Finding 596874 (2022-003)

-
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2023-04-10

AI Summary

  • Core Issue: Three applicants were skipped without proper documentation, violating HUD regulations on waiting list management.
  • Impacted Requirements: Failure to maintain a chronological waiting list and document reasons for applicant selection breaches compliance standards.
  • Recommended Follow-Up: Implement new procedures and conduct training to ensure proper documentation; compliance will perform random checks on waiting lists.

Finding Text

FINDING No. 2022-003: Section 236 Mortgage Restructuring Note, CFDA 14.103 Finding Resolution Status: Unresolved. Information on Universe Population Size: Eleven moved-in tenants. Sample Size Information: Two moved-in tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulations require the maintenance of a waiting list and the selection of applicants in chronological order of application date with adequate documentation of the reasoning for an applicant being passed over for an applicant with a later application date. Statement of Condition: Three applicants were passed over without maintaining and documenting a reason. Cause: The manager did not maintain appropriate documentation of the reasons for passing over applicants. Effect or Potential Effect: Unable to determine date and time for the receipt of applications for proper wait listing placement and subsequent selection to occupy a unit. 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 implement procedures to ensure appropriate documentation of the reasoning for passing over applicants. Response Indicator: Agree. Completion Date: 12/31/2023 Response: Training has been conducted with managers on proper waiting list procedures. Going forward compliance will be checking waiting lists at random to ensure appropriate documentation is entered on the waiting list if an applicant is passed over.

Categories

HUD Housing Programs Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.103 Interest Reduction Payments_rental and Cooperative Housing for Lower Income Families $1.37M
14.195 Section 8 Housing Assistance Payments Program $629,241
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $258,291