Finding Text
Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: U. S. Department of Housing and Urban Development Supportive Housing for the Elderly Assistance Listing #: 14.157 Contract Number: TX24-T841006 Contract Year: 07/01/21 ? 06/30/22 Section 8 Rental Voucher Program Assistance Listing #: 14.855 Contract Number: TX24-T841006 Contract Year: 07/01/21 ? 06/30/22 Criteria: Special Tests and Provisions ? Under the terms of the Living Centers? Section 8 Housing Assistance Payment agreement with the U. S. Department of Housing and Urban Development (HUD), 39 of 40 units in the apartment project are available for federal subsidy. One unit was originally used as the manager unit. Condition and context: The Living Centers requested and received subsidy payments for one unit that was unavailable for subsidy. The error was identified after three month?s subsidy was received and was deducted from the following month?s subsidy payment from HUD. Cause: In the initial years of the agreement, one unit was intentionally left offline to be used as the manager unit. In subsequent years, the unit was no longer used in this manner and existing management was not aware that subsidy was not available for the unit. Effect: Living Center received improper subsidy payments of $1,766, which were later reimbursed to HUD through reduction of subsequent month?s subsidy payment. Questioned costs: None after reimbursement. Recommendation: Strengthen policies regarding understanding of contract terms. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.