Finding 51319 (2022-001)

Finding No. 2022-001: Section 202 Supportive Housing for the Elderly, CFDA 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: Seventy-five tenants. Sample Size Information: Ten tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulation requires that tenant income be calculated in accordance with the HUD Handbook Chapter 5: Determining Income & Calculating Rent and that tenants sign the form HUD-50059 at the time of reverification and retained in the tenant files. Statement of Condition: Of the tenant files selected, three tenants' income was not correctly calculated and one tenant's recertification form HUD-50059 was not signed by the tenant. Cause: The Project incorrectly calculated tenant income and did not complete an interim recertification to correct the errors. Additionally, the Project did not obtain a tenant's signature on the form HUD-50059 at the time of recertification. Effect or Potential Effect: The Project incorrectly charged three tenants and did not obtain one tenant's consent to renew their lease. 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 have been adopted. Recommendation: The Project should calculate rent in accordance with HUD regulation and maintain all required tenant documentation. Response Indicator: Agree. Completion Date: 6/30/2023 Response: Management will provide training to new managers on the correct method of calculating tenant income. During the next 3-4 months, the income calculations for all move in certifications and annual re-certifications will be reviewed by Compliance for accuracy prior to the manager finalizing the certification.