Finding 400447 (2022-001)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2024-06-10
Audit: 308469
Auditor: Cohnreznick LLP

AI Summary

  • Core Issue: Required on-site inspections for HUD HOME assisted rental housing were not conducted in 2022.
  • Impacted Requirements: Compliance with property standards and housing quality standards was not verified, risking non-compliance with HUD regulations.
  • Recommended Follow-Up: Management should ensure all units meet HUD standards and address any findings promptly moving forward.

Finding Text

Finding No. 2022-001 HUD HOME Investment Partnerships Program Federal Assistance Listing Number #14.239 Uniform Guidance Compliance Requirement Code: N-Special Tests and Provisions Criteria During the period of affordability (i.e., the period for which the nonfederal entity must maintain subsidized housing) for HOME assisted rental housing, the participating jurisdiction must perform on-site inspections to determine compliance with property standards and verify the information submitted by the owners no less than (a) every three years for projects containing one to four units, (b) every two years for projects containing five to 25 units, and (c) every year for projects containing 26 or more units. The participating jurisdiction must perform on-site inspections of rental housing occupied by tenants receiving HOME/HOME-ARP-assisted tenant-based rental assistance to determine compliance with housing quality standards (24 CFR sections 92.209(i), 92.251(f), and 92.504(d)). Condition The owner did not ensure passing HQS inspections were performed during 2022. Cause Management did not perform HQS inspections during 2022 due to the COVID-19 pandemic as they were unable to safely gain access to the units. Effect or Potential Effect Housing units may be out of compliance with HUD Quality Standards. Questioned Costs: Not applicable. Context In connection with the procedures applied to tenant file testing there were 8 instances of the 8 files tested where the passing HQS inspections were not performed during the year ended December 31, 2022. Repeat Finding: Yes - Finding 2021-003 Recommendation Management should resume making sure all units meet the HUD Housing Quality Standards and ensure that the responses to any findings are cleared timely. Views of Responsible Officials Unit inspections are being done for 2023.

Corrective Action Plan

Finding No. 2022-001 - HUD HOME Investment Partnerships Program, Federal Assistance Listing Number #14.239 Statement of Condition: The owner did not ensure passing HQS inspections were performed during 2022. Corrective Action: Unit inspections are being done for 2023.

Categories

Special Tests & Provisions HUD Housing Programs Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 400448 2022-002
    Significant Deficiency
  • 400449 2022-003
    Significant Deficiency Repeat
  • 400450 2022-004
    Significant Deficiency Repeat
  • 400451 2022-005
    Significant Deficiency Repeat
  • 400452 2022-006
    Significant Deficiency
  • 400453 2022-007
    Significant Deficiency
  • 976889 2022-001
    Significant Deficiency Repeat
  • 976890 2022-002
    Significant Deficiency
  • 976891 2022-003
    Significant Deficiency Repeat
  • 976892 2022-004
    Significant Deficiency Repeat
  • 976893 2022-005
    Significant Deficiency Repeat
  • 976894 2022-006
    Significant Deficiency
  • 976895 2022-007
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.218 Community Development Block Grants/entitlement Grants $1.76M
14.275 Housing Trust Fund $1.63M
99.999 Low Income Housing Preservation and Resident Homeownership Act of 1990-Capital Grant $964,955
21.027 Coronavirus State and Local Fiscal Recovery Funds $919,510
14.195 Section 8 Housing Assistance Payments Program $573,080
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $543,690
21.000 Section 607(e ) of the Neighborhood Reinvestment Corporation Act, As Amended $477,500
14.241 Housing Opportunities for Persons with Aids $380,000
14.239 Home Investment Partnerships Program $214,929
21.023 Emergency Rental Assistance Program $32,915