Finding Text
Program Name: 21.026 Homeowners Assistance Fund
Criteria: The Organization is expected to establish and adhere to reasonable policies and procedures for evaluating homeowners’ applications in accordance with the Homeowners Assistance Fund (HAF) Guidance which permits HAF participants to reasonably rely on self‐attestation. Specifically related to income determination requirements, the Organization allows the homeowner to provide a written attestation as to household income together with supporting documentation such as paystubs, W‐2’s or other wage statements, IRS Forms 1099, tax filings, depository institution statements demonstrating regular income, or an attestation from an employer.
Condition: The Organization had two instances in a sample size of 40 where appropriate review of homeowner’s income had not taken place. In both instances, the applicants’ income support was materially accurate and still met required eligibility and, therefore, were in compliance.
Cause of Condition: The Organization failed to properly review and summarize income support provided by applicants.
Potential Effect of Condition: Although the condition above did not result in noncompliance, if the cause of condition were to reoccur, noncompliance could occur and, ultimately, the HAF funding could get denied.
Recommendation: The Organization should establish policies and procedures to carefully review income support and consider whether the individual meets eligibility requirements. Views of Responsible Officials: Management has acknowledged the finding and management will provide updated training to underwriters and processors to accurately fill out eligibility checklists and confirm that support matches. Additionally, the Program Manager will select and review files monthly and the Financial Services Director will review files on a quarterly basis.