Finding 44735 (2022-003)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-07-02

AI Summary

  • Core Issue: The property failed to meet maintenance standards, scoring only 20c in the REAC inspection.
  • Impacted Requirements: Management did not follow procedures to maintain the property as required by HUD regulations.
  • Recommended Follow-Up: Ensure all findings from the REAC report are addressed promptly, with major repairs scheduled to start in July 2023.

Finding Text

Department of Housing and Urban Development Finding No. 2022-003; Section 811, CFDA 14.181 Statement of Condition Management failed to maintain the property in good repair and received a score of 20c in its December 8, 2021 REAC Physical inspection. Criteria In accordance with the regulatory agreement, management is required to maintain the property in good repair. Questioned Costs None Effect The Project was unable to obtain a passing score on its REAC inspection. Cause The procedures to ensure compliance with HUD regulations regarding physical condition of the property were not followed. Recommendation Management should correct all findings noted in the REAC Physical Inspection Report in the time frames requested in the physical inspection. Auditor Noncompliance Code: I - Failure to maintain property/open physical inspection. Finding Resolution Status: Cleared. Views of Responsible Officials and Planned Corrective Actions The December 2021 REAC inspection found multiple deficiencies at North General / Foundation House East. Seven Health and Safety violations were identified and resolved within 72 hours. In addition, all smaller repairs were made within two weeks following the inspection. Several major capital repairs were also cited in the REAC inspection, particularly the roof, the facade, windows and trash compactor. These repairs are extensive and required additional funding. In the months following the REAC inspection, Harlem United senior management prioritized identifying new funding specifically for major capital projects in supportive housing buildings. Additional funding was granted by HUD and became available to North General / Foundation House East in spring 2022, and soon after bids were obtained from vendors. Repairs to the roof, facade, windows and compactor are scheduled to begin in July 2023. In addition, facility staff work with program staff to identify and address minor repairs in tenants? units and in common areas on an ongoing basis

Corrective Action Plan

The December 2021 REAC inspection found multiple deficiencies at North General / Foundation House East. Seven Health and Safety violations were identified and resolved within 72 hours. In addition, all smaller repairs were made within two weeks following the inspection. Several major capital repairs were also cited in the REAC inspection, particularly the roof, the facade, windows and trash compactor. These repairs are extensive and required additional funding. In the months following the REAC inspection, Harlem United senior management prioritized identifying new funding specifically for major capital projects in supportive housing buildings. Additional funding was granted by HUD and became available to North General / Foundation House East in spring 2022, and soon after bids were obtained from vendors. Repairs to the roof, facade, windows and compactor are scheduled to begin in July 2023. In addition, facility staff work with program staff to identify and address minor repairs in tenants? units and in common areas on an ongoing basis.

Categories

HUD Housing Programs Procurement, Suspension & Debarment

Other Findings in this Audit

  • 44733 2022-001
    Material Weakness Repeat
  • 44734 2022-002
    Material Weakness
  • 621175 2022-001
    Material Weakness Repeat
  • 621176 2022-002
    Material Weakness
  • 621177 2022-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $231,506