Finding Text
Finding 2023-001
Program
U.S. Department of Housing and Urban Development (HUD) – Supportive Housing for Persons
with Disabilities (Section 811) and Project Rental Assistance, Assistance Listing No. 14.181.
Condition
Three tenant files were selected for testing and the required documentation to determine
eligibility, as required by the HUD regulations, could not be located as follows:
For two of the files, Form HUD-50059, Owner’s Certification of Compliance with HUD’s
Tenant Eligibility and Rent Procedures had not been completed before the tenant’s
anniversary date as required by HUD.
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.