Sabin Group I HUD Project No 101 -HH003-NP-CMI-L8

Finding: Eligibility Federal Assistance Listing No. 14.157 Supportive Housing for the Elderly (Section 202) 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 one out of five testing selections, Sabin Group I did not obtain and submit the required recertification within the required time period. Sabin Group I has contracted out this process to a third-party vendor. Recertification was completed 16 months after previous year’s anniversary date. Our sample was not intended to be statistically valid. Questioned Costs: N/A Effect: Recertification did not occur within the required time period. Cause: Sabin Group I 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 Sabin Group I 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.