Finding 42029 (2022-001)

FINDING No. 2022-001: Section 202 Supportive Housing for the Elderly, CFDA 14.157 Finding Resolution Status: Resolved. Information on Universe Population Size: Total assistance revenue. Sample Size Information: All monthly PRAC requests. Identification of Repeat Finding and Finding Reference Number: Yes, 2021-001. Criteria: As required by HUD regulations, applications for renewal of the PRAC contracts must be completed within 120 days of the contract expiration date. Statement of Condition: The Project did not complete the renewal process within 120 days of the contract expiration date. Cause: The Project did not follow HUD regulations for contract renewal resulting in the delay of HUD funding and short term loans taken from the Replacement Reserve. Effect or Potential Effect: The Project is not in compliance with HUD regulations for an untimely renewal of the PRAC contract. 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 have been adopted. Recommendation: The Project should comply with HUD regulations for the timely renewal of the PRAC contract. Response Indicator: Agree. Completion Date: 4/4/2022 Response: Compliance Department has implemented a system to monitor and track HUD contract renewals to ensure the process will be completed in a timely manner going forward.