Finding 61621 (2022-001)

FINDING No. 2022-001: Section 207/223(f) Mortgage Insurance for the Refinance of Existing Multifamily Housing, CDFA 14.155 Finding Resolution Status: Unresolved. Information on Universe Population Size: Fifty-four tenants. Sample Size Information: Ten tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulations require the Project to conduct background checks on potential tenants prior to acceptance. HUD regulations also stipulate that all addendums to the lease must be signed and maintained as part of lease documentation. Statement of Condition: Of the tenant files selected, one tenant did not have a background check conducted prior to acceptance. Also, none of the files maintained a signed pet policy addenda as part of their lease documentation. Cause: The Project did not maintain appropriate tenant eligibility documentation required by HUD. New tenants were not required to sign the pet policy if there was no indication of owning a pet upon execution of the lease. Effect or Potential Effect: Unable to verify eligibility and cost of assistance may be disallowed. Auditor Non-Compliance Code: R ? Section 8 Program Administration. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendation will be adopted. Recommendation: The Project should implement procedures to ensure that required documentation is obtained prior to acceptance and maintained in the tenant files. Response Indicator: Agree. Completion Date: 12/31/2023 Response: Training has been conducted with current and new staff on proper applicant screening procedures and procedures for executing the Pet Policy Lease Addendum. Follow up will be done periodically to ensure procedures are followed and documents maintained in tenant files.