receipt of PRAC funds, as required by HUD. Response Indicator: Agree. Completion Date: 03/31/2026 Response: New staff has been put in place to monitor and submit all renewals in a timely manner.