Finding 584362 (2023-003)

Criteria Management is responsible for 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 tenants that moved out of the Project during the year, we noted one instance were the Project did not have a move-out inspection form in the lease file. Cause Management's policies with respect to the determination of tenant security deposits and eligibility and 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 The procedures for determining tenant security deposits and eligibility and maintaining tenant lease files were not consistently applied in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. This could result in disagreements with tenants regarding unit damages and the amount of security deposit refunded. Questioned Costs None Recommendation Management should monitor compliance with those procedures to ensure that tenant lease files are in accordance with the 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 tenant files at the time of a tenant move out to ensure proper documentation is retained in the tenant file.