Finding Text
Finding No. 2025-002 - N. Special Tests and Provisions for Uniform Guidance - Significant Deficiency Name of Federal Agency: Department of Housing and Urban Development Federal Program Name: Supportive Housing for the Elderly (Section 202) Assistance Listing Number: 14.157 Federal Award Identification Number and Year: 126EH124, program year is 2024. 126EH124-WAH-CA, program year is 1993. Name of Pass-through Entity (if applicable): Not applicable Criteria: Management is required to maintain compliance with HUD guidelines including the Property’s physical condition, the quality of management and tenant services and annual financial reporting requirements. This includes managements obligation to address all deficiencies identified in the NSPIRE Physical Inspection within a defined period of time. Condition: The Company failed to respond to and address all deficiencies noted in the NSPIRE Physical Inspection within the time frame specified by HUD and could not provide evidence that the deficiencies had been resolved. Cause: The procedures to ensure compliance with HUD guidelines regarding physical condition were not followed. Effect or Potential Effect: The Property may not be in compliance with HUD guidelines relating to the Property’s physical condition. Questioned Costs: N/A Context: Findings from NSPIRE Physical Inspection were not responded to in a timely manner and management could not provide evidence that all deficiencies had been resolved. Auditor Noncompliance Code: Z-Other for REAC Code Identification as a Repeat Finding: No Recommendation: Management should address all deficiencies identified in the NSPIRE Physical Inspection in a timely manner to ensure compliance with HUD regulations. Views of Responsible Officials and Planned Corrective Actions: REACH has policies in place to address deficiencies identified in the NSPIRE Physical Inspections but due to staffing shortages was having issues addressing them in a timely manner. REACH has cleared all deficiencies and submitted all requested materials to HUD and is awaiting the close-out confirmation letter.