Finding 1229982 (2026-002)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2026
Accepted
2026-09-16

AI Summary

  • Core Issue: Management reported incorrect income for 2 out of 10 residents, violating annual reexamination requirements.
  • Impacted Requirements: Owners/agents must review family income and composition at least once a year and adjust rent and assistance payments accordingly (24 CFR section 891.410).
  • Recommended Follow-Up: Ensure accurate income reporting and compliance with annual reexamination to prevent future discrepancies.

Finding Text

Owner/Agent must reexamine family income and composition at least once every 12 months and adjust the total rent payment and housing assistance payment, as necessary (24 CFR section 891.410). The owner is responsible for annually reexamining incomes of households occupying assisted units and making appropriate adjustments to the tenant payment and the project rental assistance payment (24 CFR section 891.410). Management reported incorrect income on the 50059 for 2/10 residents in the sample tested.

Corrective Action Plan

As with other high-performing SPM-managed properties, Baptist Retirement Village had been approved for a reduced-sampling protocol under which Multifamily Compliance Services (MFCS) reviews 25% of annual recertifications monthly, selected on a rotating basis, while continuing to review 100% of all move-in and interim certification files. Properties are approved for this 25% protocol only when: (1) the resident file audit section of the property’s HUD Management and Occupancy Review scores decline, or on-site management turns over, the property returns to 100% file review for all certifications. Because the errors addressed in this finding were identified during the reduced-sample review, Baptist Retirement Village is returning to 100% file review for all certifications. In addition, SPM is correcting the three affected tenant files, including any retroactive adjustment to Total Tenant Payment and subsidy, and property personnel responsible for completing 50059s are receiving refresher training on income determination requirements under HUD Handbook 4350.3 REV-1.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 1229981 2026-001
    Material Weakness Repeat
  • 1229983 2026-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY $2.54M