Finding Text
Finding No. 2025-006 Uniform Guidance Compliance Requirement Code: E-Eligibility - Significant Deficiency HUD Low Income Housing Preservation and Resident Homeownership Act of 1990 Federal Assistance Listing Number #99.999 Low Income Housing Preservation and ResidentHomeownership Act of 1990 - Capital Grant Entity IdentifyingNumber Initial Year Findinginstances Beacon 126-35062 1996 2 Total instances 2 Criteria Tenant lease files are required to be maintained and tenant eligibility determined in accordance with the HUD issued Use Agreement subject to the Low Income Homeownership Act of 1990 ("HUD Use Agreement"). Condition In connection with our lease file review, we noted two instances out of the three tested where management did not provide support that they performed a 3rd party income verification in accordance with policy. Cause Management's policies with respect to recertifications, eligibility and the maintenance of tenant lease files in accordance with the HUD Use Agreement were not consistently followed. Effect or Potential Effect This could result in units being rented to ineligible tenants. Questioned Costs: Not applicable. Context In connection with the procedures applied to the LIHPRA units testing, two of the three tenants tested did not have a 3rd party income verification performed in accordance with policy. Repeat Finding: No Recommendation Management should establish procedures and monitor compliance with those procedures to ensure that recertifications and correct income verification procedures are performed timely, tenant eligibility is correctly determined and that tenant lease files are properly maintained in accordance with the requirements of the HUD issued Use Agreement subject to the Low Income Homeownership Act of 1990. Views of Responsible Officials REACH has policies in place to ensure recertifications and income verification are performed timely, tenant eligibility is correctly determined, and the tenant files are properly maintained. During the second quarter of 2026, REACH outsourced property management and compliance functions to a third-party management company to address the outstanding compliance issues.