Finding Text
Questioned Cost: $0 Criteria ? Units that became available during the year were not rented to the required percentage of tenants with extremely low income. Condition ? HUD Section 8 requires at least 40% of the units that become available in the fiscal year be offered to extremely low-income tenants. If the units were actively marketed and the project was unable to achieve the 40% target, the units can be rented to other eligible tenants. During the 15-month period ended December 31, 2022, there were seven units that became available and only one was rented to an extremely low-income tenant. Evidence of proper marketing could not be produced justifying that the lower than 40% could be obtained. Cause ? The entity switched management companies during the year and prior to the new management company the tenant selection plan was inconsistently followed causing this finding. Effects or Potential Effects ? The project did not meet the HUD Section 8 housing requirements. Auditor?s Recommendation ? Resident selection plan should be reviewed and consistently followed. View of Responsible Officials ? Management agrees with the finding and has implemented a corrective action plan.