Core Issue: Annual housing inspections required by HUD were not conducted in 2024.
Impacted Requirements: Compliance with 24 CFR 5.705(c) for HUD housing inspections is at risk.
Recommended Follow-Up: Grasslands Housing, Inc. should establish procedures to ensure timely inspections and complete documentation.
Finding Text
Housing Inspections
Federal Program Information:
Funding agency: U.S. Department of Housing and Urban Development
Title: Mortgage Insurance for the Purchase or Refinancing of Existing Multi
Family Housing Projects
AL number: 14.155
Criteria or Specific Requirement: In accordance with 24 CFR 5.705(c), inspection of U.S.
Department of Housing and Urban Development (HUD) housing must be performed annually.
Condition: Internal controls over tenant files doe not appear to be effective. Testing procedures
revealed inspections were not performed in 2024.
Questioned Costs: None
Effect: The lack of inspections to support compliance with HUD's inspection requirements may
increase the risk of HUD withholding assistance if the units do not meet the housing quality
standards set by HUD.
Cause: Individuals responsible for reviewing tenant files did not ensure tenant inspections were
current and in compliance with HUD inspection requirements.
Auditor's Recommendation: We recommend Grasslands Housing, Inc. implement procedures or
processes to ensure all required documentation is included in the file and that all annual updates
to the files are made timely.
View of Responsible Officials: Management agrees and has prepared a correction action plan.
Corrective Action Plan
Management agrees with the finding and has prepared a corrective action plan to complete these annually.
Categories
HUD Housing ProgramsProcurement, Suspension & DebarmentInternal Control / Segregation of Duties