Finding Text
Department of Housing and Urban Development Finding 2022-001 Section 202 Supportive Housing for the Elderly, AL 14.157 Statement of Condition The Project management was unable to provide a copy of the HUD approved management agent certification (HUD Form 9839) in effect for the period November 12, 2021 to May 10, 2022 (day before sale). Criteria HUD management agent certifications are required to be submitted to and approved by HUD. Cause The procedures in place to ensure that documentation of HUD approval of the management agent was retained were not followed. Effect or Potential Effect The management agent may not have been approved by HUD to provide services to the Organization. Questioned Costs None Recommendation The property obtained a HUD-approved management agent certification effective upon sale of the property on May 11, 2022. Additionally, the management company has prior HUD approval for other entities, and no management fees were paid to the new management agent during the audit period. Auditor Noncompliance Code: Z - Other (REAC); N - Special Tests and Provisions (UG) Finding Resolution Status: Resolved Reporting Views of Responsible Officials The Organization agrees with the finding and notes that the property has transitioned to a new owner with a HUD-approved management agent certification.