Finding Text
Tenant Files Condition: Recertification: 1. In two (2) instances out of fifteen (15) tenant files tested, the EIV was not maintained in the tenant?s file; therefore, income could not be properly verified. 2. In fifteen (15) instances out of fifteen (15) tenant files tested, the inspection report was not signed by the tenant or management. There only a printed form maintained in the tenant?s file. Move-outs: 1. In one (1) instance out of three (3) tenant files tested, the security deposit was not refunded within the 30 day timeframe. Criteria: HUD 4350.3 REV-1, Change 4, Ch. 6: 6-29.A. Owners perform unit inspections on at least an annual basis to determine whether the appliances and equipment in the unit are functioning properly and to assess whether a component needs to be repaired or replaced. This is also an opportunity to determine any damage to the unit caused by the tenant's abuse or negligence and, if so, make the necessary repairs and bill the tenant for the cost of the repairs. HUD 4350.3 REV-1, Change 4, Ch. 9, 9-8 B. Owners must: 1. Develop policies and procedures for staff to follow for using the EIV Income reports and remaining Verification Reports HUD 4350.3, REV-1, Change 4, Ch. 9, 9-11: D.1.c. New Hires Report (1) Owners must use this report at least quarterly to determine if any of their tenants have started new employment whereby the tenant has not reported a change in income to the owner between recertification and/or the new employment was not reported at the time of recertification. HUD Handbook 4350.3, REV-1, Change 4, Ch 6 6-18 C. Within 30 days after the move-out date (or shorter time if required by state and/or local laws), the owner must either: 1. Refund the full security deposit plus accrued interest to a tenant that does not owe any amounts under the lease; or 2. Provide the tenant with an itemized list of any unpaid rent, damages to the unit, and an estimated cost for repair, along with a statement of the tenant?s rights under state and local laws. Effect: The tenant files were not always in compliance with the guidelines established by the Department of Housing and Urban Development. Cause: Required documents were not always maintained in the tenant file, in addition to being properly authorized by the tenant and/or owner. Context: Tenant files tested consisted of move-ins, recertifications and move-outs. Population Size Number: 50 Tenants Files. Dollar Amount: $ 541,145. Sample Number: 25 Tenants Files. Dollar Amount: $ 270,562. Items Not in Compliance Number: 16 Tenant Files. Dollar Amount: $ 10,864. Questioned Costs There was no questioned costs. Recommendation: In order to be in compliance with guidelines established by the Department of Housing and Urban Development, I recommend that Windham Housing Corporation should verify the tenant?s income via EIV, during the recertification process and perform inspections, during the recertification process in accordance with guidelines established by the Department of Housing and Urban Development. In addition, security deposits should be refunded with interest, within 30-day after the effective move-out date. By performing these procedures, the risk of incurring questioned costs will be significantly reduced. Views of Responsible Officials and Planned Corrective Actions: Corrected going forward.