Finding Text
Finding 2024-003 U.S. Department of Housing and Urban Development Supportive Housing for Persons with Disabilities (Section 811) - Assistance Listing 14.181; Grant period - Year ended June 30, 2024 Material Noncompliance with Program Requirements Significant Deficiency Over Compliance: Unauthorized Management Fees Statement of Condition: The Project paid management fees of 104 in excess of the amount approved by HUD. Criteria: The HUD approved management agent certification (Form HUD - 9839-B) provides for payment of management fees equal to 9.13% of residential income collected. Cause of Condition: The Project’s sponsor inadvertently utilized incorrect residential income to calculate management fees. Effect of Condition: The Project is not in compliance with the HUD approved management agent certification and Section 811 Regulatory Agreement. Questioned Costs: 104 Identification of Repeat Finding: Not Applicable Recommendation: We recommend that the Project’s sponsor verify, monthly, the residual income used to calculate management fees. Management’s Response: The Project’s sponsor agrees with the recommendations. See Corrective Action Plan.