Finding 51038 (2022-002)

-
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2022-11-15

AI Summary

  • Issue: Unit inspections were not conducted as required by HUD guidelines.
  • Impacted Requirement: Annual inspections of each unit were not performed, risking tenant safety and compliance.
  • Follow-up: Pompei North Apartments has resumed inspections and will document them properly moving forward.

Finding Text

Finding 2022-002: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Federal Assistance Listing Number 14.155 Criteria: The HUD Handbook requires owners to perform and document inspections of each unit on at least an annual basis. Condition: Unit inspections were not performed during the year. Context: We reviewed 5 tenant files for documentation of unit inspections. Cause: Pompei North Apartments did not ensure unit inspections continued through COVID. Effect: The tenant?s unit may not be in a decent, safe, and sanitary condition. Recommendation: We recommend that Pompei North Apartments resume unit inspections and ensure those inspections are properly documented in the tenant files. Views of management and planned corrective action: Pompei North Apartments has resumed unit inspections and will ensure those inspections are properly documented in the tenant files.

Corrective Action Plan

Finding 2022-002: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Federal Assistance Listing Number 14.155 Recommendation: Our auditors recommended that we resume unit inspections and ensure those inspections are properly documented in the tenant files. Action Taken: Unit inspections were completed in June 2022. Completion Date: June 2022 Name of Contact Person Responsible for Corrective Action: Kyle Lyskawa, CFO, (315) 424-1821.

Categories

HUD Housing Programs Procurement, Suspension & Debarment

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $1.49M
14.195 Section 8 Housing Assistance Payments Program $446,688