Finding Text
2023-001 Assistance Listing No. 14.239 HOME Investment Partnerships Program (HUD)
Eligibility
Criteria: 2 CFR Part 92.252(h) stipulates each year during the period of affordability, the project owner must re-examine each tenant’s annual income.
Condition: Of the 14 tenant files tested, 5 tenants’ annual recertifications were not completed within one year of the last recertification.
Cause: In fiscal year 2022, the Organization contracted with a third party to determine eligibility of tenants. During fiscal year 2023, it was determined the third party failed to complete annual recertifications timely. The Organization contracted with a new third party in fiscal year 2023, but they were unable to fully catch up on the recertifications.
Effect: Annual recertifications were not performed timely which could allow ineligible tenants to remain on the program.
Questioned Costs: None
Recommendation: The Organization, or a third-party provider, should perform annual recertifications timely.
Views of Responsible Officials and Planned Corrective Actions: See corrective action plan included in report.