Robertson Hill Apartments, Inc. 053-HD245

Finding 2024-001: U.S. Department of Housing and Urban Development, Supportive Housing for Persons with Disabilities (Section 811) Statement of Condition: During the year ending June 30, 2024, required annual tenant recertifications were not conducted. Criteria: According to HUD Handbook 4350.3, tenants are required to be recertified annually to ensure they still meet program requirements. The recertification process ensures that tenant's income and family composition are verified annually to determine continued eligibility for assistance and to adjust rent payments accordingly. Effect: Noncompliance with HUD regulations and potential errors in rental assistance, as well as the suspension of subsidy payments by HUD. Cause: Management oversight. Context: The population size is 9 tenants. Per our testing, one of the tenant recertifications had not been performed. Questioned Costs: $0 Recommendation: We recommend that management ensure the required recertifications are performed annually. Views of Responsible Officials and Corrective Action Plan: Management has hired additional employees to fully staff the leasing department. Management will ensure that all required recertifications are performed going forward.

ROBERTSON HILL APARTMENTS, INC. Raleigh, North Carolina CORRECTIVE ACTION PLAN March 25, 2025 U. S. Department of Housing and Urban Development Five Points Plaza Building 40 Marietta Street Atlanta, Georgia 30303-2806 Robertson Hill Apartments, Inc. respectfully submits the following Corrective Action Plan for the year ended June 30, 2024. Bernard Robinson & Company, L.L.P. 1501 Highwoods Blvd., Suite 300 Post Office Box 19608 Greensboro, North Carolina 27419-9608 Audit period: Year ended June 30, 2024 The finding from the June 30, 2024 Schedule of Findings and Questioned Costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. Findings - Federal Award Programs Audits Finding No. 2024-001: Supportive Housing for Persons with Disabilities (Section 811), CFDA #14.181 Recommendation: We recommend that management ensure the required recertifications are performed annually. Views of Responsible Officials and Corrective Action Plan: Management has hired additional employees to fully staff the leasing department. Management will ensure that all required recertifications are performed going forward. If HUD has questions regarding this plan, please call Mr. Everett McElveen at 919-754-9960. Sincerely yours, Everett McElveen CEO CASA

2023-001

Condition: Required annual tenant recertifications were not conducted during the fiscal year. Criteria: Tenants are required to be recertified annually to ensure they still meet program requirements. Effect: Tenants may no longer meet program requirements. Cause: CASA, who is the management company experienced turnover and staffing issues at all levels including management and the leasing department. There was consistent turnover throughout the year so the leasing department who conducts the tenant recertifications was not suitably staffed or trained. Context: Population size is nine tenants. We initially selected three tenants for testing, discovered the recertifications had not been performed an inquired whether any of the recertifications had been conducted. Per management, none of the tenant recertifications had been performed.

Recommendation: CASA should take all possible steps to ensure its leasing department is adequately staffed. Additionally, CASA should ensure new staff are being properly trained on the requirements of this program. Views of Responsible Officials and Planned Corrective Actions: CASA has hired additional employees and the leasing department is now fully staffed. In addition, one employee is devoted to this program and is currently in the process of conducting all of the required tenant recertifications. This is expected to be completed by November 2023. Lastly, all new leasing employees have gone through the required training.

Finding 2022-001 Condition: Updated HUD tenant assistance payments were not being updated in CASA?s system after recertification. The calculated payments during recertification were done correctly. Criteria: HUD tenant assistance payments are to be updated annually based on tenant recertifications. Effect: Incorrect HUD tenant assistance payments were being requested. Cause: Due to personnel changes, the updated HUD tenant assistance payments were not being entered into CASA?s system. Context: Population size is nine tenants. We tested three tenants who had recertifications during the year. On one tenant tested, the recertification was correctly calculated but the HUD tenant assistance payment was not updated to reflect the recertified amount. The amount of questioned costs for the year were $48. Recommendation: CASA should ensure better document the recertification and HUD tenant assistance payment process to ensure new staff are aware of all required procedures. Further, CASA should ensure adequate training is being provided to all new staff in this role. Views of Responsible Officials and Planned Corrective Actions: Personnel have now been properly trained on entering information after recertification occurs. Further, these procedures are now documented.

Recommendation: CASA should ensure better document the recertification and HUD tenant assistance payment process to ensure new staff are aware of all required procedures. Further, CASA should ensure adequate training is being provided to all new staff in this role. Views of Responsible Officials and Planned Corrective Actions: Personnel have now been properly trained on entering information after recertification occurs. Further, these procedures are now documented.