Finding Text
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.