Finding Text
Finding No.: 2025-009 Identification of the federal program: Federal Agency: U.S. Department of Housing and Urban Development (HUD) AL Program: 14.239 HOME Investment Partnerships (HOME) Program Federal Award No.: M17ST660202, M18ST660202 Area: Special Tests and Provisions – Underwriting Criteria or specific requirement (including statutory, regulatory or other citation): 24 CFR 92.254(g) states: Homebuyer program policies. The participating jurisdiction must have and follow written policies for: (1) Underwriting standards for homeownership assistance to determine the amount of assistance necessary to achieve sustainable homeownership. These standards must evaluate the projected overall debt of the family after the purchase of the housing, the maximum amount that a participating jurisdiction may provide a family, the appropriateness of the amount of assistance, assets available to a family to acquire the housing, and financial resources to sustain homeownership. A participating jurisdiction may not provide a single, fixed amount of assistance to each homebuyer that participates in the participating jurisdiction's homebuyer program; (2) Responsible lending, and (3) Refinancing loans to which HOME loans are subordinated to require that the terms of the new loan are reasonable. Condition: The HOME Program did not have an approved policy effective in FY2025. Cause: The condition was primarily due to delays in the formal review, update, and approval of the HOME Program policies to align with applicable federal requirements under 24 CFR 92.254(g). Finding No.: 2025-009, continued Effect or potential effect: GHURA is in noncompliance with applicable special test and provisions requirements. Questioned Costs: $0. No questioned cost is presented as this non-compliance pertains to a lack of policy. Identification as a repeat finding: Not applicable. Recommendation: GHURA should implement a written policy in compliance with the requirements of 24 CFR 92.254(g). Views of Responsible Officials: Management disagrees with the finding. Refer to Management’s position as outlined in the Corrective Action Plan. Conclusion: Management submitted additional information on June 28, 2026; however, due to time constraints, we were unable to sufficiently corroborate and evaluate the documentation provided. Accordingly, the finding remains, as there was insufficient evidence to support a determination of compliance as of the audit date.