Finding Text
Finding Reference Number: 2025-004 Type of Finding: Noncompliance and Significant Deficiency in Internal Control over Compliance Major Program: 14.275 - Housing Trust Fund (Grantor - Department of Housing and Urban Development) Compliance Requirement: Eligibility Criteria: The Compliance Supplement and the loan agreements with Delaware State Housing Authority require that all units at House of Joseph Residence be rented to extremely low-income families. Title 24 of the U.S. Code of Federal Regulations (CFR) Part 93 defines extremely low-income families as those whose annual income does not exceed 30 percent of the area median income, as determined by HUD. Condition: During the year ended December 31, 2025, one of the nine tenants who resided at the House of Joseph Residence had income which exceeded 30 percent of the area median income, and therefore, did not qualify as extremely low-income. Cause: Oversight of compliance requirement by program staff. Effect: The Organization was not in full compliance with program requirements, as one unit was rented to an ineligible tenant. Recommendation: We recommend the Organization strengthen its tenant intake procedures by implementing formal controls to verify and document income eligibility prior to approving residency at the House of Joseph Residence.