Finding 46536 (2022-002)

Department of Housing and Urban Development Finding 2022-002 Section 202 Supportive Housing for the Elderly, Assistance Listing No. 14.157 Statement of Condition During the procedures applied to a sample of six tenant lease files, we noted the following instances of noncompliance with HUD regulations regarding tenant eligibility and the maintenance of lease files: 1. Four instances where the Project did not have documentation in their lease file that their income was timely verified. 2. One instance where the Project did not have annual tenant recertification Form 50059 completed timely. Criteria Management is responsible for determining tenant eligibility and maintaining lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Cause The Project failed to follow the policies and procedures which have been established for proper tenant file maintenance and determining tenant eligibility in accordance with HUD guidelines during the transition to new management and new ownership. Effect Noncompliance with HUD guidelines could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Recommendation Management should establish procedures and monitor compliance with those procedures to ensure that the determination of tenant eligibility and the maintenance of lease files are in accordance with guidelines specified by HUD, even during transition of management and/or ownership. Auditor Noncompliance Code: R - Section 8 program administration; E - Eligibility (UG) Finding Resolution Status: Resolved Reporting Views of Responsible Officials Management agrees with the finding.