Finding 569015 (2024-003)

Finding No. 2024-003: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: Sixty-two tenants. Sample Size Information: Ten tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulations require: Verification of initial income through the use of EIV reports within 90 days of move-in; Annual unit inspections performed in a timely manner and the corresponding documentation maintained; Documentation of tenant security deposits and refunds to be maintained; Apartment applications stamped with date and time received; Lease addendums to be signed by tenants. Statement of Condition: Of the tenant files selected: One tenant file did not contain verification of the initial income through the use of EIV reports; An annual unit inspection report was not maintained for one tenant; A security deposit was documented on the lease and HUD form 50059 with no supporting documentation of the actual date and time deposit was collected; An application for housing was not marked with the date and time received for two tenants; Lease addendums were not signed by one tenant. Cause: The Project did not adhere to HUD regulations for initial eligibility and did not perform timely income verification. In addition, the Project did not follow the HUD regulations in relation to verification of tenant deposits. The Project also did not maintain appropriate tenant eligibility documentation as required by HUD Effect or Potential Effect: Unable to verify tenant eligibility and cost of assistance may be disallowed. Unable to determine date and time for the receipt of applications for proper waiting list placement and subsequent selection to occupy a unit. 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 Project should implement procedures to ensure all documentation related to applicants and tenants are properly executed and maintained, and that the manager verifies eligibility by obtaining all required documents for potential tenants while verifying and maintaining support for tenant income eligibility through the EIV system in a timely manner. 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.