Finding 574011 (2024-002)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2024
Accepted
2025-08-20

AI Summary

  • Core Issue: Management did not follow the correct order for admitting applicants from the wait list.
  • Impacted Requirements: This violates HUD guidelines outlined in Handbook 4350.3 regarding proper admission and denial procedures.
  • Recommended Follow-Up: Establish clear procedures for wait list admissions and ensure all actions are documented to comply with HUD regulations.

Finding Text

Finding No. 2024-002; Federal Assistance Listing Number 14.157 Criteria In accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs, management is required to admit applicants in the proper order from the wait list and to document proper admission and denial procedures. Condition Management did not select applicants from the wait list in the correct order. Cause No procedures were in place to ensure that applicants were admitted in the proper order from the wait list. Effect or Potential Effect Tenants were not admitted in accordance with HUD guidelines. Context One out of one new tenant lease files tested did not appear on the waitlist and others were on list before this one new move-in. Repeat Finding No Questioned Costs N/A Recommendation Management should establish procedures to admit applicants in order of wait list priority and document all applicants admitted and denied in accordance with HUD guidelines. Auditor Noncompliance Code: R-Section 8 program administration. Finding Resolution Status: Unresolved Views of Responsible Officials and Planned Corrective Actions REACH has policies in place to admit applicants in the order of their waitlist priority. Management works with on-site property staff and provides training on the prioritization of wait list applicants. Management will continue to coordinate and provide assistance to on-site staff to ensure that the properties are in compliance with required regulations.

Corrective Action Plan

Federal Award Findings and Questioned Costs Item 2024-002 Name of Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for Persons with Disabilities (Section 811) Program Federal Assistance Listing: Number 14.157 Recommendation: Management should establish procedures to admit applicants in order of wait list priority and document all applicants admitted and denied in accordance with HUD guidelines. Action Taken: REACH has policies in place to admit applicants in the order of their waitlist priority. Management works with on-site property staff and provides training on the prioritization of wait list applicants. Management will continue to coordinate and provide assistance to on-site staff to ensure that the properties are in compliance with required regulations. Completion Date: June 30, 2025.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 574010 2024-001
    Significant Deficiency Repeat
  • 574012 2024-001
    Significant Deficiency Repeat
  • 574013 2024-002
    Significant Deficiency
  • 1150452 2024-001
    Significant Deficiency Repeat
  • 1150453 2024-002
    Significant Deficiency
  • 1150454 2024-001
    Significant Deficiency Repeat
  • 1150455 2024-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $110,230
14.239 Home Investment Partnerships Program $42,238