Finding Text
Department of Housing and Urban Development Finding No. 2022-001; Section 8 New Construction and Substantial Rehabilitation, Assistance Listing Number 14.182 Statement of Condition In connection with our lease file review, we noted the following deficiencies: The Enterprise Income Verification (EIV) form in the tenant's file for 2 out of 15 tenants tested did not have documentation in their lease file that their income was verified. The procedures applied to a sample of 1 out of 2 tenants tested did not have move out inspections in their lease files. The procedures applied to a sample of 1 out of 15 tenants tested did not have a signed HUD Form 50059 in their lease files. Cause Management's policies with respect to income verification, move out inspections, and the maintenance of tenant lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs were not consistently followed. Effect or Potential Effect The procedures for income verification, move out inspections, and the maintenance of tenant lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. This could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Criteria Tenant lease files are required to be maintained and tenant eligibility determined in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Recommendations Management should establish procedures and monitor compliance with those procedures to insure that tenant's income is properly verified and tenant lease files are being maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Auditor Noncompliance Code: R - Section 8 program administration Finding Resolution: In process Reporting Views of Responsible Officials The Organization agrees with the finding and management will implement and strengthen internal controls over compliance and tenant lease files.