Finding Text
FINDINGS - MAJOR FEDERAL AWARD PROGRAMS AUDIT Department of Housing and Urban Development Finding 2025-001: Major Program: Supportive Housing for the Elderly (Section 202 Capital Advance - Accumulated Balance), Federal Assistance Listing Number 14.157 STATEMENT OF CONDITION One tenant file, out of six files reviewed, was for a tenant who moved in during the year and management did not properly generate the EIV Existing Tenant Search report timely. CRITERIA HUD Handbook 4350.3 Revision 1 for HUD Subsidized Multifamily Housing Programs requires owners to generate the HUD EIV Existing Tenant Search for every applicant household member. EFFECT OF CONDITION The EIV Existing Tenant Search report was not maintained in the tenant file. CONTEXT During audit fieldwork, six tenant files from a statistically valid sample were examined for compliance with tenant eligibility criteria and HUD lease requirements. Of the six files examined, one tenant was a new move in. The tenant’s file did not contain the EIV Existing Tenant Search report required by HUD. CAUSE OF CONDITION The procedures to ensure EIV Existing Tenant Search reports were properly filed in the tenant file were not followed. RECOMMENDATION The auditor recommends ensuring all current and new staff are trained on HUD Handbook requirements for tenant files, including the EIV Existing Tenant Search reports. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTIONS The Project will be continuing to train staff on the HUD Handbook requirements for tenant files.