Finding Text
Finding 2023-001
Program
U.S. Department of Housing and Urban Development (HUD) – Supportive Housing for Persons
with Disabilities (Section 811) and Project Rental Assistance, Assistance Listing No. 14.181.
Condition
One tenant file was selected for testing. However, this tenant file could not be located. As a
result, the following documentation could not be located to determine eligibility, as required by
HUD regulations:
Form HUD-50059, Owner’s Certification of Compliance with HUD’s Tenant Eligibility and
Rent Procedures,
A completed and signed application,
A signed lease agreement, and
The move-in and move-out inspection forms.
Criteria
Tenant files and all required documents should be maintained as established by HUD
requirements.
Cause
There were no procedures in place to ensure that all tenant files were properly maintained.
Effect
Inadequate tenant file documentation has resulted in the Corporation’s inability to comply with
HUD regulations.
Recommendation
We recommend the Corporation to establish procedures for maintaining tenant files, including
all required documents, to comply with HUD requirements for verification of tenant information,
as required.
Reporting Views of Responsible Officials
Management agrees with the recommendation and the Corporation’s Board of Directors has
made the decision to change property managing agents effective January 1, 2024. It is
anticipated that the change to a new property managing agent will allow the Corporation to
establish procedures to ensure all tenant files are properly maintained to comply with HUD
regulations.