Finding 577757 (2023-001)

Criteria or Specific Requirement (including statutory, regulatory, or other citation) Per HUD's occupancy requirements (HUD Handbook 4350.3), the project owners are required to determine whether applicants are eligible to occupy the subsidized property and receive housing assistance. Eligibility is determined by federal statute and HUD regulation. Based on the eligibility requirements, project owners must maintain eligibility documentation in the tenant file. Condition During fiscal year ended June 30, 2023, several instances were noted where the Project failed to retain the following required eligibility documentation: verification of social security number, verification of income, disability status and birth certificate. Cause This noncompliance was the result of an administrative oversight, in which, the property management personnel did not consistently follow the Corporation's policies and procedures. Effect or Potential Effect Failure to obtain a required eligibility documentation can result in federal assistance to non-qualified individuals.