Finding 2025-001: Reportable Finding Considered a Significant Deficiency - Eligibility Program name: Supportive Housing for Elderly Assistance Listing: 14.157 Federal award Identification number: 121-EE-077 Federal award year: 2025 Federal awarding agency: U.S. Department of Housing and Urban Development (HUD) Criteria: Per HUD Handbook 4350.3, Chapter 9, Section 1, 9-5B "Owners must use the EIV system in its entirety". Condition: Management is not in compliance with HUD requirement for Housing Assistance Payment Contract Administration. Cause: Internal controls over compliance with program compliance requirements are not operating effectively. Effect or Potential Effect: Assistance Payments could be incorrect. Repeat finding: This is not a repeat finding. Questioned costs: There are no questioned costs associated with this finding. Perspective: EIV Summary Report, Income Report, and Income Discrepancy Reports was not in 2 of the 9 files tested. Recommendation: We recommend the Owner/Agent review controls over compliance with the EIV reporting requirements. Management’s response and corrective action plan (unaudited): Management at Satellite Affordable Housing Associates Property Management (“SAHA PM”) will implement a review process to ensure that all required EIV reports are run timely and maintained in the tenant lease file as required by HUD Handbook 4350.3, Chapter 9, Section 1, 9-5B.
Management at Satellite Affordable Housing Associates Property Management (“SAHA PM”) will implement a review process to ensure that all required EIV reports are run timely and maintained in the tenant lease file as required by HUD Handbook 4350.3, Chapter 9, Section 1, 9-5B.
Finding No. 2019-001 CFDA Number: 14.157 Program Name: Supportive Housing for the Elderly (Section 202) Federal Agency: Department of Housing and Urban Development Federal Award Type: Significant Deficiency and Noncompliance Compliance Requirement: Reporting Questioned Costs: N/A Repeat Finding: No Criteria Management is responsible for calculating the tenant's contribution toward rent and utilities and calculating subsidy in accordance with the Uniform Guidance requirements. Condition We noted one instance during our testing where the selected tenant's file computation of tenant's contribution toward rent and the subsidized portion was calculated incorrectly. Cause Management's policies were not followed with respect to tenant file review. Effect of Condition The Project is out of compliance with the reporting requirements detailed in the Uniform Guidance. Recommendations We recommend that the Project implement controls and procedures for tenant file reviews to ensure the computation of tenant's contribution toward rent and utilities and calculating subsidy is in accordance with the Uniform Guidance requirements. Reporting Views of Responsible Officials Management is aware that tenant's income must be correctly identified and calculated during the annual recertification process. Completion Date The tenant's file was updated on November 28, 2019 to correct the error.
Finding 2019-001 CAP Prepared by: Alane Harden, Site Administrator Telephone: (925) 454-9605 Comments: Management agrees with the finding. Actions: Management will review controls and processes to correctly identify and calculate annual income during the annual certification of tenants and implement necessary controls to ensure all tenant income is correctly identified and calculated on an annual basis.
Finding No. 2019-002 CFDA Number: 14.157 Program Name: Supportive Housing for the Elderly (Section 202) Federal Agency: Department of Housing and Urban Development Federal Award Type: Significant Deficiency and Noncompliance Compliance Requirement: Special Tests Questioned Costs: N/A Repeat Finding: No Criteria Management is responsible to fund $5,000 monthly into the replacement reserve account. Condition The Project was granted a 6-month temporary suspension on monthly replacement reserve funding by HUD, however, the Project funded only $25,000 (five months), of the required $30,000, into the replacement reserve account. Cause The Project failed to fund the entire requirement of $30,000 into the replacement reserve account. Effect of Condition The Project is out of compliance with the terms of its loan agreement. Recommendations We recommend that policies and procedures be reviewed and updated to ensure that monthly deposits to the replacement reserve are made. We also recommend that the Project deposit an additional $5,000 into the replacement reserve account. Reporting Views of Responsible Officials Management agrees with the recommendation and will work to update policies and procedures to ensure all monthly required deposits to the replacement reserve are made. Additionally, management will fund $5,000 of additional reserve deposits in 2020 to make the account whole. Completion Date Management expects to make the additional reserve deposit in January 2020.
Finding 2019-002 CAP Prepared by: Sara Abramowitz-Hill, VP of Asset Management Telephone: (510) 809-2759 Comments: Management agrees with the finding. Actions: Management will review controls and processes to ensure all monthly required deposits to the replacement reserve are made. Additionally, management will fund $5,000 of additional reserve deposits in 2020 to make the account whole.
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