Finding Text
Finding No. 2024-005; Federal Assistance Listing Number 14.157
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
During the procedures applied to a sample of one tenant lease file, we noted the following
instances of noncompliance with HUD regulations regarding tenant eligibility and the
maintenance of lease files. There was one instance where the project did not maintain move out
inspection form in the lease file.
Cause
The project failed to follow the policies and procedures which have been established for proper
tenant file maintenance and determining tenant eligibility in accordance with HUD guidelines
Effect or Potential Effect
Noncompliance with HUD guidelines could result in units being rented to ineligible tenants or
errors in the rent subsidies paid by HUD.
Questioned Costs
N/A
Context
In connection with the procedures applied to tenant file testing there was one instance of the
one file tested where the move out inspection was not performed.
Identification as a Repeat Finding
Yes: 2023-003
Recommendation
Management should establish procedures and monitor compliance with those procedures to
ensure that the determination of tenant eligibility and the maintenance of lease files are in
accordance with guidelines specified by HUD.
Auditor Noncompliance Code: E - Eligibility Uniform Guidance
Finding Resolution Status: Resolved
Views of Responsible Officials and Planned Corrective Actions:
REACH has policies in place to ensure that move out inspections are done in a timely manner.
Staffing shortages at the property had an impact on the timeliness of the move out. As new staff
are brought onboard training is provided and training is provided to on-site staff to ensure that
the inspections are being completed and properties are in compliance. Management will
continue to coordinate and provide assistance to on-site staff to ensure that the properties are in
compliance.