Finding 584361 (2023-002)

Finding No. 2023-002; Mortgage Insurance - Rental Housing, Assistance Listing 14.134 Criteria Management is responsible for determining tenant eligibility and maintaining lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Housing Programs. Condition During the procedures applied to a sample of one tenant lease file of new tenants, we noted one instance where the Project did not maintain evidence in the lease file that the Enterprise Income Verification ("EIV") system was utilized within 90 days of the tenant's move in certification. Cause Management's policies with respect to the maintenance of tenant lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Programs were not consistently followed. Effect or Potential Effect Noncompliance with HUD guidelines could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Questioned Costs None Recommendation Management should monitor compliance with those procedures to ensure that the determination of tenant eligibility and the maintenance of lease files are in accordance with requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Programs. Auditor Noncompliance Code: R - Section 8 program administration Finding Resolution Status: In Process Views of Responsible Officials Management will review all tenant files before lease signing and after annual recertifications to ensure proper procedure were completed and documented in each tenant file.