SOUTHVIEW APARTMENTS HOUSING CORPORATIONNon-Profit

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING NO. 2021-003: Section 811, CFDA 14.181 Condition: The annual verification and recertification of tenant income for some tenants were delayed during the year ended September 30, 2021. Criteria: The regulatory agreement requires verification and recertification of tenant income on an annual basis. Effect: The tenant may not have been paying rent commensurate with their ability to pay. Context: The annual verification and recertification of tenant income for some tenants was not performed by the time their lease was renewed. Cause: Management had issues communicating with the HUD project manager, and there were issues with some of the tenants completing and submitting their information for recertification. Recommendation: Management should start the process earlier with the tenants having issues completing and submitting their information and should contact the HUD project manager?s supervisor as soon as communication issues arise. Views of Responsible Officials and Planned Corrective Actions: The Assistant Director of Administration will be more proactive with the process of recertifying tenants. Management of Southview Apartments Housing Corporation agrees with the finding, and the auditors? recommendations have been adopted.

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING NO. 2021-004: Section 811, CFDA 14.181 Condition: Management made only six of the required twelve deposits to the replacement reserve during the year ended September 30, 2021. Criteria: The regulatory agreement requires twelve monthly deposits to the replacement reserve each year. Effect: The replacement reserve was underfunded. Context: Some monthly deposits to the replacement reserve were not made during the year. Cause: Delays in HUD funding of six monthly HAP vouchers caused a lack of funds available for the monthly deposits. Recommendation: Management should ensure twelve monthly deposits are made to the replacement reserve each year. Views of Responsible Officials and Planned Corrective Actions: Management will ensure monthly payments are made to the replacement reserve. Management of Southview Apartments Housing Corporation agrees with the finding, and the auditors' recommendations have been adopted.

SOUTHVIEW APARTMENTS HOUSING CORPORATION HUD PROJECT NO. 084-HD038-WDD SCHEDULE OF FINDINGS AND QUESTIONED COSTS - Continued For the Year Ended September 30, 2020 Section III - Federal Award Findings DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING NO. 2020-001: Section 811, CFDA 14.181 Condition: The annual verification and recertification of tenant income for some tenants were delayed during the year ended September 30, 2020. Criteria: The regulatory agreement requires verification and recertification of tenant income on an annual basis. Effect: The tenant may not have been paying rent commensurate with their ability to pay. Context: The annual verification and recertification of tenant income for some tenants was not performed by the time their lease was renewed. Cause: Management was unable to obtain access to the EIV system to perform the recertifications after the previous director of administration left the Organization. It took months to obtain access due to the COVID-19 pandemic and the inability to acquire an EIV system ID and password from the Real Estate Assessment Center. Recommendation: Management should obtain EIV system IDs for two people in the Organization. Views of Responsible Officials and Planned Corrective Actions: The Executive Director will obtain an EIV system ID to increase the number of IDs at the Organization to two. Management of Southview Apartments Housing Corporation agrees with the finding and the auditors? recommendations have been adopted.