Finding 614903 (2022-001)

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Requirement
P
Questioned Costs
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Year
2022
Accepted
2023-07-11
Audit: 30387
Organization: Alberto E. Sanchez Project (PR)
Auditor: Jlm & CO LLP

AI Summary

  • High Vacancy Losses: Vacancy losses increased by $92,164 in FY 2022, now at $168,241, which is 7.26% of gross potential income.
  • Compliance Issue: Management is not following the Affirmative Fair Housing Marketing Plan due to failure to rehabilitate 13 units as per the HUD agreement.
  • Action Needed: Management should prioritize completing the unit rehabilitation to improve cash flow and reduce vacancy losses.

Finding Text

Finding No. 2022-001 1. CONDITION ? Vacancy losses is extremely high when compared to last year vacancy losses. Vacancy losses increased in fiscal year 2022 by $92,164, from $76,077 to $168,241, representing a 7.26% of gross potential income. 2. CRITERIA ? Management Agent is not in compliance with the Affirmative Fair Housing Marketing Plan since they undersigned Voluntary Compliance Agreement with HUD, No. 02-20-5450-8, that requires the rehabilitation of thirteen (13) units identified in the agreement. 3. EFFECT ? Negative impact in cash flows to the Project. 4. CAUSE ? Units in the Voluntary Compliance Agreement are not available to be rent to new tenants. 5. QUESTIONED COST ? Loss of tenant?s revenues in the amount of $92,164. 6. RECOMMENDATION ? Management Agent should complete the unit?s rehabilitation as soon as possible.

Categories

HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.195 Section 8 Housing Assistance Payments Program $2.01M
14.195 Supplemental Assistance Covid 19 $1,728