Finding 517985 (2024-001)

Finding No. 2024-001: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: Seventy-eight tenants. Sample Size Information: Ten tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulations require all initial and ongoing tenant eligibility documentation to be appropriately executed and maintained. Additionally, HUD requires timely verification of the tenant’s current income through the use of Enterprise Income Verification (EIV) reports. Statement of Condition: Missing documentation in tenant files or incorrect income utilized: • Two tenant files did not have an application stamp on the application for housing. • One tenant file did not contain a background check. • One tenant file contained a background check ran after move-in date. • Four tenant files did not contain verification of current income through the use of EIV reports. • Four tenant files contained verification of current income through the use of EIV reports after the 90 days requirement. • Three tenant files had the House rules signed after the move in date. • One tenant file was missing an annual unit inspection. • One tenant file did not have the move in inspection signed by the tenant. • One tenant file had income excluded from the form HUD-50059 in excess of $2,400 annually. Cause: The Project did not maintain appropriate tenant eligibility documentation as required by HUD. Effect or Potential Effect: Unable to properly verify the tenant's income, eligibility of residency, and cost of assistance and residency 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 tenant eligibility is verified, tenant files are properly maintained, and correct income amounts are utilized in the calculation of tenant rent. Response Indicator: Agree. Completion Date: 06/30/2025 Response: Staff training has been provided with additional HUD training, inclusive of EIV reporting and tenant file maintenance and included in monthly reporting procedures.