Finding 555733 (2024-001)

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. Condition In connection with our lease file review, we noted the following deficiencies: 1 out of 10 tenants tested did not compute monthly tenant and subsidy rent portion accurately. Cause The Project failed to follow the policies and procedures which have been established for proper tenant file maintenance and determining tenant eligibility in accordance with HUD guidelines. Effect or Potential Effect The procedures for determining tenant security deposits and eligibility and maintaining tenant lease files were not consistently applied in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. 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 Context A sample of 10 tenant files from a population of 59 were selected. We identified exceptions in 1 out of the 10 files tested. The sample in not a statistically valid sample. Identification as a Repeat Finding This finding is not a repeat finding. Recommendation Management should establish procedures and monitor compliance with those procedures to ensure that tenant security deposits are correctly recorded, 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 administrationFinding Resolution Status: In-process Views of Responsible Officials Management has implemented a process for the Compliance Department to review all files using the HUD rules of calculation and accompanied with a calculation work sheet provided through the software. To ensure the accuracy of the calculations moving forward, review of the hourly rate, number of hours worked and pay frequency will be calculated to verify what is on the calculation worksheet to ensure the accuracy of the information submitted.