Finding 399961 (2023-001)

-
Requirement
N
Questioned Costs
$1
Year
2023
Accepted
2024-06-05

AI Summary

  • Issue: Miscalculations in tenant payments were found in 2 out of 36 reviewed files.
  • Requirements Impacted: HUD criteria for determining tenant eligibility and calculating payments were not fully met.
  • Follow-Up: Property management needs to ensure all income sources are included in future calculations of tenant payments.

Finding Text

Statement of Condition: We reviewed 36 files (recertification, initial certification, and move-out files) for the fiscal year ended December 31, 2023. The selected files represent a sample of all files in the program. Criteria: HUD requires that certain criteria be met when determining tenant eligibility, selecting applicants from the waiting list, and calculating total tenant payments. Effect: We noticed two instances in which total tenant payments were miscalculated. Tenant income was understated, resulting in an understatement of tenant rent by $290 per month. Cause: Property management did not properly include all income sources in calculating total tenant payments. Recommendation: Property management should address all sources of income/allowed deductions when calculating total tenant payment.

Corrective Action Plan

Management agrees with the finding. Corrections have been made to both tenant files. One tenant has been given a 30 day notice to vacate the unit.

Categories

Questioned Costs Eligibility HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $9.37M
14.195 Project-Based Rental Assistance $1.62M