Core Issue: One required housing inspection was missed in 2025, violating HUD's annual inspection mandate.
Impacted Requirements: Compliance with 24 CFR 5.705(c) is at risk, potentially leading to HUD withholding assistance.
Recommended Follow-Up: Grasslands Housing, Inc. should establish procedures to ensure timely inspections and complete documentation in tenant files.
Finding Text
Housing Inspections Federal Program Information: Funding agency: U.S. Department of Housing and Urban Development Title: Mortgage Insurance for the Purchase or Refinancing of Existing Multi Family Housing Projects AL number: 14.155 Criteria or Specific Requirement: In accordance with 24 CFR 5.705(c), inspection of U.S. Department of Housing and Urban Development (HUD) housing must be performed annually. Condition: Internal controls over tenant files doe not appear to be effective. Testing procedures revealed one inspection was not performed in 2025. Questioned Costs: None Effect: The lack of inspections to support compliance with HUD's inspection requirements may increase the risk of HUD withholding assistance if the units do not meet the housing quality standards set by HUD. Cause: Individuals responsible for reviewing tenant files did not ensure tenant inspections were current and in compliance with HUD inspection requirements. Auditor's Recommendation: We recommend Grasslands Housing, Inc. implement procedures or processes to ensure all required documentation is included in the file and that all annual updates to the files are made timely. View of Responsible Officials: Management agrees and has prepared a correction action plan.
Corrective Action Plan
Management agrees with the finding and has prepared a corrective action plan to complete these annually. One tenant did not comply with ACCAP’s request to complete inspection during 2025. This has been corrected through eviction of the tenant.