FAC Explorer

Finding 478371 (2023-001)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2024-07-12
Audit: 315050
Organization: Boston Tremont Housing Development Fund Corporation (NY)
Auditor: Cohnreznick LLP

AI Summary

  • Core Issue: Timely recertification of tenants is not being performed, leading to potential eligibility errors.
  • Impacted Requirements: Compliance with HUD Handbook 4350.3 regarding tenant eligibility and lease file maintenance is inconsistent.
  • Recommended Follow-Up: Management should implement and monitor new procedures to ensure proper tenant eligibility determinations and timely lease file updates.

Finding Text

C. Federal Award Findings and Questioned Costs Finding No. 2023-001- Tenants are not recertified timely Criteria Tenant lease files are required to be maintained and tenant eligibility determined in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Condition In connection with our review of 26 lease files we noted the following deficiency: 5 files did not have timely recertification of tenants and income verification documentation was performed later than the required recertification date. Cause Management's policies with respect to the determination of eligibility and the maintenance of tenant lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs were not consistently followed. Effect The procedures for determining tenant security deposits and eligibility and maintaining tenant lease files were not consistently applied in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. This 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 tenant eligibility is correctly determined and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. . Reporting Views of Responsible Officials Management has addressed the issue by recertifying the tenants and does not expect late recertifications to occur again. Auditor Noncompliance Code E- Eligibility

Corrective Action Plan

Corrective Action Plan Project Legal Name: Boston Tremont Housing Development Fund Corporation HUD Project Nos.: NY 36L000080 and NY 36L000081 Audit Firm: CohnReznick LLP Period covered by the audit: December 31, 2023 Corrective Action Plan prepared by: Name: Lukeman Ogunyinka Position: Chief Financial Officer Telephone Number: (212) 243-9090 The following is a recommended format to be followed by the auditee for preparing a corrective action plan: A. Current Findings on the Schedule of Findings, Questioned Costs and Recommendations 1. Finding 2023-1 a. Comments on the Finding and Each Recommendation 4 out of 26 tenants tested did not have an annual tenant recertification Form HUD 50059 completed timely. Moving forward, management will follow established 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 the guidelines specified by HUD. b. Action(s) Taken or Planned on the Finding Management has addressed the issue by recertifying the tenant and does not expect a late recertification to occur again based on procedures in place.

Categories

Eligibility HUD Housing Programs Reporting

Other Findings in this Audit

  • 1054813 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.195 Section 8 Housing Assistance Payments Program $8.42M