FAC Explorer

Finding 1236170 (2026-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2026
Accepted
2026-09-23
Audit: 411778
Organization: Davenport Residence, Inc. (CT)
Auditor: SEWARD AND MONDE

AI Summary

  • Core Issue: Rent increase requests for fiscal year 2026 were submitted late, violating HUD regulations.
  • Impacted Requirements: HUD mandates that requests must be made at least 60 days before the increase date.
  • Recommended Follow-Up: Management should implement procedures to ensure timely submission of rent increase requests.

Finding Text

Finding No. 2026-001 Program: Section 8 Housing Assistance Payments Program Federal Assistance Listing No.: 14.195 Federal Grantor: U.S. Department of Housing and Urban Development Condition: Requests for rent increases for fiscal year 2026 were not submitted timely. Criteria: HUD regulations require that a rent increase be requested at least 60 days prior to date of requested increase. Cause: Due to employee turnover and transitions. Effect: Noncompliance with HUD regulations. Context: During testing, it was noted that a rent increase effective for October 1, 2025 was submitted in December 2025. Recommendation: Management should establish procedures to ensure that rent increase requests to HUD be submitted timely. Views of Responsible Officials and Planned Corrective Actions: The proper procedure and regulatory requirements regarding timely rent increase submission have been reviewed Property Management staff for implementation effective immediately.

Corrective Action Plan

Finding No. 2026-001 – Rent Increases Recommendation: Management should establish procedures to ensure that rent increase requests to HUD are submitted timely. Planned Corrective Action: The proper procedure and regulatory requirements regarding timely rent increase submission have been reviewed with current Property Management staff for implementation effective immediately. Anticipated Completion Date - September 2026 Responsible Contact Person – Michael Wolak, President, Board of Directors, E-mail: mawolak1950@gmail.com

Categories

HUD Housing Programs

Other Findings in this Audit

  • 1236171 2026-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects $12.85M
14.195 Section 8 Housing Assistance Payments Program $2.50M
14.191 Multifamily Housing Service Coordinators $136,607