Finding Text
Finding No. 2024-003; Federal Assistance Listing Number 14.239
Criteria
During the period of affordability (i.e., the period for which the nonfederal entity must maintain
subsidized housing) for HOME assisted rental housing, the participating jurisdiction must
perform on-site inspections to determine compliance with property standards and verify the
information submitted by the owners no less than (a) every three years for projects containing
one to four units, (b) every two years for projects containing five to 25 units, and (c) every year
for projects containing 26 or more units. The participating jurisdiction must perform on-site
inspections of rental housing occupied by tenants receiving HOME/HOME-ARP-assisted tenantbased
rental assistance to determine compliance with housing quality standards (24 CFR
sections 92.209(i), 92.251(f), and 92.504(d)).
Condition
The owner did not ensure passing HQS inspections were performed in 2024.
Cause
Management did not have in place proper procedures and controls to ensure that HQS
inspections were performed during the year ended December 31, 2024.
Effect or Potential Effect
Housing units may be out of compliance with HUD Quality Standards.
Questioned Costs
N/A
Context
In connection with the procedures applied to tenant file testing there were 3 instances of the 3
files tested where the passing HQS inspections were not performed during the year ended
Identification as a Repeat Finding
Yes: 2023-004
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: N-Special tests and provisions for Uniform Guidance
Finding Resolution Status: Unresolved
Views of Responsible Officials and Planned Corrective Actions:
REACH has policies in place to ensure that HQS inspections are done in a timely manner.
Staffing shortages at the Property had an impact on the completion of HQS inspections in 2024.
As new staff are brought onboard training is provided and management will continue to
coordinate and provide assistance to on-site staff to ensure that the inspections are being
completed and properties are in compliance.