Finding Text
Name of Federal Agency: Department of Housing and Urban Development
Federal Program Name: Project Based Rental Assistance (PBRA) - Section 8 Project-based Cluster
Assistance Listing Number: 14.195
Federal Award Identification Number and Year:
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:
2 out of 2 tenants tested did not have their information entered into the EIV system within 90 days of move-in.
2 out of 2 tenants tested did not have their initial certifications completed within 120 days of move-in.
Cause
Management's policies with respect to the determination of tenant security deposits and eligibility and the maintenance of tenant lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs were not consistently followed.
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. This could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD.
Recommendations
Management should establish procedures and monitor compliance with those procedures to insure 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 administration
Reporting Views of Responsible Officials
Management will review the HUD Handbook 4350.3 with staff to ensure compliance and provide follow up training of current company policies and procedures.