Finding 976894 (2022-006)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2024-06-10
Audit: 308469
Auditor: Cohnreznick LLP

AI Summary

  • Core Issue: The owner failed to provide proof to REAC that health and safety findings were resolved within the required 72 hours.
  • Impacted Requirements: This violates 24 CFR Section 200.857, which mandates timely responses to health and safety inspection findings.
  • Recommended Follow-Up: Management should ensure timely submission of proof to REAC for all health and safety findings to maintain compliance.

Finding Text

Finding No. 2022-006 HUD Low Income Housing Preservation and Resident Homeownership Act of 1990 Federal Assistance Listing Number #99.999 Uniform Guidance Compliance Requirement Code: N-Special Tests and Provisions Criteria Owner must respond with proof that any health and safety findings from a REAC inspection have been solved within 72 hours in accordance with 24 CFR Section 200.857 Paragraph ( c ). Condition The owner did not provide proof to REAC that all health and safety inspection findings were solved within 72 hours. Cause Management did not follow their procedures with respect to responding to REAC on all health and safety violations within 72 hours of the REAC inspection. Effect or Potential Effect Housing units may be out of compliance with HUD Quality Standards. Questioned Costs: Not applicable. Context In connection with the procedures applied to compliance testing there was one instance of the two properties tested where the REAC report tested contained health and safety findings and management did not provide proof to REAC timely showing that these were resolved. They provided proof to REAC on February 17, 2022, when they should have provided proof by January 27, 2022. Repeat Finding: No Recommendation Management should make sure that all findings are cleared in a timely manner and such correspondence with REAC occurs in a timely manner. Views of Responsible Officials REACH responded and resolved all Exigent Health & Safety within the 72 hour period , but did not submit the confirmation report until 5 business days after the review, REACH will retain evidence of same day repairs going forward to allow confirmation that the time frame was met.

Categories

Special Tests & Provisions HUD Housing Programs

Other Findings in this Audit

  • 400447 2022-001
    Significant Deficiency Repeat
  • 400448 2022-002
    Significant Deficiency
  • 400449 2022-003
    Significant Deficiency Repeat
  • 400450 2022-004
    Significant Deficiency Repeat
  • 400451 2022-005
    Significant Deficiency Repeat
  • 400452 2022-006
    Significant Deficiency
  • 400453 2022-007
    Significant Deficiency
  • 976889 2022-001
    Significant Deficiency Repeat
  • 976890 2022-002
    Significant Deficiency
  • 976891 2022-003
    Significant Deficiency Repeat
  • 976892 2022-004
    Significant Deficiency Repeat
  • 976893 2022-005
    Significant Deficiency Repeat
  • 976895 2022-007
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.218 Community Development Block Grants/entitlement Grants $1.76M
14.275 Housing Trust Fund $1.63M
99.999 Low Income Housing Preservation and Resident Homeownership Act of 1990-Capital Grant $964,955
21.027 Coronavirus State and Local Fiscal Recovery Funds $919,510
14.195 Section 8 Housing Assistance Payments Program $573,080
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $543,690
21.000 Section 607(e ) of the Neighborhood Reinvestment Corporation Act, As Amended $477,500
14.241 Housing Opportunities for Persons with Aids $380,000
14.239 Home Investment Partnerships Program $214,929
21.023 Emergency Rental Assistance Program $32,915