Warren Village, Inc.

U.S. Department of Housing and Urban Development - Section 8 - Housing Assistance Payments Program Criteria: Condition: Assistance Listing No. 14, 195 Eligibility, Significant Deficiency The Uniform Guidance requires the verification of eligibility for individuals which includes (among other requirements) obtaining signed applications that contains the information needed to determine eligibility as well as documenting tenant certifications. In a tenant file sample of 17 tenants, 2 tenant files identified exceptions to compliance with eligibility requirements. Both tenant files with exceptions were tenants that moved into units between July 2024 and August 2024. One tenant file contained the tenant lease agreement that was not signed by the tenant nor the Organization housing supervisor and the tenant pre-application that was not signed by either party. The other tenant file contained no copy of the HUD Form 50059. As a component of the Organization's internal control over eligibility compliance, the Organization has implemented a signature required by a housing representative directly on the Form 50059 as evidence of a complete tenant certification process occurring at a minimum once every twelve months. One tenant file identified as an exception included the Form 50059 that was not signed and the other tenant file identified as an exception was missing the Form 50059. Effect: The Organization is at risk of jeopardizing the continued funding provided by the U.S. Department of Housing and Urban Development. Questioned Costs: None. Cause: The Organization changed property management companies during the summer of 2024. During the transition, there was an oversight deficiency around the complete tenant certification process as the process and compliance protocols changed between management agencies. Recommendation: We recommend that the Organization confer with Property Management staff to examine selected tenant files from the transition of property management companies through the recertification period of all tenants up to July and August 2025 to ensure appropriate evidence is contained within all tenant files to support complete tenant certification and eligibility. Response: The Organization has already discussed with property management a review of all tenant files from June 2024 to present and requested a third-party compliance company be engaged. Corrections will be made where feasible along with ongoing process improvements, including the implementation of a new internal Housing Director position to provide greater oversight of files and property management accountability.