Finding 517261 (2024-001)

-
Requirement
N
Questioned Costs
$1
Year
2024
Accepted
2024-12-31
Audit: 335277
Organization: Port Isabel Housing Authority (TX)

AI Summary

  • Core Issue: Land was transferred without clear HUD approval, violating federal requirements.
  • Impacted Requirements: Transfers of land from low rent programs must be approved by HUD (2 CFR Part 970).
  • Recommended Follow-Up: PHA should secure HUD approval for the transfer or provide documentation showing it wasn't needed.

Finding Text

2024-001 - Public and Indian Housing - ALN No. 14.850. Criteria or Specific Requirement: Transfers of land from the low rent program should be approved by HUD (2 CFR Part 970). Condition: - Land (2.48 acres) that was previously approved by HUD to be leased to a tax credit entity was transferred to the Port Isabel Public Facilities Corporation to be used for a new low income housing development. The PHA could not find documentation that HUD approval was obtained, or was not required. Cause: Unknown. Effect: Land was transferred from the PHA's low rent program to the Port Isabel Public Facilities Corporation. Questioned Costs: The value of the land transferred. Repeat Finding: Not a repeat finding. Reccomendation: The PHA should obtain approval from HUD for the land transfer, or document that approval was not required. Response: The PHA will obtain the recommended documentation.

Corrective Action Plan

2024-001 - Corrective Action Plan - Land transfer to PFC. Contact person - Executive Director. Corrective action planned - The PHA will document that the land transfer was approved by HUD, or that approval was not necessary. Anticipated completion date - Within the next year.

Categories

Questioned Costs HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $619,102
14.850 Public Housing Operating Fund $229,885
14.872 Public Housing Capital Fund $75,418