Finding 2024-001
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Titles: Public and Indian Housing Program
Federal Assistance Listing Numbers 14.850
Noncompliance – N. Special Tests and Provisions - Recording of Declarations of Trust/Declaration of
Restrictive Covenants Against Public Housing Property
Non Compliance Material to the Financial Statements: No
Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions
Findings – Federal Award Program Audit (continued)
Finding 2024-001 (continued)
Criteria: A current Declaration of Trust ("DOT"), in a form acceptable to HUD, must be recorded against all public housing property owned by PHAs (or private entities for public housing developed under 24 CFR Part 905, Subpart F) that has been acquired, developed, maintained, or assisted with funds from the US Housing Act of 1937. A DOT is a legal instrument that grants HUD an interest in public housing property.
Condition: Based upon inspection of the Authority’s files and on discussion with management, there were
properties that the Authority owns and insures that did not have DOTs on file during the time of audit.
Context: The Authority owns three (3) public housing properties. During the audit, it was noted that three
(3) out of three (3) public housing properties did not have DOTs on file.
Cause: There is a significant deficiency in internal controls over the compliance for the special tests and
provisions type of compliance related to the recording of DOTs against public housing property. The
Authority has not properly filed DOTs in compliance with program requirements.
Effect: The Public and Indian Housing Program is in non-compliance with the special tests and provisions
type of compliance related to the recording of DOTs against public housing property.
Recommendation: We recommend that the Authority files proper DOTs on the public housing properties.
Views of responsible officials and planned corrective action: The Authority accepts the recommendation of the auditor and will ensure all necessary DOTs are recorded. Ivy Melendez, Executive Director, will be responsible to implement this corrective action by September 30, 2025.