Finding 484632 (2023-001)

FINDING No. 2023-001: Section 236 Mortgage Restructuring Note, ALN 14.103 Finding Resolution Status: Unresolved. Information on Universe Population Size: One hundred twenty tenants. Sample Size Information: Twenty tenants. Identification of Repeat Finding and Finding Reference Number: Yes, 2022-001. Criteria: HUD regulations require timely verification of tenant’s initial income through the Enterprise Income Verification (EIV) performed within 90 days of the tenant being entered into Tenant Rental Assistance Certification System (TRACS) with the corresponding documentation maintained. Statement of Condition: The Project attempted to obtain an EIV for one tenant utilizing incorrect information resulting in an accurate report not being obtained within 90 days. Cause: The Project did not adhere to HUD regulations for initial eligibility and did not perform timely income verification. Effect or Potential Effect: Alternative income documentation was provided to verify tenant eligibility and cost of assistance; however, the accuracy of such information was not verified through the EIV system as required by HUD. Auditor Non-Compliance Code: R – Section 8 Program Administration Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations will be adopted. Recommendation: The Project should implement procedures to ensure the Project verifies tenant eligibility through the EIV system in a timely manner. Response Indicator: Agree. Completion Date: 12/31/2024 Response: Staff training has been provided and included in monthly reporting procedures.