Finding Text
Finding No. 2022-001; Federal Assistance Listing Number 14.181 Statement of Condition In connection with our lease file review, we noted that: 1. One out of two tenants recertifications was not performed timely; and 2. One out of two tenants recertifications was not signed by the agent. Criteria Tenant lease files are required to be maintained and tenant eligibility determined in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Cause Management's policies with respect to recertifications and eligibility and the maintenance of tenant lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs were not consistently followed. Effect or Potential Effect The procedures for determining tenant recertification eligibility and maintaining tenant lease files were not consistently applied in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. This could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Questioned Costs N/A Context One of two tenants tested did not have a timely recertification performed and one of two tenants' recertifications were not signed by the agent. Repeat Finding Yes Recommendations Management should establish procedures and monitor compliance with those procedures to insure that recertifications are performed timely and signed, tenant eligibility is correctly determined and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Auditor Noncompliance Code: E-Eligibility; R-Section 8 Program Administration Findings Resolution Status: Unresolved Views of Responsible Officials and Planned Corrective Action: We will issue continuous communication to tenants to seek compliance. REACH continues to employ a compliance team to review files and provide support and training to property management staff on income verification and signing and filing of documents. This is an area of continuous improvement. When errors or missing items are identified, they are being corrected and impact of noncompliance communicated to tenant.