Finding 1217940 (2025-002)

Finding No. 2025-002: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: Forty-five tenants. Sample Size Information: Five tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulations require timely collection and retention of all initial and ongoing tenant eligibility documentation. Statement of Condition: Missing documentation in tenant files: • The initial EIV report was not pulled within 90 days of being entered into the TRACS system for four tenants. • Criminal background checks were not done in a timely manner on two tenants. • Form HUD-50059 was not signed or dated by the tenant or owner/agent in one tenant’s file. • The information release form was not signed in one tenant’s file. • Lease addendums were not complete in three tenant files. • No lease was found for one tenant’s file. • The initial housing application was not found in two tenant files. • The waitlist did not document adequate reasoning for skipping over tenants. Cause: The Project did not adequately adhere to HUD regulations for proper tenant eligibility screening and document retention. Effect or Potential Effect: Unable to verify tenant eligibility and cost of assistance may be disallowed. Auditor Non-Compliance Code: R – Section 8 Program Admin. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendation will be adopted. Recommendation: The Project should implement stronger internal controls over the administration of tenant eligibility and file maintenance, inclusive of more rigorous staff training, to ensure HUD regulations are followed timely and accurately. Response Indicator: Agree. Completion Date: 12/31/2026 Response: Staff training has been provided with additional HUD training inclusive of EIV reporting and tenant file maintenance and included in monthly reporting procedures.