Finding Text
Finding reference number: 2020-003
Assistance Listing title and number (Federal award identification number and year): Section 8 new construction and substantial rehabilitation Assistance Listing No. 14.182 (NJ39H085044 and 1979)
Auditor non-compliance code: R – Section 8 Program Administration
Finding resolution status: In process
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size information is not applicable to the finding.
Statistically valid sample: No
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: N/A
Statement of Condition 2020-003 (Assistance Listing No. 14.182): During the year ended December 31, 2020, 7 of the applicants selected for waitlist testing under the HUD Consolidated Audit Guide lacked proper documentation for tenant selection.
Criteria: In accordance with the Housing Assistance Payments Contract and HUD Handbook 4350.3, the Property must select applicants in a systematic fashion from a waitlist for tenant selection.
Effect: The Property is not in compliance with the terms of the Housing Assistance Payments Contract or HUD Handbook 4350.3. Applicants could have selected ineligible applicants for tenant selection over eligible applicants.
Cause: The on-site property manager was not properly maintaining the waitlist per HUD standards.
Recommendation: The Management Agent should ensure that all applicants are properly documented on the waitlist.
Completion date: In process
Management Response: Agree. The Management Agent will review and update, if necessary, its procedures to ensure waitlist is in compliance with HUD Handbook 4530.3.