Finding Text
Finding #2023-003: Section 8 Housing Assistance Payments Program Assistance Listing 14.195
Project Name of Afton Gardens, LLC, FHA/Contract No. of VA36L00002, Amount of $18,183; Project Name of Boulder Creek, LLC, FHA/Contract No. of SC16M000064, Amount of $42,313; Project Name of Brentwood Crossing, LLC, FHA/Contract No. of NC19M000070, Amount of $266,088;
Project Name of Brittany Woods/Park Chase, LLC, FHA/Contract No. of GA06L00060, Amount of $23,154;
Project Name of Cedar Moor, LLC, FHA/Contract No. of NC19L000146, Amount of $14,359;
Project Name of Crescent Hills, LLC, FHA/Contract No. of SC16M000062, Amount of $33,321;
Project Name of Spring Grove, LLC, FHA/Contract No. of SC16L000003 and SC160056002, Amount of $45,038;
Project Name of Timber Ridge, LLC, FHA/Contract No. of NC19M000088, Amount of $26,759;
Project Name of Gretna Village, LP, FHA/Contract No. of 02-1709-HF/SP and 02-1710-HCD, Amount of $5,839;
Project Name of Waters at James Corssing, LP, FHA/Contract No. of VA36L000130, Amount of $9,041; Total of $484,095.
Condition: The Projects paid management fees during 2022 and 2023 at an
increased rate of 5% without approval from HUD.
Criteria: The Projects property management fees must follow the HUD approved
management agreement.
Effect: The Projects overpaid property management fees in 2022 and
2023.
Questioned Cost: $484,095
Cause: Oversight
Repeat Finding: No
Recommendation:
The Projects need to submit the new management fee rate on HUD
Form 9839 for approval.
Auditor’s Comment: The Projects are in the process of submitting the updated Form 9839 to
HUD for approval.