Finding 396255 (2023-001)

FINDING No. 2023-001: Section 202 Supportive Housing for the Elderly ALN 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: Sixty-eight tenants. Sample Size Information: Ten tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulation requires that all tenants have criminal background checks performed prior to acceptance as residents, that unit inspections be performed annually, and that all required documentation be maintained in tenant files. Statement of Condition: One tenant’s file did not contain a criminal background check, one tenant’s file did not contain an annual unit inspection, and two tenant files did not contain security deposit payment support. Cause: The Project did not perform and/or maintain a criminal background check on one tenant, did not perform and/or maintain an annual unit inspection for one tenant, and did not maintain security deposit payment support for two tenants. Effect or Potential Effect: Unable to verify tenant eligibility and cost of assistance and residency may be disallowed, unable to determine whether the units have sustained damage requiring repair, and security deposit refunds for departing tenants may not be appropriately determined. Auditor Non-Compliance Code: R – Section 8 Program Admin. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations will be adopted. Recommendation: Management should implement procedures to ensure that the appropriate initial eligibility procedures are performed for potential tenants and that tenant files are properly maintained. Response Indicator: Agree. Completion Date: 9/30/2024 Response: Compliance hired a new compliance position for this area who is reviewing new move in files and recertification files for accuracy. In addition, training is being completed with then manager regarding screening, unit inspections, and security deposit back up verifications.