Finding 20430 (2022-001)

FINDING No. 2022-001: Section 236 Mortgage Restructuring Note, CFDA 14.103 Finding Resolution Status: Unresolved. Information on Universe Population Size: One hundred thirty tenants. Sample Size Information: Twenty tenants. Identification of Repeat Finding and Finding Reference Number: Yes, 2021-001. Criteria: HUD regulations require timely verification of tenant?s initial income through the Enterprise Income Verification (EIV) performed within 90 days of the tenant being entered into Tenant Rental Assistance Certification System (TRACS) with the corresponding documentation maintained. Statement of Condition: The Project did not perform and/or maintain the EIV reports for three tenants. Cause: The Project did not adhere to HUD regulations for initial and continuing eligibility and did not perform timely income verification. Effect or Potential Effect: Unable to verify tenant eligibility and cost of assistance and residency may be disallowed. Auditor Non-Compliance Code: R ? Section 8 Program Administration Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations will be adopted. Recommendation: The Project should implement procedures to ensure the Project verifies tenant eligibility through the EIV system in a timely manner. Also, the Project should contact its local HUD office EIV coordinator for guidance on generating reports for tenant occupying the Project?s section 236 units. Response Indicator: Agree. Completion Date: 12/31/2023 Response: Managers have been trained that EIV income reports must be pulled timely and reviewed and action taken if needed. Alerts have been turned on in One Site to remind managers to pull EIV 90 day reports.