Finding Text
FINDING No. 2023-001: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, ALN 14.155
Finding Resolution Status: Unresolved.
Information on Universe Population Size:
One hundred eighteen tenants.
Sample Size Information: Twenty tenants.
Identification of Repeat Finding and Finding Reference Number:
No.
Criteria: HUD regulation requires the following be performed in a timely manner and corresponding documentation maintained:
• Annual unit inspections.
• Apartment applications stamped with date and time received.
• Verification of initial income through the use of Enterprise Income Verification (EIV) performed within 90 days of the tenant being entered into Tenant Rental Assistance Certification System (TRACS)
• Verification of initial income through third-party verification documentation.
Statement of Condition: The Project did not:
• Perform an annual unit inspection for one tenant.
• Mark the application for housing with the date and time received for one tenant.
• Review the initial EIV within 90 days after transmission of move-in certification to TRACS for two tenants.
• Obtain and/or maintain third party verification of initial income for one tenant.
Cause: The Project did not maintain appropriate tenant eligibility documentation as required by HUD.
Effect or Potential Effect: Unable to verify tenant eligibility and cost of assistance residency may be disallowed. Unable to determine and assess whether the property has sustained any damages.
Auditor Non-Compliance Code: R – Section 8 Program Administration.
Reporting Views of Responsible Officials:
The Project agrees with the finding and the auditor’s recommendations will be adopted.
Recommendation: The Project should implement procedures to ensure initial tenant income through EIV system and third-party documentation are verified in a timely manner, annual unit inspections are performed, and all required tenant documentation is complete and accurate.
Response Indicator: Agree.
Completion Date: 06/30/2024
Response: Monthly reminders are being sent to all managers to run their EIV reports for the month. In addition, random files are being reviewed by compliance to ensure EIV reports are pulled, unit inspections performed, and required documentation is complete and accurate.