Finding Text
Finding No. 2022-001; Federal Assistance Listing Number 14.157 Criteria 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 one out of three tenants did not have a recertification performed timely or the income verification with the use of the HUD Enterprise Income Verification ("EIV") performed 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 One out of three tenants did not have the EIV, or recertification performed timely. Repeat Finding No Questioned Costs N/A 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: E-Eligibility for Uniform Guidance; R-Section 8 program administration Finding Resolution Status: Unresolved Views of Responsible Officials and Planned Corrective Actions Due to either tenant non-compliance or challenges with scheduling meetings with tenants or obtaining verifications, some recertifications were completed late. REACH has policies in place to complete recertifications timely, and will be providing ongoing training and guidance to staff to make sure the policies are being followed.