Finding 1220311 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-06-29

AI Summary

  • Core Issue: The project failed to submit the rent adjustment request to HUD 120 days before the contract anniversary date.
  • Impacted Requirements: This noncompliance violates HUD guidelines outlined in Housing Notice 2022-05.
  • Recommended Follow-up: Management should ensure timely submission of rent adjustment requests moving forward to avoid future compliance issues.

Finding Text

2025-001: Untimely Request for Rent Adjustment Federal Agency: U.S. Department of Housing and Urban Development Program Name: Supportive Housing for Persons with Disabilities (Section 811) ALN No.: 14.181 Compliance Requirements: Special Tests and Provisions Criteria: Pursuant to Housing Notice 2022-05, rent adjustment request should be submitted to HUD 120-days in advance of the contract anniversary date and must include supporting documents for adjustments to rents at contract renewal. Condition: The Project did not submit to HUD its rent adjustment request 120 days in advance of the contract anniversary date. Context This is a condition identified per review of the Project’s compliance with the specified compliance requirements. Effect: Noncompliance with HUD guidelines. Cause: Staffing issue precluded the timely submission of the rent adjustment request. Questioned Costs: Undetermined Recommendation: Management should adhere to HUD’s guidelines and submit rent adjustment requests to HUD 120 days in advance of the contract anniversary date. Views of Responsible Officials: As a result of staffing issues, we have not been timely with submitting

Corrective Action Plan

Name of Contact Person: Dasil Thomas-Williams, Director of Financial Affairs Corrective Action: Currently, we are reviewing scheduling priorities to be able to submit the budget within the mandated time. Proposed Completion Date: April 9, 2026

Categories

HUD Housing Programs Special Tests & Provisions

Other Findings in this Audit

  • 1220312 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.181 SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES $1.58M
14.U01 PROJECT RENTAL ASSISTANCE CONTRACT (PRAC) $226,658