Finding 59220 (2022-001)

FINDING No. 2022-001: Section 202 Supportive Housing for the Elderly, CFDA 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: Total assistance revenue. Sample Size Information: All monthly PRAC requests. Identification of Repeat Finding and Finding Reference Number: Yes, 2021-001. Criteria: As required by HUD regulations, applications for renewal of PRAC contracts must be completed 120 days prior to the PRAC expiration date and any changes to rents, utility allowance, etc. must be applied to the tenants HUD - 50059 form as of the effective date upon execution of the contract renewal. Statement of Condition: The Project did not complete the renewal process 120 days prior to the PRAC expiration date and of the tenant files selected, none had a HUD-50059 reflecting the gross rent change effective November 1, 2022. Cause: The Project did not follow HUD regulations for a timely contract renewal resulting in the delay of HUD funding and did not implement the gross rent change effective November 1, 2022. Effect or Potential Effect: The Project is not in compliance with HUD regulations for timely renewal of PRAC contract resulting in delayed receipt of HAP funds and did not receive the appropriate amount of utility allowance. Auditor Non-Compliance Code: R ? Section 8 Program Administration Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations will be adopted. Recommendation: The Project should comply with HUD regulations for timely renewal of the PRAC contract to ensure no interruption in funding and establish procedures to ensure the Project implements approved rent changes on the effective date approved by HUD. Response Indicator: Agree. Completion Date: 12/31/2023 Response: All new staff now receives additional training on HUD guidelines. In addition, management is implementing a monitoring software to assist in ensuring timely submissions.