Finding Text
Finding No. 2023-002
Department of Housing and Urban Development
Federal Assistance Listing Number 14.157 Supportive Housing for the Elderly (Section 202)
Statement of Condition
The Project did not maintain evidence in the lease file to support review of the Enterprise Income
Verification ("EIV") system within 90 days of the tenant moving into the Project.
Cause
Policies and procedures, which have been established for proper tenant file maintenance and
determining tenant eligibility in accordance with HUD guidelines, were not followed.
Effect or Potential Effect
Noncompliance with HUD guidelines could result in units being rented to ineligible tenants or errors
in the rent subsidies paid by HUD.
Questioned Costs
None
Context
A noncompliance was found in the one move in that was tested.
Identification as a Repeat Finding
This is not a repeat finding.
Criteria
Management is responsible for determining tenant eligibility and maintaining lease files in
accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily
Housing Programs.
Auditor Noncompliance Code: Z - Other
Recommendations
Management should monitor compliance with established procedures to ensure the determination
of tenant eligibility and the maintenance of lease files are in accordance with guidelines specified by
HUD.
Views of Responsible Officials and Planned Corrective Actions
The compliance monitoring report has now been completed. Staff reviewed the policies and
procedures to prevent future occurrences.