Finding Text
Low Rent Program-ALN#14.850 Finding 2022-002-Low Rent Tenant File Deficiencies-Eligibility Criteria and Specific Requirement HUD regulations dictate the necessary steps for intake, processing, maintaining the waiting list, processing of move-ins, interims, re-examinations, and various other aspects of the required paperwork and procedures. Condition Found We reviewed 25 files, 7 of which were audit year move-ins, and 18 were annual re-examinations. We noted the following exceptions: (a)-We were unable to find any annual inspections for the 18 re-examinations. We did note them for 6 of the 7 move-ins. (b)-We were unable to find the required annual review of the utility allowances. The January 27, 2020 Minutes discuss utility allowances and approve new ones. However, the minutes do not reflect for which period the new allowances covered. In addition, there was no documented analysis of whether utility rates had increased beyond the level which required revision, and whether the allowances changed or instead were a holdover from the old rates. (c)-We were unable to view the waiting list, and thus could not review whether the 7 move-ins reached the top of the list. (d)-5 required Enterprise Income Verifications (EIV) were not present in the proper time frame for the 25 files reviewed. (e)-Of the 25 tenant files we reviewed, non were timely re-examined within the required one year period. (f)-We were unable to review documentation of the review of flat rents. Cause It appears that the supervision was inadequate. There is no documentation of a supervisor’s review. Effect Assurance is not at the minimum required level that applicants were admitted in the proper order, that tenant rents were correctly calculated, and the other steps were properly executed. Recommendation to prevent future occurrences Staff should receive adequate training and be adequately supervised. Likely the situation has been corrected, given the current management, as noted below. View of Responsible Officials As noted previously, we were not the management during this audit period. Our initial Cooperative Agreement was executed November 14, 2023. We believe we have corrected the noted deficiencies.