Finding 1164475 (2024-002)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2025-12-11

AI Summary

  • Core Issue: Key documents in the tenant file were missing or unsigned, including the HUD-50059 form, inspection form, and lease agreement.
  • Impacted Requirements: Compliance with HUD’s tenant eligibility and rent procedures is compromised due to these missing signatures and forms.
  • Recommended Follow-up: Ensure all tenant files are complete and properly signed to meet HUD requirements and avoid compliance issues.

Finding Text

Program U.S. Department of Housing and Urban Development (HUD) – Supportive Housing for Persons with Disabilities (Section 811) and Project Rental Assistance, Assistance Listing No. 14.181. Condition One tenant file was selected for testing and the following items were noted:  Form HUD-50059, Owner’s Certification of Compliance with HUD’s Tenant Eligibility and Rent Procedures was not signed  Move-in/move-out inspection form was not provided  Lease was not signed

Corrective Action Plan

2024-002: Section 811, Assistance Listing No. 14.181 One tenant file was selected for testing and the following items were noted: • Form HUD-50059, Owner’s Certification of Compliance with HUD’s Tenant Eligibility and Rent Procedures was not signed • Move-in/move-out inspection form was not provided • Lease was not signed Additionally, our testing indicated that the required deposits to the replacement reserve account had not been made for the last quarter of the Corporation’s fiscal year for any tenants. Recommendation: We recommend the Corporation establish procedures and internal controls to ensure that all required documentation is maintained, and all required reserve deposits are made timely, in accordance with HUD requirements. Action Taken: Management concurs with this recommendation. Since assuming property management on June 1, 2025, ULREDC has conducted a tenant file audit. All property management staff have been properly trained to ensure compliance with certification, documentation, and inspection requirements. Missing documentation, including Form HUD-50059, income verifications, and leasing inspections, is being corrected. Replacement reserve deposits were delayed because properties were not cash flowing. As leasing stabilizes, deposits will resume and be verified once RealPage is fully active. RealPage will serve as the compliance and record-retention platform. Quarterly internal compliance reviews will be instituted to confirm file accuracy and documentation completeness.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 1164474 2024-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.181 SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES $35,130