Finding Text
Department of Housing and Urban Development Finding 2022-002 Section 202 Supportive Housing for the Elderly, AL 14.157 Statement of Condition During the procedures applied to a sample of six tenant lease files, we noted six instances of noncompliance with HUD regulations regarding tenant eligibility and the maintenance of lease files, where the project did not maintain evidence of EIV report data in the lease file. Criteria Tenant lease files are required to be maintained and tenant eligibility determined in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Cause The project failed to follow the policies and procedures which have been established for proper tenant file maintenance and determining tenant eligibility. Effect or Potential Effect Noncompliance with HUD guidelines could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Questioned Costs None Recommendation Management should establish procedures and monitor compliance with those procedures to insure that tenant eligibility is correctly determined and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Auditor Noncompliance Code: R - Section 8 program administration (REAC); E - Eligibility (UG) Finding Resolution Status: Unresolved Views of Responsible Officials Management agrees with the finding. The property was sold subsequent to year end with HUD approval and all tenant files were transferred to buyer. Therefore we consider this matter closed.