Finding 503164 (2024-001)

FINDING No. 2024-001: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, ALN 14.155 Finding Resolution Status: Unresolved. Information on Universe Population Size: Thirty-nine tenants. Sample Size Information: Six tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulations require all initial and ongoing tenant eligibility documentation to be appropriately executed and maintained. Additionally, HUD requires timely verification of the tenant’s current income through the use of Enterprise Income Verification (EIV) reports. Statement of Condition: Missing documentation in tenant files: • One tenant file was unable to be obtained. • One tenant file did not contain verification of current income through the use of the EIV report and the indication of the date and time received was not present on the application. Cause: The Project did not maintain appropriate tenant eligibility documentation as required by HUD. Effect or Potential Effect: Unable to properly verify the tenant's income, eligibility of residency, and cost of assistance and residency may be disallowed. 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 that tenant eligibility is verified, and tenant files are properly maintained. Response Indicator: Agree. Completion Date: 03/31/2025. Response: Staff training has been provided and included in monthly reporting procedures.