Finding 1208408 (2024-004)

Criteria: The Organization is required to use Form 50059-A to process a move out in the event of a deceased tenant, retroactive to the earlier of 14 days after the tenant’s death or the date the unit was vacated. Any overpayment of subsidy that was paid on behalf of the deceased tenant must be repaid to HUD. Statement of Condition: The Organization did not use the appropriate date when processing Form 50059-A for a deceased tenant. The resulting overpayment of subsidy was not repaid to HUD. Cause of condition: The Organization used date of unit vacancy as effective move-out date. The unit was not vacant for several months due to tenant’s son moving into the unit and refusing to vacate. Effect of condition: Six months of subsidy were received on behalf of the deceased tenant. Recommendation: The design of the current controls should be reviewed to ensure proper vacancy dates are utilized in the event of a deceased tenant. The overpayment of subsidy received on behalf of the deceased tenant should be repaid to HUD. Views of Responsible Officials: Management agrees with the finding and will implement procedures to ensure that move-outs as a result of a deceased tenant are processed in accordance with HUD guidelines. The overpayment of subsidy will be repaid to HUD through adjustments to monthly billing.