Finding 48497 (2022-001)

Finding 2022-001 Condition: The Organization failed to produce recertification documents (HUD form 50059) for the annual recertification for 1 of 5 tenant files examined. Criteria: Entities with Section 202 loans are required to fulfill eligibility requirements that involve the annual recertification of participating tenants. Cause: One tenant file did not have complete documentation to support eligibility for rental assistance. Specifically, one tenant did not have proper record of HUD 50059 recertification form. Effect: The Organization is in non-compliance with the aforementioned HUD requirement. Recommendation: The Organization review tenant file procedures to ensure that required documentation are obtained and maintained in accordance with HUD regulations. Auditee Response: The onsite manager has been replaced, and steps have been implemented to correct the issue.