Finding 559256 (2024-001)

Finding No. 2024-001 Department of Housing and Urban Development Federal Assistance Listing Number 14.157 Supportive Housing for the Elderly (Section 202) Criteria Management is responsible for determining tenant eligibility and maintaining lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Condition The Project did not perform a review of the Enterprise Income Verification ("EIV") system within 90 days of the tenant moving into the Project. Cause Policies and procedures, which have been established for proper tenant file maintenance and determining tenant eligibility in accordance with HUD guidelines, were not followed. 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 Context A noncompliance was found in the one move in that was tested. Identification as a Repeat Finding This is a repeat finding of 2023-002. Recommendation Management should monitor compliance with established procedures to ensure the determination of tenant eligibility and the maintenance of lease files are in accordance with guidelines specified by HUD. Auditor Noncompliance Code: Z - Other Finding Resolution Status: In process Views of Responsible Officials and Planned Corrective Actions There have been multiple users (Property Managers) assigned to the Enterprise Income Verification System ("EIV") to prevent a repeat of this occurrence going forward.