Lowell Terrace Corporation HUD Project No.101-HD022-NP-CMI

Finding: Eligibility Federal Assistance Listing No. 14.181 Supportive Housing for Persons with Disabilities (Section 811) U.S. Department of Housing and Urban Development Criteria or Specific Requirement: In accordance with 24 CFR section 891.410, section 5.230, and OMB No. 2502-0204, owner shall re-examine tenant eligibility at least every 12 months with respect to family income, composition and is required to obtain signed consent forms from assistance applicants. In accordance with HUD Multifamily Occupancy Handbook, Chapter 7, annual certification should be completed and submitted through TRACS within 15 months from previous year’s anniversary date. Condition: For two out of three testing selections, Lowell Terrace Corporation did not obtain and submit the required recertification within the required time period. Lowell Terrace Corporation has contracted out this process to a third-party vendor. Recertification was completed 16 months after previous year’s anniversary date. Our sampling methodology was no, and was not intended to be, statistically valid. Questioned Costs: N/A Effect: Recertification did not occur within the required time period. Cause: Lowell Terrace Corporation did not have controls to ensure timely completion of annual recertifications. Identification as a repeat finding: Not a repeat finding Recommendation: We recommend that the Lowell Terrace Corporation add monitoring controls to help ensure recertifications occur in accordance with 24 CFR section 891-410, section 5.230, and OMB No. 2502-0204. Views of Responsible Officials: The Organization agrees with the finding. See separate auditee document for planned corrective action.