Finding 2007 (2023-001)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2023-11-16
Audit: 3459
Organization: Casa Otonal Housing Corporation (CT)
Auditor: Cohnreznick LLP

AI Summary

  • Core Issue: Tenant lease files were not maintained correctly, leading to errors in calculating tenant and subsidy rent portions.
  • Impacted Requirements: Compliance with HUD Handbook 4350.3 was inconsistent, risking ineligible tenants and incorrect rent subsidies.
  • Recommended Follow-up: Management should implement and monitor procedures to ensure accurate tenant eligibility determinations and proper lease file maintenance.

Finding Text

Finding No. 2023-001 Federal Assistance Listing #14.134 Mortgage Insurance - Rental Housing Federal Assistance Listing #14.195 Section 8 Housing Assistance Payments Criteria Tenant lease files are required to be maintained and tenant eligibility determined in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Condition During the procedures applied to a sample of 2 new tenant lease files, we noted 1 instance where the tenant tested did not have the tenant and subsidy rent portions calculated correctly. Cause Management's policies with respect to the determination of tenant security deposits and eligibility and the maintenance of tenant lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs were not consistently followed. Effect or Potential Effect The procedures for determining tenant security deposits and eligibility and maintaining tenant lease files were not consistently applied in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. This could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Questioned Costs $216 - $27 discrepancy for 8 months of the fiscal year Recommendation Management should establish procedures and monitor compliance with those procedures to insure that tenant eligibility is correctly determined and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Auditor Noncompliance Code: R - Section 8 program administration Finding Resolution Status: Resolved Views of Responsible Officials Management agrees with the finding. Documentation was submitted showing that the 50059 was corrected to include accurate information. Management will monitor compliance with its established procedures to ensure tenant eligibility is correctly determined and that the tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs.

Categories

HUD Housing Programs Eligibility

Other Findings in this Audit

  • 2006 2023-001
    Significant Deficiency
  • 578448 2023-001
    Significant Deficiency
  • 578449 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.134 Mortgage Insurance_rental Housing $5.78M
14.195 Section 8 Housing Assistance Payments Program $1.64M
14.191 Multifamily Housing Service Coordinators $39,449