Finding 976678 (2023-001)

Type of Finding – Federal Award Finding Finding Resolution Status – Resolved Identification of Repeat Finding and Finding Reference Number – Finding Number 2022-001 - CFDA 14.181 - Supportive Housing for Persons with Disabilities (Section 811) Criteria or Specific Condition – The owner is responsible for annually reexamining incomes of households occupying assisted units and make appropriate adjustments to the tenant payment and the project rental assistance payment (24 CFR section 891.410). Statement of Condition – Annual recertification of existing tenants were not completed in a timely manner for 13 out of 22 units during 2023. Cause – The annual recertification was not done in a timely manner due to lack of staffing at the property management company. Effect or Potential Effect – The Project is not in compliance with the regulatory requirements. Auditor Non-Compliance Code – Z – Eligibility Questioned Costs – None Reporting View of Responsible Officials – We concur with the auditor’s recommendation. Recommendation – The Project should complete the recertification process for the tenants in a timely manner. Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations – Agree Response Indicator – Agree Completion Date – December 31, 2023 Response – In February 2023, Cascade Management hired a compliance specialist and resumed the recertification processes. The late recertifications for 2023 were completed and processed for payment prior to December 31, 2023. The tenant recertifications will be monitored by the owner to ensure they are being completed in a timely manner.