Finding 571349 (2024-001)

U.S. Department of Housing and Urban Development Supportive Housing for Persons with Disabilities (Section 811) Program Finding No. 2024-001; Federal Assistance Listing Number 14.181 Criteria Management is responsible for determining tenant eligibility and maintaining lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Condition In connection with our lease file review, we noted that one out of two tenants' recertification was not performed timely. Cause Management's policies with respect to recertifications 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 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. Questioned Costs N/A Context One out of two tenants' recertifications was not performed timely. Identification as a Repeat Finding Yes; 2023-001 Recommendation Management should establish procedures and monitor compliance with those procedures to insure that recertifications are performed timely and signed, 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: E-Eligibility for Uniform Guidance; R-Section 8 Program Administration for REAC Findings Resolution Status: Not resolved Views of Responsible Officials and Planned Corrective Action: Management reviewed the AR in question and confirmed that all documentation, including EIV, was performed and obtained in January 2024. The 50059 was not signed until 3/13/24 for a 3/1/24 effective date because the tenant was unavailable due to sickness. Property staff were reminded it is REACH policy to receive all documentation and signatures by the effective date to be considered complete.