Finding Text
Finding No. 2024-004: Section 202 Supportive Housing for the Elderly, ALN 14.157
Finding Resolution Status: Unresolved.
Information on Universe Population Size: Thirty-three tenants.
Sample Size Information: Five 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, timely verification of tenant’s income through the use of Enterprise Income Verification (EIV) reports with the corresponding documentation maintained, and the timely submitted HAP requests to include all eligible tenants.
Statement of Condition: Of the tenant files selected: one tenant did not have a background check ran prior to the date of move-in; three tenants did not have verification of their income through the use of EIV reports within the 90-day requirement; and one tenant eligible for PRAC was excluded from all monthly HAP requests since moving in during August 2023.
Cause: The Project did not obtain tenant related reports in accordance with HUD requirements, maintain appropriate tenant eligibility documentation as required by HUD, nor include a tenant on the monthly HAP requests.
Effect or Potential Effect: Unable to verify tenant eligibility and cost of assistance may be disallowed. The Project did not receive PRAC funds that it was entitled to.
Auditor Non-Compliance Code: R – Section 8 Program Admin.
Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendation will be adopted.
Recommendation: Management should ensure that initial and ongoing tenant eligibility documentation is obtained timely and appropriately maintained, tenant eligibility is verified, and all tenants eligible to receive PRAC are included on the monthly HAP requests.
Response Indicator: Agree.
Completion Date: 06/30/2025
Response: Monthly reminders are being sent to all managers to run their tenant reports to maintain eligibility. In addition, random files are being reviewed by compliance to ensure all required documentation is completed.