Finding 529140 (2024-001)

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Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-03-20

AI Summary

  • Core Issue: Syracuse YMCA Apartments did not complete tenant recertifications on time, violating HUD requirements.
  • Impacted Requirements: Timely recertifications are essential for verifying tenant eligibility and accurate rent calculations, ensuring compliance with HUD regulations.
  • Recommended Follow-Up: Ensure all overdue recertifications are completed promptly and establish internal policies to maintain compliance with HUD timelines moving forward.

Finding Text

Multifamily Housing Projects – AL No. 14.155 a. Condition: During the audit of Syracuse YMCA Senior Citizen Housing Development Fund Corporation (Syracuse YMCA Apartments), it was identified that property management failed to perform required tenant recertifications for multiple tenants within the HUD required time frame. b. Criteria: Syracuse YMCA Apartments is required to provide timely and accurate recertifications to HUD to verify compliance with tenant eligibility and rent calculations. c. Effect: The project is not in compliance with the HUD Regulatory Agreement as it relates to the annual recertification of tenants. This failure can result in incorrect rent calculations, potentially causing overpayments or underpayments of subsidies and suspension of subsidy payments. d. Cause: Procedures are in place for annual tenant recertification. However, due to significant employee turnover and lack of property management staff, there was an oversight by the managing agent in ensuring all tenants were recertified annually in accordance with HUD guidelines. e. Recommendation: Syracuse YMCA Apartments should take measures to ensure that all tenants who have missed their recertification deadlines are properly recertified as soon as administratively feasible. In addition, management should implement internal policies to ensure all future recertifications are completed within HUD’s required timeline to avoid further disruption of subsidy payments. f. Views of Responsible Officials and Planned Corrective Actions: Syracuse YMCA Apartments agrees with the finding and the auditor’s recommendations have been adopted.

Corrective Action Plan

Finding No. 2024-001: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects – AL No. 14.155 Finding: During the audit of Syracuse YMCA Senior Citizen Housing Development Fund Corporation (Syracuse YMCA Apartments), it was identified that property management failed to perform required tenant recertifications for multiple tenants within the HUD required time frame. Recommendation: Syracuse YMCA Apartments should take measures to ensure that all tenants who have missed their recertification deadlines are properly recertified as soon as administratively feasible. In addition, management should implement internal policies to ensure all future recertifications are completed within HUD’s required timeline to avoid further disruption of subsidy payments. Action Taken: Syracuse YMCA Apartments agrees with the finding and going forward will make every effort to recertify tenants within the required timeframe. If the U.S. Department of Housing and Urban Development has questions regarding this plan, please call Anne Hawkes at (315) 474-6851.

Categories

Procurement, Suspension & Debarment Eligibility HUD Housing Programs Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $1.69M
14.195 Project-Based Rental Assistance (pbra) $254,838