Finding Text
Finding No. 2022-001 U.S. Department of the Treasury, Community Development Financial Institutions Fund Federal Assistance Listing Number #21.011 Capital Magnet Fund - Compliance Requirement: E - Eligibility Criteria 2016 Capital Magnet Fund Assistance Agreement Section 5.2(b) Rental Affordability Qualifications: Project-level targeted income requires at least 20% of all rental units in each project to be occupied by tenants at or below 50% of Area Median Income (?AMI?). Condition The internal controls over tracking the income limitation on one of the six properties tested was not consistently followed. Cause One of the six properties tested had tenants certified by a housing authority, so management followed alternate procedures on tracking income. Effect or Potential Effect Project-level targeted income of at least 20% units occupied by tenants at or below 50% of AMI may be below the requirement. Questioned Costs: Not applicable. Context In connection with the procedures applied to a sample of six projects, one project?s income verification process followed alternate procedures which could result in error. Repeat Finding: No Recommendation For the project which followed an alternate process, management should follow the same procedures utilizing Yardi that they follow on the other projects. Management should input the income restrictions into Yardi and should also input the annual tenant income data into Yardi for this project.