Finding 509721 (2024-001)

FINDING No. 2024-001: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Rental Housing Projects, ALN 14.155 Finding Resolution Status: Unresolved. Information on Universe Population Size: One hundred nineteen tenants. Sample Size Information: Twenty tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulation requires all initial and ongoing tenant eligibility documentation to be obtained timely and maintained during tenancy. Additionally, unit inspections must be performed annually. Statement of Condition: Missing documentation in tenant files: • Two Form 50059 were signed after the effective date by the tenants. • One tenant file was unable to be obtained. • One tenant file did not contain a background check. • Three tenant files did not contain annual unit inspection reports. Cause: The Project did not maintain appropriate tenant eligibility documentation as required by HUD. Effect or Potential Effect: Unable to verify tenant eligibility and cost of assistance 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 initial and ongoing tenant eligibility documentation is obtained timely, and that unit inspections are performed annually. Response Indicator: Agree. Completion Date: 3/31/2025 Response: Staff training has been provided with additional HUD training inclusive of EIV reporting and included in monthly report procedures.