Finding Text
Finding 2023-001 Eligibility (Significant Deficiency and Noncompliance)
Information of the Federal Program: U.S. Department of Treasury CFDA No. 21.026 Homeowner
Assistance Fund
Criteria: Treasury established a number of requirements in this program to determine whether an
applicant is eligible to receive mortgage assistance. To be an eligible household: must be the
homeowners primary residence, they must currently occupy the residence, income must be below
150% of the area median income for the household, and experienced financial hardship due to the
pandemic.
Condition: The eligibility determination is made based on a collection of information and
documentation from the applicant. These files document their circumstances and determine the
amount awarded.
Context/Cause: We tested 53 households paid during the fiscal year. Of those 53, we noted 19
households with one or more exceptions, totaling 25 exceptions out of a total of 583 requirements
tested and summarized as follows:
6 instances in which an initial occupancy statement was obtained with the application
but occupancy was not confirmed prior to disbursement
3 instances in which the applicant is above the 150% area median income level
13 instances in which income was not properly documented or the calculation of
income by the underwriter was not correct
2 instances in which the monthly mortgage assistance awarded to households was
not properly supported
Questioned Costs: $31,755
Effect: The Authority was not in compliance with eligibility requirements.
Recommendation: We recommend the Authority strengthen its policies and procedures
surrounding eligibility determination to ensure compliance with federal requirements.
View of Responsible Officials: See Management’s review and Corrective Action Plan included at
the end of the report.