Finding 564420 (2024-001)

FINDING No. 2024-001: Project Based Rental Assistance Program, ALN 14.195 Finding Resolution Status: Unresolved. Information on Universe Population Size: One hundred and seventy-two tenants. Total assistance revenue. Sample Size Information: Twenty tenants. All monthly HAP requests. Identification of Repeat Finding and Finding Reference Number: Yes, 2023-001. Criteria: HUD regulations require all initial and ongoing tenant eligibility documentation to be appropriately executed and maintained. Additionally, HUD requires timely verification of the tenant’s current income through the use of Enterprise Income Verification (EIV) reports. As required by HUD regulations, annual recertification should be submitted in a timely manner to the regional HUD field office. Statement of Condition: Missing documentation in tenant files: • Thirteen tenant files were missing the initial EIV reports. • Three tenants files had tenant signed HUD-50059 forms signed by the tenant after the move in date. • Seven tenant files did not have an application stamp on the application for housing. • One tenant file was missing the application for housing form. • Two tenant files were missing the house rules. • One tenant file was missing the pet policy. • One tenant file was missing the bed bug policy. • Two tenant files had no tenant signatures on the pet policy. • Seven tenant files did not have the annual unit inspection dated. • One tenant file was missing the move in unit inspection. • Nine tenant files did not have the move in unit inspection dated. In addition, the Project requested rental assistance for tenants with expired annual certifications in TRACS. Cause: The manager did not perform and/or maintain appropriate tenant eligibility documentation in accordance with HUD requirements. Effect or Potential Effect: Improper maintenance of tenant files and not verifying tenant eligibility in accordance with HUD requirements can result in the cost of assistance and residency being disallowed. In addition, unable to determine date and time for the receipt of applications for proper waiting list placement and subsequent selection to occupy a unit. Furthermore, the Project is not in compliance with certain tenant requirements for submitting timely recertifications to the regional HUD field office resulting in withheld rental assistance. Auditor Non-Compliance Code: R – Section 8 Program Administration Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations will be adopted. Recommendation: The manager should verify eligibility by obtaining and maintaining all required documents for all tenants, maintain support for tenant income verification through the EIV system in a timely manner, and perform appropriate unit inspections. Furthermore, annual recertifications should be performed prior to expirations and transmitted to HUD through TRACS. Response Indicator: Agree Completion Date: 9/30/2025 Response: Staff training has been provided with additional HUD training inclusive of EIV reporting and tenant file maintenance and included in monthly reporting procedures.