Finding 400448 (2022-002)

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

AI Summary

  • Core Issue: One out of eight tenant files lacked required 3rd party income verification, violating compliance guidelines.
  • Impacted Requirements: Tenant eligibility and lease file maintenance must align with the Oregon HOME Program Compliance Manual.
  • Recommended Follow-Up: Implement and monitor procedures to ensure timely recertifications and accurate income verifications for all tenants.

Finding Text

Finding No. 2022-002 HUD HOME Investment Partnerships Program Federal Assistance Listing Number #14.239 Uniform Guidance Compliance Requirement Code: E-Eligibility Criteria Tenant lease files are required to be maintained and tenant eligibility determined in accordance with the Compliance in State of Oregon Housing and Community Services HOME Program Compliance Manual. Condition In connection with our lease file review we noted one instance of eight tenants tested where management did not perform a 3rd party income verification in accordance with policy. Cause Management’s policies with respect to recertifications and eligibility and the maintenance of tenant lease files in accordance with Compliance in State of Oregon Housing and Community Services HOME Program Compliance Manual were not consistently followed. Effect or Potential Effect This could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Questioned Costs: Not applicable. Context In connection with the procedures applied to our HOME units testing, one of the eight tenants tested did have the 3rd party income verification performed timely. Repeat Finding: No Recommendation Management should establish procedures and monitor compliance with those procedures to ensure that recertifications and correct income verification procedures are performed timely, tenant eligibility is correctly determined and that tenant lease files are properly maintained in accordance with the requirements of Compliance in State of Oregon Housing and Community Services HOME Program Compliance Manual. Views of Responsible Officials Community Manager reviewed file noting 2017 and 2018 were both done as self-certifications. REACH is currently doing full reviews for all HOME units during 2023.

Corrective Action Plan

Finding No. 2022-002 - HUD HOME Investment Partnerships Program, Federal Assistance Listing Number #14.239 Statement of Condition: In connection with our lease file review we noted one instance of eight tenants tested where management did not perform a 3rd party income verification in accordance with policy. Corrective Action: Community Manager reviewed file noting 2017 and 2018 were both done as self-certifications. REACH is currently doing full reviews for all HOME units during 2023.

Categories

Eligibility HUD Housing Programs

Other Findings in this Audit

  • 400447 2022-001
    Significant Deficiency Repeat
  • 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