Finding Text
S3800-010 Finding Reference Number – 2023-001
S3800-011 Title and CFDA Number of Federal Program –
Section 202 Supportive Housing for the Elderly, Capital Advance and Project Rental Assistance Contract, ALN 14.157
S3800-015 Type of Finding – Federal Award Finding; Other Matters
S3800-016 Finding Resolution Status – In progress
S3800-017 Information on Universe Population Size – 19 PRAC units
S3800-018 Sample Size Information – 5 tenant files. Errors were found on 2 out of the 5 tenants tested.
S3800-019 Identification of Repeat Finding and Finding Reference Number – N/A
S3800-020 Criteria –
Per HUD Handbook 4350.3 Rev-1: Owners are responsible for obtaining the original signature of the head of household, spouse, any individual listed as co-head and all other adult members of the household on the HUD model lease and required lease attachments and addendums. In addition, owners are responsible for obtaining a signed declaration of citizenship or eligible noncitizen/immigration status. There are also the optional following documents Owners are responsible for providing applicants the opportunity to complete: (1) form HUD-92006, Supplement to Application for Federally Assisted Housing and (2) form HUD-27061-H, Race and Ethnic Data Reporting Form.
S3800-030 Statement of Condition –
During our audit, we noted one instance where the tenant file did not contain a signed executed HUD model lease.
In addition, during our audit, we noted one instance where management did not obtain the following documents signed by the head of household during the move-in process: (1) VAWA lease addendum, (2) HOME program lease addendum, (3) WA State Commerce HOME Student Status form, (4) form HUD-92006, (5) declaration of citizenship, (6) form HUD-27061-H.
S3800-032 Cause –
Management failed to obtain the appropriate signatures and maintain the original signed forms in the tenant’s file at the project site.
S3800-033 Effect or Potential Effect –
The procedures for maintaining tenant lease files were not consistently applied in accordance with HUD Handbook 4350.3. This could result in units being rented to ineligible tenants or errors in rent subsidies paid by HUD.
S3800-035 Auditor Non-Compliance Code – R (Section 8 Program Administration)
S3800-037 FHA/Contract Number – 171-EE015
S3800-038 Questioned Costs – $0
S3800-040 Questioned Costs – $0
S3800-045 Reporting Views of Responsible Officials –
Sessions Village 202 is in agreement with the findings, and the recommendations have been implemented.
S3800-050 Context –
A sample of 5 tenant files were selected for testing from a population of 19 PRAC units. 2 out of the 5 tenant files did not contain the required completed forms. This was not a statistically valid sample.
S3800-080 Recommendation –
We recommend Sessions Village 202 obtain the missing signed documents if the tenant still resides at the project. In addition, we recommend Sessions Village 202 review all tenant files to ensure all other records are complete.
Also, we recommend staff involved in the tenant move-in process review the requirements and revise their current process and procedures as needed to ensure the appropriate forms are completed correctly and kept in the tenant files going forward. Additional controls could include completing a checklist of required signed forms obtained during the move-in process.
S3800-090 Auditor’s Summary of Auditee Comments on the Findings and Recommendations –
The first tenant listed above no longer resides at the project and a signed HUD model lease cannot be obtained. On November 7, 2023, the Property Manager at Sessions Village 202 obtained the missing signed documents for the second tenant listed above.
The Property Manager at Sessions Village 202 will review the process and procedures in place, and implement controls to ensure the appropriate forms are completed correctly and kept in the tenant files going forward.
S3800-130 Response Indicator – Agree
S3800-140 Completion Date – September 30, 2024
S3800-150 Response –
The first tenant listed above no longer resides at the project and a signed HUD model lease cannot be obtained. On November 7, 2023, the Property Manager at Sessions Village 202 obtained the missing signed documents for the second tenant listed above.
The Property Manager at Sessions Village 202 will review the process and procedures in place, and implement controls to ensure the appropriate forms are completed correctly and kept in the tenant files going forward.
S3800-160 Contact Person First Name – Ashley
S3800-180 Contact Person Last Name – Healey