Guide Nashville Homes, Inc.Non-Profit

2021-001 Federal Program: 14.181 Supportive Housing for Persons with Disabilities (Section 811) Criteria: The U.S. Department of Housing and Urban Development per July 2021 OMB Compliance Supplement stipulates that resident (tenant) eligibility is determined at move-in or at initial certification. Part of the eligibility requirements (24 CFR Part 5) requires the owner to determine resident?s eligibility and to effect electronic submission of form HUD-50059 information. When the owner uses a service bureau to submit this information, it is required to obtain both management and resident signature on this form with a copy provided to resident, a copy attached to lease agreement and a copy maintained in resident file. Also, the resident is required to sign the lease agreement. Condition: For the year under audit, there was one new certification (move-in). Per our review of available documentation, form HUD-50059 was not signed by resident or management and there was no signed lease agreement. Cause: The Company?s sponsor was in the midst of a significant reorganization. Also, the Company had just emerged from finalizing significant repairs to one of the group homes due to a fire. It appears the person responsible for ensuring obtaining these signatures was in the process of being reassigned and management did not provide for oversight of her previous functions during this time period. Effect: The Company was not in compliance with stipulated regulations. Context: Out of two group homes having total occupancy capacity of 12 residents, there was one new move-in for the year under audit. Recommendation: Management should assign someone to monitor compliance with signature requirements, possibly by periodically reviewing tenant files on an unannounced basis and documenting the result. Managements? View: See Corrective Action Plan.