Finding 3674 (2023-001)

Finding 2023-001 Program U.S. Department of Housing and Urban Development (HUD) – Supportive Housing for the Elderly (Section 202) and Project Rental Assistance, Assistance Listing No. 14.157. Condition We determined a sample selection size of two selections for tenant testing. The Corporation did not complete Form HUD-50059, Owner’s Certification of Compliance with HUD’s Tenant Eligibility and Rent Procedures, before the tenant’s anniversary date, as required by HUD, for one of the two tenants selected for testing. Criteria Tenant recertifications should be completed and maintained as required by HUD requirements. Cause There were no procedures in place to ensure that all annual recertifications were properly completed and maintained. Effect Failure to comply with the annual recertification process is an instance of noncompliance with the Regulatory Agreement. Recommendation We recommend the Corporation establish procedures to ensure that the annual recertifications are completed on a timely basis in accordance with HUD requirements. Reporting Views of Responsible Officials Management agrees with the recommendation and the Corporation’s Board of Directors has made the decision to change property managing agents effective January 1, 2024. It is anticipated that the change to a new property managing agent will allow the Corporation to establish procedures to ensure all recertifications are performed and maintained in accordance with the regulatory agreement.