Finding Text
Finding # 2024-009
Federal Grantor: U.S. Department of Housing and Urban Development
AL # / Program: 14.181 - Supportive Housing for Persons with Disabilities
Type of Finding: Federal Award - Eligibility
Finding Resolution Status: In Process
Information on Universe Population Size: Lincoln Street Housing, Inc. owns a project with a total of 10 units of supportive housing for persons with disabilities in Fremont.
Sample size information: Audit procedures were performed on 3 tenant lease files.
Criteria: The PHA or owner must provide housing that is decent, safe, and sanitary. To achieve this end, the PHA must perform housing quality inspections at the time of initial occupancy and at least annually thereafter to ensure that the units are decent, safe, and sanitary (24 CFR sections 880.612, 881.601, 882.516, 882.808(n), 883.701, 884.217, 886.123, and 886.323).
Statement of Condition / Context: Of the 3 files test, all 3 files were missing documentation that annual unit inspections occurred as required by HUD Handbooks and Regulations.
Cause: Internal control over compliance with program compliance requirements are not operating effectively.
Effect or Potential Effect: The Project is out of compliance with the Capital Advance Program Regulatory Agreement on form HUD-92466-CA.
Auditor Non-Compliance Code: R - Section 8 Program Administration
Questioned Costs: No questioned costs associated with this finding.
Recommendations: We recommend the Owner/Agent review controls over compliance with unit inspection requirements.
Response Indicator: Agree
Completion Date: 6/30/2025
Reporting Views of Responsible Officials and Planned Corrective Action: "Annual inspections for FY2024 were not completed. FY2025 inspections were completed
in August 2024, and annual inspections were completed annually prior to FY 2024. Inspections will continue to be completed annually going forward.
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