Finding Text
FINDING No. 2023-002: Section 207/223(f) Mortgage Insurance for the Refinancing
of Existing Multifamily Housing Projects, ALN 14.155
Finding Resolution Status: Unresolved.
Information on Universe
Population Size:
Fifty-six tenants.
Sample Size Information: Ten tenants.
Identification of Repeat Finding
and Finding Reference Number:
Yes, finding 2022-002.
Criteria: HUD regulations require proper maintenance of tenant files
including:
• Apartment application that is signed and dated by
management;
• Documentation of tenant security deposit collection;
• Evidence that tenants are age 62 or disabled upon
move in;
• Electronic Income Verification (EIV) performed within 90
days after the move-in information is transmitted to
Tenant Rental Assistance Certification System
(TRACS) to confirm/validate the income reported by the
household.
Statement of Condition: • Applications were not signed and dated upon receipt by
the manager for four tenants.
• The Project did not maintain documentation of security
deposits for five tenants.
• The Project did not maintain evidence that a tenant
under the age of 62 was disabled upon move in and a
total of $3,260 of disallowed HAP was collected.
• The Project did not obtain income verification via EIV
within 90 days after move-in for eight tenants.
Cause: The Project did not maintain appropriate tenant eligibility
documentation required by HUD did not perform timely income
verification. Effect or Potential Effect Unable to determine date and time for the receipt of the
application for proper waiting list placement and subsequent
selection to occupy a unit. In addition, unable to verify the cost
of assistance and residency may be disallowed.
Auditor Non-Compliance Code: R – Section 8 Program Administration.
Reporting Views of Responsible
Officials:
The Project agrees with the finding and the auditor’s
recommendation will be adopted.
Recommendation: The Project should maintain all required tenant documentation
including proper signatures on applications, support for security
deposit collections, evidence that tenants meet the age or
disability requirements, and verification of tenant income
through the EIV system.
Response Indicator: Agree.
Completion Date: 6/30/2024
Response: The compliance department will provide additional training with
the manager on screening policies and procedures. Compliance
will also conduct periodic file reviews ensuring screenings were
performed and that a copy of the report was put into the tenant
file.