Finding Text
FINDINGS - MAJOR FEDERAL AWARD PROGRAM AUDIT (CONTINUED) Department of Housing and Urban Development Finding, 2025-002: Major Programs: Flexible Subsidy Assistance Loan and Section 8 Project-Based Cluster - Section 8 Housing Assistance Payments Program, Federal Assistance Listing Number 14.195 STATEMENT OF CONDITION One tenant file, out of thirteen files reviewed, was missing the tenant application. CRITERIA HUD Handbook 4350.3 Revision 1 for HUD Subsidized Multifamily Housing Programs requires owners to maintain the original application in the tenant files. EFFECT OF CONDITION The tenant application was not properly maintained in the tenant’s file. CONTEXT During audit fieldwork, thirteen tenant files from a statistically valid sample were examined for compliance with tenant eligibility criteria. Of the thirteen tenant files examined, the file for one tenant did not contain the application. CAUSE OF CONDITION Management archives the original documentation for long-term tenants and was not able to locate the folder at the time of inspection. RECOMMENDATION The auditor recommends the Project organize the archived tenant information and include original information in the active tenant files. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTIONS The Project will be organizing the archived tenant information and including the original information in the active tenant files. The Project will continue to train staff on the HUD Handbook requirements for the tenant files.