FAC Explorer

Finding 1164423 (2024-007)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-12-10
Audit: 373851
Organization: Reach Community Development, Inc. (OR)
Auditor: COHNREZNICK LLP

AI Summary

  • Core Issue: The owner failed to provide proof of passing Housing Quality Standards (HQS) inspections for 2024.
  • Impacted Requirements: Compliance with HUD's Housing Quality Standards as outlined in the Use Agreements.
  • Recommended Follow-Up: Management should implement procedures to ensure timely inspections and proper documentation of compliance with HUD standards.

Finding Text

Finding No. 2024-007 Uniform Guidance Compliance Requirement Code: N-Special Tests and Provisions - Significant Deficiency HUD Low Income Housing Preservation and Resident Homeownership Act of 1990 Federal Assistance Listing Number #99.999 Low Income Housing Preservation and Resident Homeownership Act of 1990 - Capital Grant Entity Identifying Number Initial Year Finding instances Beacon 126-35062 1996 2 Taylor 126-55017 1996 1 Total instances 3 Criteria In accordance with the Use Agreements, Housing Quality Standards require that the Owner shall maintain the property in good repair and condition. Condition The owner was unable to provide support that they ensured passing HQS inspections were performed during 2024. Cause Management did not have in place proper procedures and controls to ensure that HQS inspections were performed and properly documented during the year ended December 31, 2024. Effect or Potential Effect Housing units may be out of compliance with HUD Quality Standards. Questioned Costs: Not applicable Context In connection with the procedures applied to tenant file testing there were 3 instances of the 3 files tested where the support of passing HQS inspections were not performed/provided during the year ended December 31, 2024. Repeat Finding: Yes – Finding 2023-004 Recommendation Management should establish procedures to ensure that all units are inspected timely, that they meet the HUD Housing Quality Standards and that the responses to any findings are cleared timely and that the full process is documented in tenant files. Views of Responsible Officials ________________OPEN FOR REACH REPLY

Corrective Action Plan

Finding No. 2024-007 HUD Low Income Housing Preservation and Resident Homeownership Act of 1990 Federal Assistance Listing Number #99.999 Statement of Condition The owner was unable to provide support that they ensured passing HQS inspections were performed during 2024. Corrective Action Plan REACH has policies in place for annual HQS inspections. During the audit, we were informed that the inspection form did not include inspection, work orders, and re-inspection. As a result of the 2024 audit, Management implemented using a new form in 2025 to capture inspection, work orders, and re-inspection.

Categories

Special Tests & Provisions HUD Housing Programs Significant Deficiency

Other Findings in this Audit

  • 1164417 2024-001
    Material Weakness Repeat
  • 1164418 2024-002
    Material Weakness Repeat
  • 1164419 2024-003
    Material Weakness Repeat
  • 1164420 2024-004
    Material Weakness Repeat
  • 1164421 2024-005
    Material Weakness Repeat
  • 1164422 2024-006
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $1.76M
14.275 HOUSING TRUST FUND $1.63M
99.999 LOW INCOME HOUSING PRESERVATION AND RESIDENT HOMEOWNERSHIP ACT OF 1990-CAPITAL GRANT $964,955
14.195 SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM $597,560
14.155 MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS $510,266
21.000 SECTION 607(e ) OF THE NEIGHBORHOOD REINVESTMENT CORPORATION ACT, AS AMENDED $418,750
14.241 HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS $380,000
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $221,798