Finding Text
Criteria: Owners who participate in HUD’s rent subsidy program are responsible for accepting applications, determining eligibility, calculating the tenant's contribution toward rent and utilities, and calculating subsidy in accordance with HUD.
Conditions: During our testing of Tenant Eligibility for Southward Rosa, Unit#503, and Move-In Date 6/01/2021, the following documentation was missing from the tenant file for examination purposes:
1. Signed tenant application.
2. Acknowledgment of the resident's rights and responsibilities.
3. Citizenship Declaration.
4. Criminal and drug background checks as well as sex offender registration.
5. HUD model lease and addendums signed by tenant and management
6. Form HUD-50059 Owner’s Certificate of Compliance with HUD’s Tenant Eligibility and Rent Procedures to determine if the initial certification was completely correct and accurate.
7. Supporting documentation for the computation of the tenant’s contribution toward rent and utilities and the subsidized portion of the tenant’s monthly rent was properly calculated.
8. Six months of bank statements.
9. Supporting documentation for payment of security and 1st-month rent.
Effect: The Project was not in compliance with HUD’s rent subsidy program in the determination of tenant eligibility.
Cause: Due to the turnover of the Management Agent and Property Management Staff, there was a lack of internal control in tenant eligibility documentation.
Context: A sample of four tenant files was for Testing of Eligibility, in which one instance in which the majority of eligibility documentation was missing from the tenant file.
Recommendation: We recommend that the Project obtain all eligibility documentation missing from the tenant files.
Views of Responsible Officials and Corrective Action Plan: No disagreements with the audit finding.