Finding Text
Finding 2023-001 Lack of Approval of Management Agent
Assistance Listing Number 14.155 - Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Projects
Statement of Condition
The project has not obtained a HUD-approved management agent certification (HUD Form 9839) as of June 30, 2023.
Criteria
HUD management agent certifications are required to be submitted to and approved by HUD.
Cause
The procedures in place to ensure that HUD approval is obtained, when necessary, were not followed.
Effect or Potential Effect
The management agent has not been approved by HUD to provide services to the Organization.
Questioned Costs
$110,492.
Identification as a Repeat Finding
No.
Recommendation
The Organization should submit HUD Form 9839 in order to obtain approval of the management agent.
Auditor Noncompliance Code
Z - Other
Finding Resolution Status
In Process.
View of responsible officials:
Management is in the process of submitting HUD Form 9839 for approval.