FAC Explorer

Finding 38461 (2022-001)

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Requirement
P
Questioned Costs
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Year
2022
Accepted
2023-07-11
Audit: 30387
Organization: Alberto E. Sanchez Project (PR)
Auditor: Jlm & CO LLP

AI Summary

  • High Vacancy Losses: Vacancy losses increased by $92,164 in FY 2022, now at $168,241, which is 7.26% of gross potential income.
  • Compliance Issue: Management is not following the Affirmative Fair Housing Marketing Plan due to failure to rehabilitate 13 units as per the HUD agreement.
  • Action Needed: Management should prioritize completing the unit rehabilitation to improve cash flow and reduce vacancy losses.

Finding Text

Finding No. 2022-001 1. CONDITION ? Vacancy losses is extremely high when compared to last year vacancy losses. Vacancy losses increased in fiscal year 2022 by $92,164, from $76,077 to $168,241, representing a 7.26% of gross potential income. 2. CRITERIA ? Management Agent is not in compliance with the Affirmative Fair Housing Marketing Plan since they undersigned Voluntary Compliance Agreement with HUD, No. 02-20-5450-8, that requires the rehabilitation of thirteen (13) units identified in the agreement. 3. EFFECT ? Negative impact in cash flows to the Project. 4. CAUSE ? Units in the Voluntary Compliance Agreement are not available to be rent to new tenants. 5. QUESTIONED COST ? Loss of tenant?s revenues in the amount of $92,164. 6. RECOMMENDATION ? Management Agent should complete the unit?s rehabilitation as soon as possible.

Corrective Action Plan

FUNDACION DE HOGARES PARA TRABAJADORES PO Box 11798 - Fernandez Juncos Sta. - San Juan, PR 00910-1798 Tel. (787) 268-0222, Fax (787) 268-0311 Villas de Monterrey Apartments HUD Project No. 056-44036-NP Year ended June 30, 2022 CORRECTIVE ACTION PLAN Finding No. 2022-001 Condition: Vacancy losses is extremely high when compared to last year vacancy losses. Vacancy losses increased in fiscal year 2022 by $92,164, from $76,077 to $168,241, representing a 7.26% of gross potential income. Effect: Negative impact in cash flows to the Project. Response: The actual number of Vacant Units as of 01/09/2023 is 6, which represent a 2.17% of all units at the property. Fundaci6n de Hogares para Trabajadores is currently undersigned Voluntary Compliance Agreement #02-20-5450-8, which requires rehabilitation of 13 units, as identified in the Agreement. The property currently has 14 units reserved and in Rehabilitation Status, to serve as temporary housing while the major accessibility changes are completed. January 10, 2023 Brenda Marquez Executive Director of FHT

Categories

HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.195 Section 8 Housing Assistance Payments Program $2.01M
14.195 Supplemental Assistance Covid 19 $1,728