Finding 1176718 (2025-002)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-03-06
Audit: 390616
Organization: Pensdale Housing, Inc. (CA)

AI Summary

  • Core Issue: The property scored 59 on a recent NSPIRE inspection, indicating it is not being maintained in a decent, safe, and sanitary condition.
  • Impacted Requirements: The property is not compliant with the Regulatory Agreement, risking ineligibility for subsidies and potential default.
  • Recommended Follow-Up: Management must ensure all life-threatening deficiencies are corrected and respond to HUD within three days of receiving inspection reports.

Finding Text

Finding reference number: 2025-002 Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing 14.157 (034-EE100 and 2003) Auditor non-compliance code: I – Failure to maintain property/open physical inspection Finding resolution status: In Process Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Statement of condition 2025-003: The Property received a NSPIRE inspection dated August 1, 2024. The inspection resulted in a score of 59 (out of a possible 100). Scores below 60 are referred to the Departmental Enforcement Center. Criteria: Pursuant to the Regulatory Agreement, the Property is to be maintained in good repair and condition and considered decent, safe, and sanitary. Management is to conduct routine unit and general property inspections and deficiencies should be corrected. Effect: The Corporation is not in compliance with the Regulatory Agreement. If the deficiencies are of a life-threatening nature and not corrected in a timely manner, the units could be considered not to be in a decent, safe, and sanitary condition and may be ineligible to receive subsidy and could result in a default under the Regulatory Agreement. Cause: Management was unable to take the proper steps to maintain the facility in a decent, safe, and sanitary condition. Recommendation: Management must maintain the Property in decent, safe, and sanitary condition and good repair. Management must respond to HUD in three days of receiving the inspection report and confirm all life-threatening deficiencies have been corrected. Completion Date: Cleared Management's response: Management has responded to HUD in regard to this inspection report and on July 8, 2025 another inspection was conducted that resulted in a final score of 95 (out of a possible 100).

Corrective Action Plan

Comments on the Finding and Each Recommendation The Property received a NSPIRE inspection dated August 1, 2024. The inspection resulted in a score of 59 (out of a possible 100). Scores below 60 are referred to the Departmental Enforcement Center. Management must maintain the Property in decent, safe, and sanitary condition and good repair. Management must respond to HUD in three days of receiving the inspection report and confirm all lifethreatening deficiencies have been corrected. Action(s) taken or planned on the finding Management and the Board of Directors concur with the finding and the auditor's recommendations. Management has responded to HUD in regard to this inspection report and on July 8, 2025 another inspection was conducted that resulted in a final score of 95 (out of a possible 100).

Categories

Subrecipient Monitoring Eligibility HUD Housing Programs

Other Findings in this Audit

  • 1176715 2025-001
    Material Weakness Repeat
  • 1176716 2025-001
    Material Weakness Repeat
  • 1176717 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY $523,247