Finding 395869 (2023-001)

Significant Deficiency Repeat Finding
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2024-05-03
Audit: 305489
Auditor: Cohnreznick LLP

AI Summary

  • Core Issue: One out of three tenant files lacked timely EIV checks, violating HUD requirements.
  • Impacted Requirements: Compliance with HUD Handbook 4350.3 for tenant eligibility and lease file maintenance was inconsistent.
  • Recommended Follow-Up: Management should enhance monitoring to ensure timely EIV checks for all tenants moving forward.

Finding Text

Finding No. 2023-001; Federal Assistance Listing Number 14.181 Statement of Condition In connection with our lease file review, we noted that for one out of three tenants EIV was not performed timely. Criteria Tenant lease files are required to be maintained and tenant eligibility determined in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Cause Management's policies with respect to recertifications and eligibility and the maintenance of tenant lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs were not consistently followed. Effect or Potential Effect The procedures for determining tenant recertification eligibility and maintaining tenant lease files were not consistently applied in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. This could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Questioned Costs N/A Context For one out of three tenants EIV was not performed timely. Repeat Finding Yes; 2022-001 Recommendations Management should monitor compliance with their procedures to insure that EIV is run timely for all tenants. Auditor Noncompliance Code: E-Eligibility for Uniform Guidance; R-Section 8 Program Administration Findings Resolution Status: Resolved Views of Responsible Officials and Planned Corrective Action: REACH has policies in place to complete certifications in a timely manner but due to staffing shortages and tenant noncompliance issues the property continued to have issues with timely completion of income certifications in 2023. As new staff are brought onboard training is provided and annual HUD training is completed by all staff. Additional procedures have been implemented in 2023 to coordinate and provide assistance to on-site staff to ensure that the properties are in compliance.

Corrective Action Plan

Finding 2023-001; Federal Assistance Listing Number 14.181 Statement of Condition: In connection with our lease file review, we noted that for one out of three tenants EIV was not performed timely. Corrective Action: REACH has policies in place to complete certifications in a timely manner but due to staffing shortages and tenant noncompliance issues the property continued to have issues with timely completion of income certifications in 2023. As new staff are brought onboard training is provided and annual HUD training is completed by all staff. Additional procedures have been implemented in 2023 to coordinate and provide assistance to on-site staff to ensure that the properties are in compliance.

Categories

HUD Housing Programs Eligibility

Other Findings in this Audit

  • 395870 2023-002
    Significant Deficiency
  • 972311 2023-001
    Significant Deficiency Repeat
  • 972312 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $1.71M