Finding 1226338 (2025-002)

FINDING No. 2025-002: Section 236 Interest Reduction Payments, ALN 14.103 Finding Resolution Status: Unresolved. Information on Universe Population Size: One hundred twenty-six tenants. Sample Size Information: Twenty tenants. Identification of Repeat Finding and Finding Reference Number: Yes, 2023-001 and 2024-002. Criteria: HUD regulations require timely verification and maintenance of documentation of a tenant’s income and other resident information through the Enterprise Income Verification (EIV) system that is performed within 90 days of the tenant being entered into the Tenant Rental Assistance Certification System (TRACS). Statement of Condition: The Project did not verify income and other resident information of one of its Section 236 tenants through the EIV system. Cause: The Project did not adhere to HUD regulations for continuing eligibility and did not verify income and other resident information. Effect or Potential Effect: Untimely verification of tenant eligibility and cost of assistance and residency may be disallowed. Auditor Non-Compliance Code: R – Section 8 Program Administration. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations will be adopted. Recommendation: Management should implement procedures to ensure the Project verifies tenant eligibility through the EIV system. 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.