Finding Text
Criteria - Eligibility
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.
Condition
In connection with our lease file review, we noted the following deficiencies: 2 out of 4 tenants tested did not utilize the Enterprise Income Verification (EIV) system timely.
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. Effect or Potential Effect
Noncompliance with HUD guidelines could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD.
Context
A sample of 4 tenant files from a population of 28 were selected. We identified exceptions in 2 out of the 4 files tested. The sample in not a statistically valid sample.
Identification as a Repeat Finding
Not a repeat finding.
Questioned Costs
None
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.
Auditor Noncompliance Code: R - Section 8 program administration
Finding Resolution Status: In-Process
Views of Responsible Officials
2 out of the 4 tenants did not utilize the EIV system in a timely manner. Each resident’s information is processed before moving in to ensure they don’t have tenancy elsewhere. Going forward, management will ensure that the EIV system is utilized correctly and timely.